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Company rule in India

 This article is part of the 
History of South Asia series.
 Indus Valley civilization
 Vedic civilization
 Middle kingdoms of India
 Islamic Empires in India
 Mogul Era
 Company rule in India
 British Raj
 Indian independence movement

Table of contents
1 Company Rule, 1757-1857
2 References

Company Rule, 1757-1857

Expansion and territory

It was not until the middle of the 19th century that almost all of the territory that constitutes Pakistan and India came under the rule of the British East India Company. The patterns of territorial acquisition and rule as applied by the company in Sindh and Punjab and the manner of governance became the basis for direct British rule in the British Indian Empire and indirect rule in the princely states under the paramountcy of the Crown.

Although the British had earlier ruled in the factory areas, the beginning of British rule is often dated from the Battle of Plassey. Robert Clive's victory was consolidated in 1764 at the Battle of Buxar (in Bihar), where the emperor, Shah Alam II, was defeated. As a result, Shah Alam was coerced to appoint the company to be the diwan (collector of revenue) for the areas of Bengal, Bihar, and Orissa (this pretense of Mughal control was abandoned in 1827). The company thus became the supreme, but not the titular, power in much of the Ganges Valley, and company agents continued to trade on terms highly favorable to them.

The area controlled by the company expanded during the first three decades of the 19th century by two methods. The first was the use of subsidiary agreements (sanad) between the British and the local rulers, under which control of foreign affairs, defense, and communications was transferred from the ruler to the company and the rulers were allowed to rule as they wished (up to a limit) on other matters. This development created what came to be called the Native States, or Princely India, that is, the world of the maharaja and his Muslim counterpart the nawab. The second method was outright military conquest or direct annexation of territories; it was these areas that were properly called British India. Most of northern India was annexed by the British.

At the start of the 19th century, most of present-day Pakistan was under independent rulers. Sindh was ruled by the Muslim Talpur mirs (chiefs) in three small states that were annexed by the British in 1843. In Punjab, the decline of the Mughal Empire allowed the rise of the Sikhs, first as a military force and later as a political administration in Lahore. The kingdom of Lahore was at its most powerful and expansive during the rule of Maharaja Ranjit Singh, when Sikh control was extended beyond Peshawar, and Kashmir was added to his dominions in 1819. After Ranjit Singh died in 1839, political conditions in Punjab deteriorated, and the British fought two wars with the Sikhs. The second of these wars, in 1849, saw the annexation of Punjab, including the present-day North-West Frontier Province, to the company's territories. Kashmir was transferred by sale in the Treaty of Amritsar in 1850 to the Dogra Dynasty, which ruled the area under British paramountcy until 1947.

As the British increased their territory in India, so did Russia expand in Central Asia. The East India Company signed treaties with a number of Afghan rulers and with Ranjit Singh. Russia backed Persian ambitions in western Afghanistan. In 1838 the Company's actions bought about the First Afghan War (1838- 42). Assisted by Sikh allies, the company took Kandahar and Kabul and made its own candidate amir. The amir proved unpopular with the Afghans, however, and the British garrison's position became untenable. The retreat of the British from Kabul in January 1842 was one of the worst disasters in British military history, as a column of more than 16,000 (about one-third soldiers, the rest camp followers) was annihilated by Afghan tribesmen as they struggled through the snowbound passes on their way back to India. The British later sent a punitive expedition to Kabul, which it burned in retribution, but made no attempt to reoccupy Afghanistan.

In Punjab, annexed in 1849, a group of extraordinarily able British officers, serving first the Company and then the British Crown, governed the area. They avoided the administrative mistakes made earlier in Bengal. A number of reforms were introduced, although local customs were generally respected. Irrigation projects later in the century helped Punjab become the granary of northern India. The respect gained by the new administration could be gauged by the fact that within ten years Punjabi troops were fighting for the British elsewhere in India to subdue the uprising of 1857-1858. Punjab was to become the major recruiting area for the British Indian Army, recruiting both Sikhs and Muslims.


