Trade & Empire

During the 18th century, the British government was not trying to build a big empire.
Politicians that that the colonies would cost money to run and a large British navy
would be needed to protect colonies from attack. By 1850, however, thinking had
changed and having an empire was seen a source of wealth.
The industrial development of Britain is linked to the development of trade and growth
of the British Empire. From a small trading nation in 1750, Britain emerged as the
largest empire on earth by 1900.

In 1783 Britain suffered a setback

when the North American colonies
broke away from Britain.

By 1900, Britain ruled a quarter of

all the people in the world.

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 British Empire in India

The British East India Company (BEIC)

British East India Company (1600–1874) was chartered by Queen Elizabeth I for trade
with Asia. The original object of the group of merchants involved was to break the
Dutch monopoly of the spice trade with the East Indies. However, after 1623, when the
Dutch at Amboina massacred the English traders, the company admitted defeat in that
endeavour and concentrated its activities in India.
From around 1600AD, Mughal Emperor Jahangir accepted the request of Sir Thomas
Roe and the British East India Company (BEIC) received trading rights to trade in
Indian goods such as spices, silk and tea. Sir Thomas Roe began his diplomatic career
in
India as ambassador to the court of the Mughal Emperor Jahangir. In his four years
of duty (1614–18) there he furthered the fortunes of the English East India Company.
By 1700, the BEIC By 1700 had set-up three trading posts in India.

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1700-1750: Problems?

• The British EIC had control over Bombay, Calcutta and Madras, but then war
broke out between rival Indian princes, and the French interfered, making the
Indians trade with France (and not Britain).

• This became worse due to Seven Years’ War between France & Britain.

Robert Clive Conquers India

Robert Clive worked in an office for the BEIC. The BEIC’s force of armed guards was
growing into an army; Clive joined them as an officer. In 1751 Clive led 500 men against
10,000 French and Indian soldiers and won! Clive led the BEIC’s army to victory many
more times, forcing the French out and making the East India Company very powerful –
it wasn’t the British government taking over India – it was a British business!

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Gandhi said that India and Britain were joined by a thread’

He actually meant the relationship between Britain and India were based on cotton
trade. By 1800, the cotton industry in England was bigger and more important than the
wool industry. Specialist textile towns such as Manchester and Liverpool had thriving
businesses. The British textile industry was dependent on the supply of raw materials
from its colonies. With the independence of the southern states of USA, India became
the main supplier of raw material for British textile industries.

India was also used as a huge market for the British textile industry. The British
monopolized the sale of cotton cloth. The British textile was sold cheaper than the
Indian hand made textile. Peasants became dependent on renting land and growing
cash crops such as indigo, cotton and jute for export to Britain. By the later half of the
19th century, Britain started establishing industries in India, which helped to some
extent to modernize the Indian industries. On the other hand, in Britain, specialist
textile towns such as Manchester and Liverpool had thriving businesses. The House of
Commons’ Select Committee’s report of 1840 (source 4), states that the British policy in
India helped in increasing employment and wealth in English society but increased
poverty and unemployment in India.

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PAUSE to think…was the British Empire good for Britain and bad for Indian
cotton industry?

From about 1800AD British Governors tried to bring in many changes in India.

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 Events of 1857- A mutiny or revolt

In 1857, the refusal of Indian soldiers to obey their British officers, capturing and
imprisoning them is called a mutiny by the British but a rebellion (revolt) by others.
Let’s examine the reasons, extent and the participation of different sections of Indian
society…

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The rebel manifesto printed in Delhi Gazette, in September 1857 highlights the causes
of discontent as follows-
**Poverty caused by British policies: The traders and merchants had suffered due to
monopoly of trade and customs imposed by the British, British industrial policy led to
the destruction of Indian industries leaving the artisans and weavers unemployed, the
high taxation caused much discontent amongst the landowners and peasants who lost
their land, introduction of English as the government language led to unemployment of
Indian officials and low salary and status of Indians employed in civil and military
services angered the Indians. The pay of Indian soldiers (sepoys), who were working
for the BEIC army, was reduced.
**Prestige of Indian rulers: Indian rulers not only lost their prestige when the British
took over but with the introduction of Doctrine of Lapse, they lost freedom in their
personal affairs as well.
**Religion: Indians resented the activities of Christian missionaries and feared that the
British were trying to convert them to Christianity. This was fuelled further by the

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introduction of Lee Enfield Rifles that had animal fat greased cartridges to be opened
by mouth. The Hindu practice of Sati is believed to have originated some 700 years ago
in India. Women were burnt on the funeral pyre of their husband. It was seen as a
measure of wifely devotion and sometimes relatives would tie-up the wife, forcing her
to die. The main reason was economic- Widows had rights over her husband’s
property. India’s British rulers outlawed this custom in 1829 following demands by
Indian reformers. But many Indians were against change – especially when forced by
the British.

The participation of different classes of the society i.e. soldiers, artisans, traders,
peasants and landowners as well as some of the Indian kings suggests that the
discontent was not limited to the soldiers only. The fight started in Bengal but soon
spread to most of North India including Delhi and in central and south India till
Carnatic. Fighting continued throughout the year and British rule could only be
restored by later half of 1858.

The ‘British Raj’: 1858-1947

In 1858 in response to the rebellion, the British Government abolished the rule of East
India Company and declared that India would be ruled directly by the British
Government. The army brought more British officers to India to prevent anymore
rebellions. This British ‘raj’, meaning ‘rule’, continued till India got independence in
1947.

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