CHAPTER 2 FROM TRADE TO TERRITORY, THE COMPANY ESTABLISHES

POWER

1. How did the British East India Company begin trade in Bengal?
Answer : The East India company set up the British factory on the banks
of the river Hugly in the year 1651
• The factory had a ware house where goods for export were
stored.
• By 1696, the company began to build a fort around the
settlement.
• Two years later, it bribed Mughal officials into giving the
company Zamindari rights over three villages.
2. What was the main cause of the Battle of Plassey
Answer : Sirajudaula asked company to stop meddling in the political
affairs of his dominion,stop fortification and pay the revenues.
• After negotiations failed, the Nawab marched with 30,000
soldiers to the English factory at Kassimbazar captured the
company officials and established his control over the company’s
fort at Calcutta.
• On hearing the news Company sent forces under the command of
Robert Clive, in 1757 at Plassey.
• The Company won the battle and took the entire province of
Bengal and appointed Mir Jafar as the Nawab of Bengal.
3. What did Tipu Sultan do that resulted in wars against the Company?
Answer :In 1785 Tipu Sultan stopped the export through the ports of his kingdom
and barred local merchants from trading with East India Company.

He also took the help of the French to modernise his army. This enraged the British
and they waged wars against Tipu Sultan.

3. Explain the system of ‘subsidiary alliance ?

Answer : According to the terms of this alliance, Indian rulers were not
allowed to have their independent armed forces.
• They were to be protected by the company but had to pay for the
subsidiary forces.
• If the Indian ruler failed to make payment, then part of their territory
was taken away as penalty.