6 Questions
What was the purpose of the first English factory set up on the banks of the River Hugli in 1651?
To operate as a base for company traders known as factors.
In 1696, what did the company begin building around the settlement near the first English factory?
A fort.
How did the English East India Company gain control over three villages, including Kalikata?
By bribing Mughal officials into granting them zamindari rights.
What did the Mughal Emperor Aurangzeb grant to the English East India Company through a farman?
The right to trade duty-free.
How did the officials of the English East India Company cause an enormous loss of revenue for Bengal despite the duty-free trade grant?
By engaging in private trade on the side and avoiding duty payments.
What tactics did the English East India Company continuously employ to enhance their privileges and manipulate existing rights?
Constantly pressing for more concessions and exploiting loopholes in existing privileges.
Study Notes
The Establishment of the First English Factory
- The first English factory was set up on the banks of the River Hugly in 1651.
- The factory served as a base for Company traders, known as factors, to operate from.
- It consisted of a warehouse for storing goods for export and offices for Company officials.
Expansion of Trade and Settlement
- As trade expanded, the Company persuaded merchants and traders to settle near the factory.
- By 1696, the Company began building a fort around the settlement.
- In 1698, the Company bribed Mughal officials to grant it zamindari rights over three villages, including Kalikata.
Growth of Kalikata and Trading Privileges
- Kalikata eventually grew into the city of Calcutta (now Kolkata).
- The Company obtained a farman from Mughal Emperor Aurangzeb in 1698, granting it the right to trade duty-free.
- However, Company officials engaged in private trade on the side were expected to pay duty, causing a significant loss of revenue for Bengal.
Company's Pursuit of Privileges
- The Company continuously pressed for more concessions and manipulated existing privileges to its advantage.
- The Company's officials exploited loopholes in the farman to avoid paying duty on their private trade.
Test your knowledge about the establishment of the first English factory on the banks of the River Hooghly in 1651 and how it led to the expansion of trade in the region. Learn about the factors that operated within the factory and how it influenced the establishment of a fort and settlement in the area.
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