Traders to Rulers ICSE Class 8: How the East India Company Gained Power

What Traders to Rulers is about

Weightage: CISCE publishes no question paper, marking scheme or chapter weightage for Class VIII History and Civics: your school sets and marks the exam. Traders to Rulers sits in the History: Traders to Rulers section of the CISCE Curriculum for Upper Primary Classes (VI-VIII).Source: CISCE Curriculum for Upper Primary Classes (VI-VIII), RDCD 2016

Key concepts

Advent of the English East India Company (brief)

• Charter: Queen Elizabeth I granted the Company a charter on 31 December 1600, giving it the sole right among English merchants to trade with the East.
• Factories: the Company set up trading posts called factories (warehouses with offices). Its first permanent factory was at Surat (1613).
• Main settlements: Madras (Fort St George), Bombay (acquired from the English Crown in 1668) and Calcutta (founded in 1690, later protected by Fort William) became its three major centres, later called presidencies.
• Trade privileges: in 1717 the Mughal emperor Farrukhsiyar granted the Company the right to trade in Bengal without paying duties. Company officials issued passes called dastaks for this.
• Rivals: the Portuguese, the Dutch and the French also traded in India. The English defeated the French in the Carnatic Wars in south India in the mid-18th century.

Worked example

(2 marks) What was the farman of 1717? Why did it cause conflict in Bengal?

Try it first, then show the solutionSolution

1. A royal order of Emperor Farrukhsiyar allowing the Company to trade duty-free in Bengal - 1 mark.
2. Company officials misused the dastaks for their private trade, so the nawab lost revenue - 1 mark.

Answer: The farman of 1717, issued by Emperor Farrukhsiyar, allowed the Company to trade in Bengal without paying customs duties. Company officials misused the passes (dastaks) for their own private trade too, causing the nawab of Bengal heavy losses of revenue and leading to conflict.

The Battle of Plassey (1757): causes

Siraj-ud-daula became nawab of Bengal in 1756 after his grandfather Alivardi Khan. His quarrels with the Company had several causes:
1. Misuse of dastaks: Company officials used duty-free passes for private trade, causing the nawab losses.
2. Fortification of Calcutta: the Company strengthened its fort at Calcutta without the nawab's permission, to prepare for war with the French.
3. Shelter to the nawab's enemies: the Company gave refuge to people who had offended the nawab and supported his rivals at court.
4. Capture of Calcutta (1756): Siraj marched on Calcutta and captured Fort William. Many English prisoners died after being locked in a small room, an event the British called the 'Black Hole'; the numbers are disputed by historians.
5. Conspiracy: Robert Clive recaptured Calcutta and plotted with Mir Jafar, the nawab's commander-in-chief, promising to make him nawab.
The battle: on 23 June 1757 at Plassey, Clive's small army defeated Siraj, mainly because Mir Jafar's large force did not fight. Siraj fled and was killed.

Worked example

(3 marks) State three causes of the Battle of Plassey.

Try it first, then show the solutionSolution

1. Misuse of dastaks by Company officials - 1 mark.
2. Fortification of Calcutta without the nawab's permission - 1 mark.
3. Shelter to the nawab's enemies / Siraj's capture of Calcutta / Clive's conspiracy with Mir Jafar - 1 mark.

Answer: (1) Company officials misused duty-free dastaks for private trade, reducing the nawab's revenue. (2) The Company fortified Calcutta without the nawab's permission. (3) It sheltered Siraj-ud-daula's enemies, and after Siraj captured Calcutta, Clive conspired with Mir Jafar to overthrow him.

Results of Plassey

1. Mir Jafar became nawab, but he depended on the Company.
2. The Company received the zamindari of the 24 Parganas near Calcutta and large sums of money; Company officials received huge personal gifts.
3. The Company obtained the right to free trade in Bengal, Bihar and Orissa, and the French were pushed out of Bengal.
4. Political importance: Plassey was a small battle militarily, but it made the Company the real power in Bengal. Historians see it as the beginning of British political power in India.
5. Wealth from Bengal helped the Company fight its wars elsewhere in India.
When Mir Jafar could not meet the Company's demands, it replaced him with his son-in-law, Mir Qasim (1760).

Worked example

(2 marks) Why is the Battle of Plassey regarded as a turning point though it was a small battle?

Try it first, then show the solutionSolution

1. It was won more by Mir Jafar's betrayal than by fighting - 1 mark.
2. But it made the Company the real power in Bengal and began British political rule in India - 1 mark.

Answer: Plassey involved little actual fighting because Mir Jafar's troops stood aside, but it put a puppet nawab in power and made the Company the real master of Bengal, marking the start of British political power in India.

