Overwhelming even the long trajectory of the oppressive British Raj, the cementing of a communal divide which was the tragic legacy of Partition, continues to wrathfully shadow an independent India, a bittersweet dream that haunts the waking hours of the progressive Indian
The East India Company (EIC) was a small enterprise run by a group of London merchants, which had been granted a royal charter in 1600. The charter conferred them with monopoly privileges for 15 years on all trade with the East Indies (the whole of Asia and the Pacific). The group set up a joint-stock company that could issue tradable shares on the open market to investors to attract capital. An administration consisting of 24 elected directors, answerable to the shareholders, oversaw their operations through councils based at their settlements in Asia, who ran the factories.
The Company’s ships first arrived in India at the port of Surat in 1608, and gained the right to set up a factory as traders in spices, a primary commodity in Europe back then as it was used to preserve meat. They also traded in silk, cotton, indigo dye, tea and opium.
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By the next century, the Company went from being a commercial enterprise to establishing military supremacy; it wrested control of the province of Bengal in 1757, defeating the Nawab at the Battle of Plassey. In August 1758, the Company’s troops led by Robert Clive defeated the Mughal Emperor Shah Alam and forced him to grant EIC the ‘diwani’, which transferred tax collecting rights in Bengal, Bihar and Orissa to the EIC. It was thus that, within a few years, a trading enterprise had transformed into a ruling colonial power, aided by 250 company clerks and a military force of 20,000 locally recruited Indian soldiers. Answerable only to its stakeholders, the Company looted Bengal and transferred all of its wealth westwards.
By 1803, the Company, with an army that had now grown to 2,60,000 men, had seized control of almost all of India and was now governed by a bunch of directors from a boardroom in London.