How the East India Company Gained Control Flashcards

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What was the East India Company and why was it set up?

It was a company formed by English merchants in 1600 to trade with Asia, including India. They wanted to make money by buying spices, silk and cotton and selling them in Europe.

What was a Royal Charter and how did it help the East India Company?

A Royal Charter was a written order from the monarch. It gave the East India Company the sole right to English trade with the East, so no other English company could compete.

Why were trading posts, sometimes called factories, important to the East India Company?

Trading posts were warehouses and offices on the coast where goods were stored and traded. They later grew into forts and towns, which gave the Company safe bases inside India.

How did the East India Company first get permission to trade in India?

Company officials asked the Mughal emperor for permission. He granted them the right to trade and build warehouses in some ports in return for taxes, gifts and respect.

How did the decline of the Mughal Empire help the East India Company gain control?

After 1700 the Mughal Empire grew weaker and many local rulers fought each other. The Company used this chaos to make deals with rulers and to step in as a new source of power.

Why did the East India Company build forts and raise its own army?

At first it did this to protect its trading posts from rival European powers and local rulers. Later it used its army to force Indian rulers to accept Company demands.

Who were sepoys and why were they important to Company control?

Sepoys were Indian soldiers trained and led by British officers in the Company’s army. They made up most of the troops, so the Company could control large areas without many British soldiers.

How did the East India Company use treaties and alliances to gain power?

It offered protection and modern weapons to Indian rulers. In return, those rulers gave the Company special trading rights, money or control over parts of their kingdoms.

Why did control of Bengal strengthen the East India Company?

Bengal was one of the richest parts of India, with valuable textile trade and fertile land. Control there gave the Company huge profits and tax income to pay for more soldiers and expansion.

By around 1800, how had the East India Company changed from its original role?

It had changed from a trading business into a ruling power. It now controlled land, collected taxes and made laws over millions of people in India, a system called Company rule.