Evolution of British Rule in India

Evolution of British Rule

• In 1600, the British came to India as traders.
• By 1765, they had gained territorial power with Diwani rights in Bengal, Bihar, and Orissa.
• By 1858, India was directly under the British Crown.
• India gained independence from British rule in 1947.

Reasons to Regulate the East India Company (EIC)

• To establish a clear relationship between the EIC, its possessions, and the British Government.

• The EIC's authority in Britain needed regulation to control officials and soldiers in India.

• It was necessary to achieve a centralized control over British possessions in Bengal, Madras, and Bombay.

• The company's high dividends and wealth aroused jealousy in British society.

• There were desires to abolish the company's monopoly.

• Ministers/Members of Parliament sought popular support by taxing the company for the British Government.

• The Company bought seats in the House of Commons for its agents.

• Concerns arose that the Company would control British administration and threaten British liberties.

• A new school of economists promoted free trade manufacturing Capitalism.

• The EIC had powerful allies in Parliament.

• King George III was its patron.

The Balance of Power

• The British government aimed to control the EIC's basic policies in India.
• The EIC was allowed to keep its monopoly of eastern trade and the right to appoint officials in India.

Company Rule TimeLine (1773–1858)

• Regulating Act of 1773
• Amending Act of 1781
• Pitt's India Act of 1784
• Charter Act of 1793
• Charter Act of 1813
• Charter Act of 1833
• Charter Act of 1853

Regulating Act of 1773

• This was the first step by the British Government to regulate the EIC's affairs in India.
• It acknowledged the Company's political and administrative roles.
• Central administration in India was founded by this act.

Regulating Act of 1773 - Features

• The Governor of Bengal was renamed Governor-General of Bengal and provided an executive council of four members.

• Lord Warren Hastings.

• Decisions were made by majority vote, and the Governor-General had the deciding vote in a tie.

• The governors of Bombay and Madras presidencies were made subordinate to the governor-general of Bengal.

• The Supreme Court was established at Calcutta in 1774 with one chief justice and three other judges (1+3).

• In England, proprietors would elect 24 directors for the Council of Directors (COD) for a period of 04 years.

• The Court of Directors was required to report on revenue, civil, and military affairs in India to the British Government.

• Private trade, gifts, and bribes by company servants were prohibited.

Issues with the Regulating Act of 1773

• No effective control over the Company was in place.
• The Governor-General (GG) depended and relied on his council.
• Quarrels between the Governor-General and his council existed because the Governor-General lacked veto power.
• Legal disputes and anomalies were caused by supreme court's lack of defined powers.

Amending Act of 1781 (Act of Settlement)

• The Supreme Court's jurisdiction was defined to be within Calcutta.
• The Governor General, his council, and company servants were excluded.
• Revenue matters were excluded.
• The Supreme Court did have jurisdiction over all inhabitants of Calcutta
• The court was required to administer the defendant's personal law.
• Government employees were protected from legal action for actions performed while carrying out their duties.

Pitt’s India Act of 1784

• The Company was made a subordinate department of the State, resulting in Supreme Control of British Government.

• A distinction between the Company's commercial and political roles happened.

• This act established a "Double Government".

  • The Court of Directors (COD) was in charge of commercial operations.
  • The Board of Control was designed to handle political issues.

• The Board of Control (BOC) consisted of six members who controlled the Company's civil, military, and revenue matters.

  • Two Cabinet Ministers were members
  • Four Privy Council members

• Company territories became known as 'British Possessions'.

• The Governor-General (GG) was to have a council of three members.

• Madras and Bombay were made subordinate to the GG in matters of war, diplomacy, and revenues.

• Aggressive wars and treaties were generally prohibited.

Charter Act of 1793

• Renewed the Company’s commercial privileges for the next 20 years.
• The Governor-General obtained veto power over council decisions.
• Appointments of the commander-in-chief, governors, and governor-general required royal approval.
• The Company was authorized to issue licenses to both individuals and its own employees to trade in India.
• Trade licenses or "Country trade" facilitated opium shipments to China.
• Until 1919, Indian revenues paid the Board of Control (BOC) members.

Charter Act of 1813

• The Company's trade monopoly in India was abolished, with the exception of commerce with China and tea.
• The Company was to continue possession of its territories and revenue for another 20 years.
• Every year, sum of one lakh rupees was set aside to promote literature, learning, and science among Indians.
• The Councils of Madras, Bombay, and Calcutta-made regulations were required to be submitted to the British Parliament.
• The British territories' constitutional status in India was explicitly established for the first time.
  • British Crown sovereignty asserted.
• Christian missionaries were permitted to preach their religion in India.
• Officials continued to be appointed through company.

Charter Act of 1833

• The Company's lease was extended by another 20 years.

• India territories were governed on behalf of the Crown.

• The Company's monopoly over trade with China and tea was removed.

• All limitations on European colonization and property acquisition in India were abolished.

• Government centralization occurred when The governor-general of Bengal became the governor-general of India.

  • The power to oversee, control, and direct all civil and military operations of the Company was given to him.
  • Lord William Bentick – First GG of India

• Bengal, Madras, Bombay, and all other areas were now totally under the governor-control general.

• The Governments of Madras and Bombay experienced a significant decrease in their legislative authority.

• A law member was added to the governor-council general's (T.B Macauley).

• Indian laws should be codified and integrated.

  • In 1835, Lord Macaulay was named Chairman of the First Law Commission.
  • Sir James Stephen took over for Lord Macaulay as a Law Member.

• It was decided to take steps to improve slaves' living conditions and eventually abolish slavery. (Slavery was abolished in 1843)

• The East India Company's operations as a commercial entity came to an end.

  • Became a pure administrative body.

• A system of open competition was proposed for the selection of civil servants.

• No Indian citizen shall be denied work under the Company because of their religion, color, birth, or ancestry.

  • This rule, however, was overturned after opposition from the Court of Directors.

Charter Act of 1853

• The strength of the COD was reduced to 18 (From 24).
• The services were opened for competitive examination.
  • Macaulay Committee (Committee on Indian Civil Service)
  • Appointed in 1854.
• The law member was made a full member of the governor-executive general's council.
• The establishment of the Indian(Central) Legislative Council was to separate the executive and legislative functions of the British Indian government.
  • Mini Parliament
• A law passed by the Legislative branch needed the Governor-General's (GG) approval.
  • The GG had the power to veto any measure.
• For the first time, the Indian (Central) Legislative Council saw local representation.
• Four of the six new legislative members of the Governor General's council were chosen by the regional administrations of Madras, Bombay, Bengal, and Agra.
• Parliament was free to abolish the Company's rule whenever it saw fit, and there was no set time limit.