FROM TRADE TO TERRITORY

 Chapter Notes Summary

1. Decline of the Mughal Empire

Aurangzeb died in 1707, after which the once-powerful Mughal Empire weakened.


Regional governors (subadars) and large zamindars rose to power, creating independent states 

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2. East India Company Arrives

Founded in 1600 by Queen Elizabeth I for trade with Asia.


Began in West Bengal with a factory at Hugli (1651); built forts and gained trade rights via Mughal farmans 

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3. From Trade to Power: Conflicts & Battles

Disputes with Bengal nawabs, mainly over duties, tributes, and fortifications, escalated.


The Battle of Plassey (23 June 1757): Clive defeated Siraj-ud-Daulah, giving the Company political control over Bengal 


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The Battle of Buxar followed, solidifying Company authority.


4. Expansion Through Strategies

Diwani rights acquired in 1765 allowed revenue collection in Bengal, Bihar, and Orissa — boosting finances and political influence 


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Subsidiary Alliances forced Indian rulers to station British troops and disband native armies, increasing dependency 


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Doctrine of Lapse under Lord Dalhousie (1848–56): annexation without direct heirs 

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5. Resistance by Indian Rulers

Tipu Sultan of Mysore (“Tiger of Mysore”) resisted Company rule fiercely 


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The Marathas were another major resisting power.


Rani Channamma of Kittur also led uprisings 


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6. Administrative Changes & Army Reforms

Company established centralized administrations: presidencies - Bengal, Bombay, Madras.


Created its own professional sepoy army with infantry dominance, disciplined and drilled in European style 


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By 1857, Company directly ruled over ~63% of territories and ~78% of India’s population 


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✍️ Textual Exercises: NCERT Q&A

1. Match the following

Column A Column B

Diwani Right to collect land revenue

“Tiger of Mysore” Tipu Sultan

Faujdari Adalat Criminal court

Rani Channamma Led an anti-British movement in Kittur

Sipahi Sepoy


2. Fill in the blanks

(a) Battle of Plassey

(b) Haidar Ali and Tipu Sultan ruled Mysore

(c) Dalhousie implemented the Doctrine of Lapse

(d) Maratha kingdoms were mainly in South‑western India 



3. State TRUE or FALSE

(a) The Mughal empire became stronger in the eighteenth century. — False

(b) The English East India Company was the only European company that traded with India. — False

(c) Maharaja Ranjit Singh was the ruler of Punjab. — True

(d) The British did not introduce administrative changes in the territories they conquered. — False 



4. What attracted European trading companies to India?

A vast variety of high-demand goods: spices, textiles, silk, tea.


Wealthy local markets and organized trading cities.


Strategic sea routes that offered commercial advantages 


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5. Areas of conflict between Bengal nawabs and the Company

Nawabs resisted concession demands; blocked trade and refused fort expansion.


Diplomatic friction, heavy tributes, and disrespectful letters.


Company pushed for free trade, duty exemptions, and territorial rights 


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6. How did assumption of Diwani benefit the Company?

Gained control over revenue in Bengal, Bihar, Orissa for efficient exploitation.


Provided funds for military expansion and administrative control.


Enabled political manipulation of Indian states and puppet appointments 

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7. Explain the system of “subsidiary alliance”

Indian states without armies but hosting British troops and Residents.


In return for protection, rulers paid maintenance costs.


This created dependency, eroded sovereignty, and facilitated eventual annexation 


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8. How was Company administration different from Indian rulers’?

Divided territories into presidencies and districts with centralized governance.


British officials and Governor‑General at the helm, unlike decentralized zamindars or nawabs.


Introduced codified laws, modern revenue systems, courts — very different from traditional Mughal administration 

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9. Describe changes in the Company’s army

Transitioned from cavalry‑centric armies to a professionally trained sepoy infantry.


Introduced European-style uniforms, drills, discipline, and weaponry.


Centralized command and a unified military system emerged 


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✅ Final Overview

By 1857, the East India Company had evolved from a commercial enterprise into a dominant territorial power in India—through strategic warfare, political policies (Subsidiary Alliance and Doctrine of Lapse), and administrative reforms. Their 

professionally trained sepoy army and revenue control over vast regions cemented British dominance well before the Revolt of 1857.


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