East India Trading

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East India Trading forms an integral part of the Indian economic history. The foreign merchant associations like those of the Dutch, the French, or the British formed East India companies in order to set up trading establishments in India. On 1600 a group of British merchants formed a trading association known as the British East India Company. They received the monopoly trading rights with the East Indies. In the year 1608, the Company's ships first arrived in India, at the port of Surat and in 1615, they gained the permission to set up a factory there from the then Mughal ruler, Jahangir.

Over the years the East India Trading flourished with many new trading centers coming up along the east and west coasts of India. The main consequence that followed is the rise of numerous English communities around the major towns of Calcutta, Bombay, and Madras. The East India Trading further got an impetus when in 1717 the Company received a Firman or royal diktat from the Mughal Emperor which exempted it from the payment of custom duties in Bengal.

The year 1757 marked another landmark in the history of East India Trading, as with the defeat of the Bengal Nawab at the Battle of Plassey, the East India company acquired the right to collect revenues on behalf of the Mughal Emperor. In the next few years, there was a total drain of wealth from Bengal by the Company and the East India Trading flourished. The revenue earned from the East India Trading was used by the Britishers to tide their military expenditures.

Gradually, from just a trading association, the Company got more involved in the territorial expansion in India and the major victories of the British rulers against Tipu Sultan of Mysore, the Marathas, and the Sikhs in a series of Anglo- Sikh Wars led to the occupation of the entire country. However, in the next 100 years the fate of the East India Company changed with the annexation of native states, harsh revenue policies, and the Sepoy Mutiny. In 1858, the Company got dissolved and with it the East India Trading came to an end.