Detailed Summary
In 1600, the East India Company was formed with a royal charter from Queen Elizabeth I, granting it the monopoly to trade in the East. Initially focused on trade, the Company faced competition from the Portuguese, Dutch, and French who were already active in Indian waters. The demand for Indian goods like cotton, silk, spices, and more created fierce rivalry.
The Company established its first factory in Bengal in 1651 and gradually expanded its operations, building forts and securing zamindari rights. However, this expansion led to conflicts with local rulers, particularly the nawabs of Bengal, as the Company sought to avoid paying duties promised to the Mughal emperors, resulting in significant loss of revenue for Bengal.
Tensions escalated into military confrontations, notably leading to the Battle of Plassey in 1757. The Company allied with local powers like Mir Jafar against the Nawab Sirajuddaulah, resulting in the latter's defeat and the first substantial victory for the Company in India. This pivotal battle marked the beginning of the Company's transformation from a trading body into a political entity with administrative ambitions, ultimately leading to direct rule over large territories in India by the mid-19th century.