Traders to Rulers

The East India Company, which came to India as a trader, in course of time realised that in order to obtain maximum profits from Indian Trade, it has to secure political power, backed by force. The motives that led the British to follow an expansionist policy in India were:

1. The British needed to counter the claims of rival Portuguese, French and Dutch companies.
2. They needed to have political power as well as army in order to safeguard and further the company's commercial interests.
3. The deplorable political situation in India favoured their expansionist policy.
4. They needed to counter the imperialistic designs of other Indian powers and to fulfil their own imperialistic pursuits.

The methods adopted by the British to expand their empire in India were:

1. By outright wars.
2. By the system of Subsidiary Alliance.
3. By adopting the Doctrine of Lapse.
4. On the pretext of Alleged Misrule.

Reasons leading to the Battle of Plassey in 1757 were the Nawab of Bengal challenging the British activities such as:

1. Non-payment of taxes.
2. Levying of heavy duties on Indian goods entering Kolkata which was under their control.
3. Fortification of their factory.
4. Capturing the French settlement of Chandernagore in March 1757.

Before the battle, Robert Clive, the Governor of Bengal, won over some of the members of Siraj-ud-Daulah's court like his Commander-in-chief, Mir Jafar and Khadim Khan, who commanded the Nawab's troops. Due to this, major part of the Nawab's army, led by the traitors, did not take part in the fighting and the Nawab was defeated.

Following were the results of the Battle of Buxar:

1. The English power in northern India became unchallengeable. The new Nawab of Bengal became their puppet, the nawab of Awadh a subordinate ally and Mughal Emperor, Shah Alam II, their pensioner.
2. The East India Company got the nizamat functions, i.e., the military, defence and foreign affairs of the province and the right to nominate the Deputy Subehdar or Diwan.
3. From Emperor Shah Alam II, the company got Diwani functions, i.e., the right to collect the revenue from Bengal, Bihar and Orissa for an annual payment of Rs. 26 lakhs to the Emperor.
4. Robert Clive concluded the Treaty of Allahabad, by which Nawab of Awadh, Shuja-ud-daula surrendered Allahabad and Kora and agreed to pay Rs 50 lakhs as war indemnity.
5. Shah Alam was given protection by second Treaty of Allahabad. He was asssigned Allahabad and Kora in return for Diwani of Bengal, Bihar and Odisha.

Robert Clive, the Governor of Bengal introduced Dyarchy or dual government in Bengal in 1765. This meant the rule of the two, the Nawab of Bengal and the East India Company. The Company had secured the Diwani powers and nizamat functions of Bengal. However, Robert Clive felt that it was not possible for the company to shoulder the burden of administration. Therefore, he introduced a dual system of government in Bengal. The company had direct control on revenue collection and the the Nawab looked after the administration for which he was paid a fixed amount. The company also appointed two deputy governors, Mohammad Raza Khan and Shitab Roy to carry on the task of administration. Thus the real power passed into the hands of the company but Dyarchy or dual system served to hide this fact.

The terms of Lord Wellesley's Subsidiary Alliance were:

1. The rulers who signed it had to accept the British as the supreme power.
2. They had to maintain British troops at their own cost.
3. They had to keep a British officer known as the Resident at their courts.
4. They would not have any other foreigner (other than British) in their kingdom.
5. They were not allowed to negotiate with any other kingdom without prior approval of the British.

Impact of Subsidiary Alliance on Indian Rulers who accepted it were following:

1. It disarmed the Indian states and deprived the Indian princes the means of forming any confederacy against the British.
2. By accepting disarmament and surrendering foreign relations, the Indian states accepted a subordinate position and virtually lost their independence.
3. Administration and military became very weak.
4. Heavy taxes were imposed on the subjects to meet the cost of maintaining British troops.

Advantages of Subsidiary Alliance to the British were:

1. They got control of Indian states without waging wars.
2. Their army was well maintained at the expenses of Indian rulers.
3. It enabled the British to keep a close eye on the Indian states through their Resident in the courts of these states.
4. The stationing of the Company's troops in the capitals of the Indian states gave the British the control of strategic and key positions in India.
5. It averted the danger of Indian rulers forming an alliance against the British.

Under the system of the Doctrine of Lapse, if an Indian ruler died without a natural heir, the adopted child would not have any right to inherit the throne. After the death of the ruler, his kingdom used to be annexed to the British territories.

Rani Laxmi Bai had to rise against the British because the kingdom of Jhansi was annexed by the British according to the Doctrine of Lapse. After the death of the ruler of Jhansi, Gangadhar Rao, the claims of his adopted son were disregarded by British and then Laxmi Bai had to rise to settle scores with the British.

(a) Treaty of Mangalore (b) Treaty of Seringapatam

(a) Hyderabad (b) Awadh

(a) Satara (b) Sambalpur

(a) Treaty of Salbai (b) Treaty of Bassein

(a) Allahabad (b) Kora

(a) The event which is shown in the picture is granting of Diwani to the British Governor by Mughal Emperor Shah Alam II.

(b) The British got the Diwani function i.e., the right to collect revenue from Bengal, Bihar and Odisha for an annual payment of Rs. 26 lakhs to the Emperor. From the Nawab of Bengal, they got the nizamat functions, i.e., the military, defence and foreign affairs of Bengal and the right to nominate the Deputy Subehdar or Diwan.

(c) The British used these rights to control the revenues, military, defence and foreign affairs of the provinces. They used to exploit the people by taxing them heavily and maximizing profits for themselves.

They were known as Diwani and Nizamat.

Three drawbacks of these rights were:

1. The people groan under heavy and strict taxation.
2. Indian trade and commerce were worst affected. The Indian artisans and weavers were forced by the company officers to sell their products at cheaper rates.
3. The Nawab had no power to enforce law and provide justice. The Company on its part gave up all the responsibility for administration. The whole administration from top to bottom was corrupt.