FROM TRADE TO TERRITORY: THE COMPANY ESTABLISHES POWER
Aurangzeb’s reign marked the zenith of Mughal power, but after his death in 1707, the empire began to crumble. The weakening central power gave way to the rise of various regional powers, who were erstwhile governors (subadars) or influential zamindars. This created a political vacuum and instability which foreign powers, such as the British, could exploit.
The East India Company was initially established in 1600 as a trading entity. The British Crown gave it exclusive rights to trade with the East. This meant that within Britain, the Company had a monopoly. However, they faced competition internationally, especially in the Indian subcontinent, which was already a trading hotspot for the Portuguese, Dutch, and later, the French.
India was known for its rich textiles (cotton and silk) and spices (pepper, cloves, cardamom, cinnamon). These were in high demand in Europe, making the Indian subcontinent a lucrative market for European powers.
To maximise profits and eliminate competition, European companies, including the East India Company, often resorted to aggressive tactics like ship blockades, sinking rivals’ ships, and establishing fortified settlements. This militarised trade made the boundaries between trade and politics blurry.