East India Company Begins Trade in Bengal
The East India Company’s entry into Bengal marked a significant chapter in the history of trade in the Indian subcontinent.The East India Company established its presence in Bengal with the following facts:
- In 1651, the Company set up its first English factory on the banks of the river Hugli.
- This factory served as the operational base for the Company’s traders, known as “factors.”
- The factory included a warehouse for storing export goods and offices for Company officials.
- As trade expanded, the Company encouraged merchants and traders to settle near the factory.
- By 1696, the Company began constructing a fort around the settlement for protection.
- Within two years, the Company obtained zamindari rights over three villages, including Kalikata, which later became Kolkata.
- The Company also secured a farman from Mughal Emperor Aurangzeb, granting it the right to trade duty-free.
- Despite Aurangzeb’s farman, Company officials engaged in private trade and refused to pay duties, causing revenue loss for Bengal.
- The Nawab of Bengal, Murshid Quli Khan, was forced to protest against the Company’s actions.
Trade in Bengal By East India Company | Class 8 History Notes
Trade-In Bengal by East India Company: According to the syllabus of NCERT Class 8, History – Chapter 2: From Trade to Territory: The Company Establishes Power: With the demise of Aurangzeb, the mighty Mughal Empire began to fracture, paving the way for the rise of regional powers across the Indian subcontinent. In the wake of Aurangzeb’s death in 1707, Mughal governors and influential zamindars started to assert their control, leading to the fragmentation of central authority in Delhi.
This period of political turbulence set the stage for the emergence of a new force on the horizon by the latter half of the eighteenth century. As the Mughal Empire weakened, an entity known as the East India Company began to make its mark, heralding significant shifts in trade, governance, and ultimately, the destiny of the Indian subcontinent.
Trade in Bengal By East India Company – Class-8 Notes