East India Company, British
interlopers.In 1698 a rival company was actually chartered, but the conflict was resolved by a merger of the two companies in 1708. By that time the company had established in India the three presidencies of Madras (now Chennai), Bombay (now Mumbai), and Calcutta (now Kolkata). As Mughal power declined, these settlements became subject to increasing harassment by local princes, and the company began to protect itself by intervening more and more in Indian political affairs. It had, moreover, a serious rival in the French East India Company, which under Joseph François Dupleix launched an aggressive policy of expansion. The victories (1751–60) of Robert Clive over the French made the company dominant in India, and by a treaty of 1765 it assumed control of the administration of Bengal. Revenues from Bengal were used for trade and for personal enrichment. To check the exploitative practices of the company and to gain a share of revenues, the British government intervened and passed the Regulating Act (1773), by which a governor-general of Bengal (whose appointment was subject to government approval) was given charge of all the company's possessions in India. Warren Hastings , the first governor-general, laid the administrative foundations for subsequent British consolidation. By the East India Act of 1784 the government assumed more direct responsibility for British activities in India, setting up a board of control for India. The company continued to control commercial policy and lesser administration, but the British government became increasingly the effective ruler of India. Parliamentary acts of 1813 and 1833 ended the company's trade monopoly. Finally, after the Indian Mutiny of 1857–58 the government assumed direct control, and the East India Company was dissolved.
See studies by B. Willson (1903), H. Furber (1948, repr. 1970), L. Sutherland (1952), and B. Gardner (1972); D. Gilmour, The Ruling Caste (2006).
The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.
See more Encyclopedia articles on: British and Irish History