֍ A group of wealthy merchants of Leadenhall Street in London secured a royal charter from Queen Elizabeth I to have a share in the lucrative spice trade with the East.
֍ The Company, headed by a governor, was managed by a court of 24 Directors.
֍ In 1611, King James I obtained from Mughal Emperor Jahangir through William Hawkins, permission for regular trade.
֍ The English obtained some trading privileges in Surat.
֍ In 1615–19 Sir Thomas Roe was sent as an Ambassador of the English King James I.
֍ The Viceroy of Gujarat, Prince Khurram granted trading privileges, but the British could not operate freely because the Portuguese exercised a powerful influence in the region.
֍ Madras was ceded to East India Company in 1639 by the Raja of Chandragiri with permission to build a
fortified factory which was named Fort St. George. This was the first landholding recorded by the Company on Indian soil.
֍ In 1645, the ruler of Golconda overran the territories under the Company’s control in Madras.
֍ Aurangzeb conquered Golconda in 1687 and brought the Company territories under Mughal rule. But the privileges granted to the English continued.
֍ Within a short time Madras replaced Masulipatinam as the headquarters of the English on the Coromandel Coast.
֍ The island of Bombay, which Charles II had inherited as dowry, was transferred to the Company in 1668.
֍ The Charter of 1683 empowered the Company to raise military forces and the right to declare war or make peace with the powers in America, Africa and Asia.
֍ In 1688 Madras had a municipal government with a Mayor.
֍ In 1693 the Company obtained another grant of three villages surrounding Madras and in 1702 five more villages were granted.
Bengal
֍ In Bengal it was a long drawn struggle for the British to obtain trading rights.
֍ The Company obtained trading privileges from Shah Shuja, the second son of Shajahan and the Governor of Bengal, but there was no royal confirmation of such privileges.
֍ The trading rights for the British in Bengal were obtained only in 1680.
֍ Local officials interfered with the trading rights of the British and this resulted in the Company declaring war with the ruler representing the Mughals.
֍ Peace was restored in 1690 and the Company established its first settlement at Sultanuti, a site which became the future Calcutta.
֍ The factory was fortified in 1696 and in 1698 the Company secured the zamindari rights over three villages, Sutanuti, Kalikata and Gobindpur in return for a payment of 1200 rupees a year.
֍ The fortified factory was called Fort St. William which became the headquarters of the Presidency in 1770.
Establishment of Factories by East India Company
West Coast:
The English established factories at Agra, Ahmadabad, Baroda and Broach by 1619, all of which were placed under the control of the president and council of the Surat factory.
The company acquired Bombay from Charles II on lease at an annual rental often pounds in 1668.
South-eastern Coast:
Factories were established at Masulipatam (1611) and Armagaon near Pulicat (1626).
Eastern India:
Factories were set up at Hariharpur and Balasore in Orissa (1633), at Hugli in 1651, followed by those at Patna, Dacca, Kasimbazar in Bengal and Bihar.
Must read: What were the causes of British success in India?
Why the English Succeeded against Other European Powers?
External link: https://en.wikipedia.org/wiki/East_India_Company
PRACTICE QUESTIONS
QUES . In the first quarter of seventeenth century, in which of the following was/were the factory/factories of the English East India Company located? UPSC 2021
1 . Broach
2 . Chicacole
3 . Trichinopoly
Select the correct answer using the code given below.
(a) 1 only
(b) 1 and 2
(c) 3 only
(d) 2 and 3
Ans (a) EXPLANATION: During Carnatic wars (18th C), in return for the French help to Salabat Jung, to the throne of Hyderabad as Nizam, Salabat granted the French the area in Andhra known as Northern Circars (The Northern Circars were 5 in number: Chicacole (Srikakulam), Rajahmundry, Eluru, Kondapalli and Guntur). So during the first quarter of 17th C, Chicacole was under the control of regional kingdoms. There was no East India company factory here. Also during the same Carnatic wars , Trichinopoly was under the Kingdom of Arcot, as there was famous incident of seize of Trichinopoly. There was no English East India Company factory here too.
