Monday, 4 November 2019

Anarchy and East India Company grabbing India



After blogs on Apologetics, I have switched gear and am writing on historical topics in this blog! This topic, especially of the Company and later the Crown of England of British Raj fleecing Indian rulers and Indian resources in the 18th century and until when they left in the 20th century, is a part of my research and written well documented in my first book, “Values and Influence of Religion in Public Administration.” I had devoted an entire chapter on ‘Colonial Ethics,’ where in spite of professing Christianity, they sucked Indian economy dry and left us as a poor Underdeveloped country.

William Dalrymple gives a detailed narrative of how the power vacuum that was present in the 18th century Indian subcontinent due to the decline of Mughal Empire was exploited by the East India Company to their advantage and how the disunity among the then rulers of Indian subcontinent like the Maratthas, Tipu Sultan, Nizam of Hyderabad, etc was again exploited by the British, to play one against the other and win the subcontinent and its rich resources for themselves. He gives a detailed account of the political climate of the times, which I happened to read recently.[1] I will give here some interesting points.

The Company was formed on 31st December 1600 by 218 men in London, ‘Governor and Company of Merchants of London trading to East Indies,’ after obtaining a royal charter to trade in East Indies (Indonesia). Their first fleet safely landed back in June 1603, laden with 900 tons of pepper, cinnamon, and cloves from Acheh, situated in Sumatra, Indonesia, making 300% profit! Due to intense rivalry from a stronger and richer Dutch East India Company, the English East India Company (EIC) left the Spice Islands to less competitive goods, but luxury items, fine cotton textiles, indigo and chintzes[2], all of which were sourced in India. What a tragic turn of events for us Indians!

India in 1600s was producing about a quarter of the world’s manufacturing goods and world’s leader in manufacturing textiles. England was producing less than 3% of the world’s manufactured goods. This table will soon be turned. It is also noteworthy that the Mughal Emperor ruling India that time was the richest in the world, receiving an income of 100 million Pounds (over 10,000 million Pound Sterling today). Mughals kept a large and strong standing army that when Portuguese where flouting Mughal rules they were attacked and expelled from Hughli in Bengal in 1632. Sir Henry Middleton of EIC tried bullying the traders in Surat were attacked and driven away from the area. Only in 1615 the royal envoy of King James Sir Thomas Roe was granted firman (Imperial Order) by Emperor Jahangir to conduct trade, that too reluctantly. He allowed them to build a factory at Surat without giving any major trading privileges. Thus started the 150-200 year old relationship with the Mughal Empire, when the Company behaved an obedient trader, until when they would swallow it alive.

Aurangzeb, the last strong, no-nonsense Emperor died in 1707 and within next 50 years the Company showed its true colors and started to gobble up territorial areas in Indian subcontinent. Aurangzeb’s fanatic Islam and Deccan warfare not only emptied his treasury but also incurred the wrath of Indian rulers like Maratta Shivaji. After his death, Mughal Empire started to crumble. With no worthwhile Emperor, local Nawabs and Marathas asserted their power. Marvari Oswal Jain financiers Jagat Singh became the financiers of the trade in the troubled times, becoming more powerful than the rulers.

Marattas under Baji Rao, attacked and looted Delhi in 1737. Nader Shaw a Persian ruler, invaded Delhi in 1739 with a strong army, defeated Mughal army, looted and massacred the people of India. Some 100000 Delhites were killed. Their properties and women were captured and enslaved. For full eight days the massacre lasted and Delhi was torched. Nader Shaw had to be paid an indemnity of 100 crore rupees just to leave India and go back. He took Jahangir’s Peacock Throne studded with Kohinoor Diamond before leaving. He left with a loot worth 87 million Pound of gold, silver, and precious stones. Mughal Empire was damaged beyond rescue, a terrible blow from which they will never recover. This showed the way for the others, including European trading companies to dream of conquering the rich empire.