A multiplicity of motives underlay the British penetration into India: commerce, security, and a purported moral uplift of the people. The "expansive force" of private and company trade eventually led to the conquest or annexation of territories in which spices, cotton, and opium were produced. British investors ventured into the unfamiliar interior landscape in search of opportunities that promised substantial profits. British economic penetration was aided by Indian collaborators, such as the bankers and merchants who controlled intricate credit networks. British rule in India would have been a frustrated or half-realized dream had not Indian counterparts provided connections between rural and urban centers. External threats, both real and imagined, such as the Napoleonic Wars (1796-1815) and Russian expansion toward Afghanistan (in the 1830s), as well as the desire for internal stability, led to the annexation of more territory in India. Political analysts in Britain wavered initially as they were uncertain of the costs or the advantages in undertaking wars in India, but by the 1810s, as the territorial aggrandizement eventually paid off, opinion in London welcomed the absorption of new areas. Occasionally the British Parliament witnessed heated debates against expansion, but arguments justifying military operations for security reasons always won over even the most vehement critics.

The British soon forgot their own rivalry with the Portuguese and the French and permitted them to stay in their coastal enclaves, which they kept even after independence in 1947. The British, however, continued to expand vigorously well into the 1850s. A number of aggressive governors-general undertook relentless campaigns against several Hindu and Muslim rulers. Among them were Richard Wellesley, 1st Marquess Wellesley (1798-1805), William Pitt Amherst (1823-1828), George Eden, 1st Earl of Auckland (1836-1842), Edward Law, 1st Earl of Ellenborough (1842-1844), and James Andrew Brown Ramsay, 11th Earl of Dalhousie (1848-1856; also known as the Marquess of Dalhousie). Despite desperate efforts at salvaging their tottering power and keeping the British at bay, many Hindu and Muslim rulers lost their territories: Mysore (1799, but later restored), the Maratha Confederacy (1818), and Punjab (1849). The British success in large measure was the result not only of their superiority in tactics and weapons but also of their ingenious relations with Indian rulers through the "subsidiary alliance" system, introduced in the early 19th century. Many rulers bartered away their real responsibilities by agreeing to uphold British paramountcy in India, while they retained a fictional sovereignty under the rubric of Pax Britannica. Later, Dalhousie espoused the "doctrine of lapse" and annexed outright the estates of deceased princes of Satara (1848), Udaipur (1852), Jhansi (1853), Tanjore (1853), Nagpur (1854), and Oudh (1856).

European perceptions of India, and those of the British especially, shifted from unequivocal appreciation to sweeping condemnation of India's past achievements and customs. Imbued with an ethnocentric sense of superiority, British intellectuals, including Christian missionaries, spearheaded a movement that sought to bring Western intellectual and technological innovations to Indians. Interpretations of the causes of India's cultural and spiritual "backwardness" varied, as did the solutions. Many argued that it was Europe's mission to civilize India and hold it as a trust until Indians proved themselves competent for self-rule. The immediate consequence of this sense of superiority was to open India to more aggressive missionary activity. The contributions of three missionaries based in Serampore (a Danish enclave in Bengal) - William Carey, Joshua Marshman, and William Ward - remained unequaled and have provided inspiration for future generations of their successors.


The British Parliament enacted a series of laws, among which the Regulating Act of 1773 stood first, to curb the company traders' unrestrained commercial activities and to bring about some order in territories under company control. Limiting the company charter to periods of twenty years, subject to review upon renewal, the 1773 act gave the British government supervisory rights over the Bengal, Bombay, and Madras presidencies. Bengal was given preeminence over the rest because of its enormous commercial vitality and because it was the seat of British power in India (at Calcutta), whose governor was elevated to the new position of governor-general. Warren Hastings was the first incumbent (1773-1785). The India Act of 1784 sometimes described as the "half-loaf system," as it sought to mediate between Parliament and the company directors, enhanced Parliament's control by establishing the Board of Control, whose members were selected from the cabinet. The Charter Act of 1813 recognized British moral responsibility by introducing just and humane laws in India, foreshadowing future social legislation, and outlawing a number of traditional practices such as sati and thagi (or thugee, robbery coupled with ritual murder).

As governor-general from 1786 to 1793, Charles Cornwallis (the Marquis of Cornwallis), professionalized, bureaucratized, and Europeanized the company's administration. He also outlawed private trade by company employees, separated the commercial and administrative functions, and remunerated company servants with generous graduated salaries. Because revenue collection became the company's most essential administrative function, Cornwallis made a compact with Bengali zamindars, who were perceived as the Indian counterparts to the British landed gentry. The Permanent Settlement system, also known as the zamindari system, fixed taxes in perpetuity in return for ownership of large estates; but the state was excluded from agricultural expansion, which came under the purview of the zamindars. In Madras and Bombay, however, the ryotwari (peasant) settlement system was set in motion, in which peasant cultivators had to pay annual taxes directly to the government.

