India’s rich history is intricately intertwined with the interactions between indigenous rulers and European trading companies. From the early encounters with Portuguese explorers to the establishment of British colonial rule, the dynamics between Indian rulers and European companies shaped the socio-political landscape of the subcontinent.
The arrival of European companies, starting with the Portuguese in the late 15th century, marked the beginning of a new era of trade and exchange. These companies, driven by commercial interests, sought to capitalize on India’s lucrative markets and abundant resources. However, their presence soon evolved beyond mere trade, influencing the political and administrative structures of the region.
The Mughal Emperors and other Indian rulers were interested in developing overseas trade because it would bring in more money. Even though they weren’t strong at sea, they needed to make sure their ships could sail smoothly. To do this, they had to make friends with powerful European nations who controlled the seas. When the Mughals were powerful, European merchants would ask nicely for concessions and presents. But as the Mughal Empire weakened, European companies started forcing Indian rulers to give them exclusive rights and special deals, taking advantage of internal conflicts.
Dutch
Dutch got permission from the rulers of Golkunda to trade by paying a 4% customs duty on their goods. They were also allowed to trade without paying duty on cloth. But even though they had these concessions, local officials often tried to make things difficult for them by imposing extra taxes. Sometimes, clashes even broke out between the Dutch and local officials.
In 1686, the Dutch had to fight against the minister of Golkunda, Akanna. After a two-month siege, Golkunda had to agree to give back all the privileges they had before. In 1690, the Nayak of Tanjore let the Dutch pay only half the tolls in his kingdom and allowed them to keep other Europeans out of the ports. The Dutch also got permission to mint coins in certain places.
They also got permission to trade along the west coast from the Mughal Emperor Jahangir, who exempted them from tolls along certain routes. Other Mughal rulers like Shah Jahan and Aurangzeb also gave them privileges, like exempting them from transit duties and reducing customs duty rates. However, local officials sometimes made it hard for the Dutch to enjoy these privileges, and they often had to spend a lot of money to keep things running smoothly. Sometimes, they even misused their privileges by helping Indian merchants avoid paying customs duties.
Overall, the Dutch faced many challenges and conflicts while trying to trade in India, despite having concessions from Indian rulers and the Mughal Empire.
English
During Jahangir’s rule, the first English envoy arrived at the Mughal court in 1607 and received a royal order. In 1608, the English set up their first trading post in Surat, and Captain Hawkins was sent to Jahangir’s court to secure trade deals. Initially, Jahangir welcomed the English, but later, under Portuguese influence, he expelled them from Agra. This led to armed conflicts between the English and Portuguese at Swally near Surat in 1612 and 1614. Eventually, the Mughals decided to align with the English to counter Portuguese naval power and to benefit Indian merchants. Captain Best obtained a royal order in 1613 to establish factories along the west coast.
In 1615, Sir Thomas Roe went to Jahangir’s court and took advantage of the troubles faced by Indian traders due to harassment on the seas. This led to another royal order granting the English the right to set up factories throughout the Mughal Empire. This success sparked a conflict between the English and Portuguese from 1620 to 1630, resulting in the Portuguese losing most of their Indian possessions.
However, during Jahangir’s later years, when the English tried to fortify their factory in Surat, they were imprisoned by Mughal officers. In 1651, the English East India Company received a royal order from Sultan Shuja of Bengal, granting them trading privileges for an annual payment. Despite some setbacks, the English managed to maintain trade relations with the Mughals, particularly during Aurangzeb’s reign, though they faced occasional conflicts and had to pay compensation.
By the late 1600s and early 1700s, the English were able to secure various concessions from the Mughal rulers, including exemption from custom duties in certain regions. However, the departure of vigilant governors like Murshid Quli Khan and Ali Vardi Khan from Bengal in the 1750s allowed the East India Company to exploit the situation and eventually defeat the Nawab of Bengal at the Battle of Plassey in 1757.
The rulers of Golkunda also maintained friendly relations with the English Company, granting them permission to trade freely in ports belonging to Golkunda in exchange for a fixed payment, which greatly benefited English trade in the Coromandel region.
French
As early as 1677, the French encountered the Marathas, led by Shivaji, who demanded payment for a trading license. French commander Martin agreed and paid Shivaji, promising not to join military operations against him. In 1689, the French were allowed to fortify Pondicherry by Bambhaji. They also received permission from Aurangzeb in 1667 to establish their factory in Surat. Additionally, Aurangzeb gave Chandranagore village to the French in 1688.
The French maintained close ties with Dost-Ali, the Nawab of Carnatic. Upon his recommendation, Emperor Muhammad Shah issued a royal order allowing the French to mint currency bearing the emperor’s stamp.
In 1738, a civil war erupted in Tanjore, and one claimant to the throne sought the French governor’s help, offering Karikal and Kirkangarhi in return. The French agreed but faced challenges when the promised territory wasn’t ceded as agreed. Chanda Sahib, seeking French aid, offered them these territories in exchange for help against the Marathas. Impressed by the French resistance against the Marathas, Muhammad Shah granted the French governor the title of Nawab and a high rank.
However, French involvement in South Indian principalities ultimately led to conflicts known as the Carnatic wars, resulting in the defeat of the French.
Read about Advent of English in India.