The French and the English will now fight for ascendancy and control of the resources of India. This was clinched in favor of the English at the Battle of Plassey in 1757. By 1755, 60% of all EIC exports from Asia were passing through Calcutta and it paid 180,000 Pounds to Mughal custom officers to buy these goods, 75% of it in the form of gold and silver bullion. This will dry up once the company seized control of Bengal. Without going into the political debacle that happened in 1757, Battle of Plassey, the amount paid off to the English Company to have a local leader, Siraj-ud-Daula the Nawab of Bengal changed and to install another, Mir Jafer in that seat, was a scandal. The locals, including the Indian financiers Jagat Singh and co, invited the muscle power of the EIC, which was under the control of Clive then, to effect this and paid for their services: Clive got 234,000 Pounds and a jagir, a landed estate worth annual payment of 27,000 Pound, (232 million Pound in today’s equivalent). Clive became stinking rich and bought estates, lands, and boroughs in England and an MP seat in British parliament. This was in addition to the loot of jewels, precious stones and pearls. Bengal, the once rich and flourishing province will sink into poverty as her treasures and finances were looted and many returned to England as new “Naboobs!” British never paid for the export of goods from  Bengal thereafter. The land revenue of Bengal paid for the export!

Another replacement- installing Mir Quasim in the place of Mir Jafer, brought more payments from the Indians. In the Battle of Buxar in 1765 the Company got the diwani (right to collect revenue and management) of the richest provinces of Mughal Empire, Bengal, Bihar and Orissa. Now on it was Indian wealth that would help propel Britain’s economy. The avarice of the British Company, of scrapping as much as money possible from these provinces directly led to the horrible Bengal famine of 1770, where in three million people perished.

Though praised for being instrumental in establishing British rule in India, Clive was put through impeachment proceedings for the excesses he had committed in India. At the end of a long process, he was exonerated. But very soon Clive took his life by cutting his jugular veins with a blunt paper-knife in 1774, at the age of only 49. As it was a suicide he was not given an honorable burial but was buried secretly in the night in the village church where he was born, and buried in an unmarked grave, without a plaque. A fitting end to a rapacious person, who by deceit and bribery, won his wars with the Indian chiefs, enslaving the country to shop-keepers of Europe.

Very soon the Company would play one Indian ruler against the other, break their unity and grab the entire of India. In the south Haidar Ali was ruling the Mysore State. In 1780 Tipu Sultan, his son defeated the English army in Pollilur in the preset Tamil Nadu. Haidar Ali determined to throw British out of India, drew up a tripartite agreement with Prime Minister Nana Phadnavis, of Maratha Confederacy in 1780 and with the Nizam of Hyderabad. But on his death in 1783, his son Tipu soon lost the advantages and the alliance. British signed a separate treaty with Maratha in 1782. Tipu died fighting the English at Srirangapatnam, in the last Anglo-Mysore war of 1799.

Meanwhile Maratha powers, the young Scindia and Holkar on the death of their respective fathers around 1794, became bitter rivals, paving way for the British to defeat them separately. The wise and efficient Phadnavis died in 1800. Shah Alam, the blind Mughal Emperor who was under the protection of Marathas, was taken under the wings of the British in 1803. Company’s decisions were thereafter taken with the seal of approval of the nominal Emperor which became legitimate in the eyes of the people in India.

India would remain in the hands of the Company till 1857, when the First Indian Independence fight occurred and the country changed hands to that of the British Crown. It will be take another almost 100 years before India could really became independent in 1947. For almost 200 years Indian resources powered the engine of government of Great Britain. Indian itself became poor. A country that was thriving economically under the Mughals became a Third World country when the British left. That is the legacy of British Raj in India.  


[1] William Dalrymple, The Anarchy: The East India Company, Corporate violence, and the Pillage of an Empire, Bloomsbury Publishing, New Delhi, 2019
[2] Printed glazed calico textiles

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