Neither the zamindari nor the ryotwari systems proved effective in the long run because India was integrated into an international economic and pricing system over which it had no control, while increasing numbers of people subsisted on agriculture for lack of other employment. Millions of people involved in the heavily taxed Indian textile industry also lost their markets, as they were unable to compete successfully with cheaper textiles produced in Lancashire's mills from Indian raw materials.

Beginning with the Mayor's Court, established in 1727 for civil litigation in Bombay, Calcutta, and Madras, justice in the interior came under the company's jurisdiction. In 1772 an elaborate judicial system, known as adalat, established civil and criminal jurisdictions along with a complex set of codes or rules of procedure and evidence. Both Hindu pandits and Muslim qazis (sharia court judges) were recruited to aid the presiding judges in interpreting their customary laws, but in other instances, British common and statutory laws became applicable. In extraordinary situations where none of these systems was applicable, the judges were enjoined to adjudicate on the basis of "justice, equity, and good conscience." The legal profession provided numerous opportunities for educated and talented Indians who were unable to secure positions in the company, and, as a result, Indian lawyers later dominated nationalist politics and reform movements.

Education for the most part was left to the charge of Indians or to private agents who imparted instruction in the vernaculars. But in 1813, the British became convinced of their "duty" to awaken the Indians from intellectual slumber by exposing them to British literary traditions, earmarking a paltry sum for the cause. Controversy between two groups of Europeans - the "Orientalists" and "Anglicists" - over how the money was to be spent prevented them from formulating any consistent policy until 1835 when William Cavendish Bentinck, the governor-general from 1828 to 1835, finally broke the impasse by resolving to introduce the English language as the medium of instruction. English replaced Persian in public administration and education.

The company's education policies in the 1830s tended to reinforce existing lines of socioeconomic division in society rather than bringing general liberation from ignorance and superstition. Whereas the Hindu English-educated minority spearheaded many social and religious reforms either in direct response to government policies or in reaction to them, Muslims as a group initially failed to do so, a position they endeavored to reverse. Western-educated Hindu elites sought to rid Hinduism of its much criticized social evils: idolatry, the caste system, child marriage, and sati. Religious and social activist Ram Mohan Roy (1772-1833), who founded the Brahmo Samaj (Society of Brahma) in 1828, displayed a readiness to synthesize themes taken from Christianity, Deism, and Indian monism, while other individuals in Bombay and Madras initiated literary and debating societies that gave them a forum for open discourse. The exemplary educational attainments and skillful use of the press by these early reformers enhanced the possibility of effecting broad reforms without compromising societal values or religious practices.

The 1850s witnessed the introduction of the three "engines of social improvement" that heightened the British illusion of permanence in India. They were the railroads, the telegraph, and the uniform postal service, inaugurated during the tenure of Dalhousie as governor-general. The first railroad lines were built in 1850 from Howrah (Haora, across the Hughli River from Calcutta) inland to the coalfields at Raniganj, Bihar, a distance of 240 kilometers. In 1851 the first electric telegraph line was laid in Bengal and soon linked Agra, Bombay, Calcutta, Lahore, Varanasi, and other cities. The three different presidency or regional postal systems merged in 1854 to facilitate uniform methods of communication at an all-India level. With uniform postal rates for letters and newspapers - one-half anna and one anna, respectively (sixteen annas equalled one rupee) - communication between the rural and the metropolitan areas became easier and faster. The increased ease of communication and the opening of highways and waterways accelerated the movement of troops, the transportation of raw materials and goods to and from the interior, and the exchange of commercial information.

The railroads did not break down the social or cultural distances between various groups but tended to create new categories in travel. Separate compartments in the trains were reserved exclusively for the ruling class, separating the educated and wealthy from ordinary people. Similarly, when the Sepoy Rebellion was quelled in 1858, a British official exclaimed that "the telegraph saved India." He envisaged, of course, that British interests in India would continue indefinitely.