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## Colonisation of India (From Trade to Territory) ### Key Terms - **Charter:** The grant of rights and privileges to a company/group of people, always a written document - **Customs Duty:** Tax charged on the import of foreign goods - **Export:** To sell goods to foreign countries - **Import:** T...

## Colonisation of India (From Trade to Territory) ### Key Terms - **Charter:** The grant of rights and privileges to a company/group of people, always a written document - **Customs Duty:** Tax charged on the import of foreign goods - **Export:** To sell goods to foreign countries - **Import:** To buy goods from foreign countries - **Mercantilism:** A national economic policy that seeks to create profits by strict control of trade so as to increase power of the nation - **Monopoly:** Complete control of trade - **Mufti:** Jurist of Muslim community responsible for expounding the law that the Qazi would administer - **Qazi:** Judge - **Sepoy:** An Indian soldier serving in the British army In 1707, the last powerful Mughal ruler, Aurangzeb, died. After his death, many powerful Mughal governors (subedars) and zamindars began asserting their authority. There emerged several powerful regional kingdoms in different parts of India. The power of Delhi declined significantly and it no longer functioned as an effective centre. On the political horizon of India, a new power emerged by the second-half of the 18th century. They were the British, who originally came as a small trading company and gradually acquired political power. ### Advent of European Companies By the end of the 16th century, European overseas trade with the East began to yield enormous profits. Groups of merchants were permitted by rulers of some European countries to start trading companies. They established their trading centres in various parts of the world, especially on the coasts. These centres were called factories because the officials of the companies were known as factors. These companies were given monopoly (exclusive rights) of trade with the East. This implied that no other merchant(s) could participate in the eastern trade. In return, the ruler received a share of the profit. ### English East India Company (EEIC) On 31 December, 1600, Queen Elizabeth I issued a charter granting East India Company the monopoly to trade with the East for 15 years. This meant that no other trading company in England could compete with the East India Company. It was a private company run by a Board of Directors. **View of an East India Company Factory** The first trading depot of the East India Company was set up in Surat by the end of the 16th century. Mughal Emperor Jahangir gave them permission to set up factories in different places. The East India Company set up its factories in two places, Surat and Hugli (West Bengal), in the 17th century, and many locations in the 18th century, which were centres of international trade dealing in spices, cotton, raw silk and indigo. ### French East India Company The French East India Company established its settlements at Cochin (Kerala), Karaikal, Pondicherry on the Coromandel Coast, and Mahe on the Malabar Coast. The French East India Company was a government-controlled company. It largely depended on the French government for funding. A major figure who played a key role in establishing French power in India was François Martin, who was the Governor General of French East India Company in India.