East India Company begins trade in Bengal

Set up of East India Company in Bengal

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East India Company begins trade in Bengal by Mind Map: East India Company begins trade in Bengal

1. 1st English factory

1.1. set up on the banks of revier HUGLI 1651

1.2. base from which company's trader operated

2. Warehouse

2.1. good for export were stored

2.2. it had offices where company officials sat

3. When trade expanded

3.1. company persuaded merchants and traders to settle near the factory

3.2. In 1696, they began building a fort around the settlement

3.3. It bribed Mughal officials into giving zamindari rights over three villages

3.4. It also pursuaded Mughal emperor Aurangzeb to issue a 'farman' - granting right to trade duty free.


4.1. Murshid Ali Khan Alivardi Khan Sirajuddaulah

4.1.1. Refused to grant the company consessions

4.1.2. Demanded large tributed to company's right to trade

4.1.3. Denied any right to mint coins

4.1.4. Stopped from extending its fortification

4.2. Accused the company of deceit

4.2.1. Refusing to pay taxes

4.2.2. writing disrespectful letters

4.2.3. trying to humiliate the nawab and his officials


5.1. Alivardi Khan died in 1756 Sirajuddaulah became nawab of Bengal

5.1.1. Company tried to help one of Sirajuddaulah's rivals to become nawab Infuriated Sirajuddaulah asked company To stop meddling in political affairs of his domination Stop fortification Pay revenues

5.2. After failed negotiations

5.2.1. Nawab marched with 30.000 soilder to the English factory at Kassimbazar

5.2.2. Captured company officials

5.2.3. Locked the warehouse

5.2.4. Disarmed all English men

5.2.5. Blockade English ships

5.2.6. Marched to Calcutta to establish control over the company's fort there.

5.3. Hearing the news of the fall of Calcutta

5.3.1. Company forces in Madras sent froces under command of ROBERT CLIVE

5.3.2. Robert Clive led the company's army against Sirajuddaulah at Plassey.

5.4. Defeat of Nawab

5.4.1. REASONS: The forces were led by Mir Jafar, one of Sirajuddaulah's commanders NEVER FAUGHT THE BATTLE Clive promised Mir Jafar to make him the Nawab after crushing Sirajuddaulah.

6. Mir Jafar protested

6.1. Company deposed him

6.2. Installed Mir Qasim in his place

6.2.1. When he Complained

6.2.2. he in turn was defeated in the battle faught at BUXAR 1764

6.2.3. and driven out of Bengal

6.2.4. Mir Jafar was reinstalled The nawab had to pay Rs 500,000 every month but the company wanted more: -To finance its wars -To meet teh demads of trade and its other expenses. - It wanted more terrotories and more revenue.

6.3. After his death in 1765

6.3.1. mood of the company had changed

6.3.2. Clive declared the need of becoming nawab themselves


7.1. Appointed in 1765 by Mughal Emperor

7.1.1. The Diwani allowed company to use the vast revenue resources of Bengal

7.1.2. The company had to buy most of the goods in India with Gold and Silver imported from Britain. Because Britain had no goods to sell in India. The outflow of gold from Britain slowed down after battle of Plassey stopped entirely after the assumption of diwani

7.2. Revenues from India could finance company expenses.

7.2.1. used to purchase cotton and silk textiles

7.2.2. maintain company troops

7.2.3. meet the cost of building company forts and offices at Calcutta