The Battle of Buxar (1764): causes and results

Causes:
1. Mir Qasim wanted to be an independent ruler. He moved his capital from Murshidabad to Munger, reorganised his army and finances.
2. Dispute over trade: the Company's officials continued to misuse dastaks. Mir Qasim then abolished internal duties for all traders, so Indian merchants could compete equally. The Company was angered.
3. War broke out; defeated in Bengal, Mir Qasim formed an alliance with Shuja-ud-daula, nawab of Awadh, and the Mughal emperor Shah Alam II.
The battle: on 22 October 1764 the Company's army under Major Hector Munro defeated the allied forces at Buxar (in Bihar).
Results:
1. Treaty of Allahabad (1765), negotiated by Clive: Shah Alam II granted the Company the diwani (right to collect revenue) of Bengal, Bihar and Orissa, in return for an annual payment of 26 lakh rupees.
2. Shuja-ud-daula paid a war indemnity and became an ally of the Company; Awadh became a buffer state.
3. Buxar was a real military victory over the combined forces of the nawab of Bengal, the nawab of Awadh and the Mughal emperor, so it confirmed the Company's power more firmly than Plassey.

Worked example

(3 marks) Why is the Battle of Buxar considered more important than the Battle of Plassey?

Try it first, then show the solutionSolution

1. Plassey was won largely by conspiracy; Buxar was a genuine military victory - 1 mark.
2. At Buxar the Company defeated the combined forces of Bengal, Awadh and the Mughal emperor - 1 mark.
3. It led to the grant of the diwani of Bengal, Bihar and Orissa (1765) - 1 mark.

Answer: Plassey was won mainly through Mir Jafar's betrayal, but Buxar was a real battle in which the Company defeated the combined armies of Mir Qasim, the nawab of Awadh and the Mughal emperor. The victory brought the diwani of Bengal, Bihar and Orissa by the Treaty of Allahabad (1765), giving the Company legal control of the province's revenue.

The dual government in Bengal and its drawbacks

After 1765, Robert Clive set up the dual (double) system of government in Bengal:

• The Company held the diwani: the right to collect revenue.
• The nawab kept the nizamat: responsibility for administration, law and order, and justice. But the nawab depended on the Company for money and troops.

Drawbacks:
1. Power without responsibility: the Company had money and real power but took no responsibility for governing; the nawab had responsibility but no power or money.
2. Breakdown of administration: law and order collapsed; officials were corrupt.
3. Exploitation of peasants: revenue collectors squeezed the maximum from cultivators.
4. Ruin of trade and crafts: Company servants forced weavers to sell to them at low prices.
5. The famine of 1770: a terrible famine struck Bengal, and millions died, while revenue collection continued.
End: the dual government was abolished in 1772 by Warren Hastings, when the Company took direct charge of administration.

Worked example

(4 marks) What was the dual government in Bengal? State three drawbacks.

Try it first, then show the solutionSolution

1. Company had diwani (revenue); nawab had nizamat (administration) - 1 mark.
2. Drawback: power without responsibility - 1 mark.
3. Drawback: corruption and breakdown of law and order - 1 mark.
4. Drawback: exploitation of peasants and weavers; famine of 1770 - 1 mark.

Answer: Under the dual government set up by Clive after 1765, the Company collected revenue (diwani) while the nawab was responsible for administration and justice (nizamat). Its drawbacks were: (1) the Company had power without responsibility and the nawab responsibility without power; (2) administration broke down and officials became corrupt; (3) peasants and weavers were ruthlessly exploited, and the famine of 1770 killed millions.

Policy of British expansion

Meaning: the methods by which the Company extended its territory and control over Indian states, by war or by diplomatic and legal devices.

1. Subsidiary alliance (Lord Wellesley, Governor-General 1798-1805). An Indian ruler who accepted it had to:

• keep a British force in his territory and pay for it (a subsidy, or by giving up territory);
• accept a British Resident at his court;
• make no war or agreement with other rulers without the Company's permission;
• expel other Europeans, especially the French, from his service.

In return, the Company promised to protect him. Examples: Hyderabad (1798) was the first to accept; Awadh had to give up about half its territory (1801); the Peshwa signed the Treaty of Bassein (1802). Tipu Sultan refused and was defeated.

2. Doctrine of lapse (Lord Dalhousie, Governor-General 1848-1856): if the ruler of a dependent state died without a natural male heir, his kingdom would 'lapse', that is, pass to the Company; an adopted son could not inherit the kingdom. States annexed: Satara (1848), Sambalpur (1850), Udaipur in central India (1852), Nagpur (1853) and Jhansi (1854).

3. Annexation of Awadh (1856): Awadh had been a loyal ally. Dalhousie annexed it on the pretext of misgovernment, claiming that the people needed to be freed from bad rule. Nawab Wajid Ali Shah was removed and sent to Calcutta. The real reasons were Awadh's rich land and revenue and its value as a market for British goods.

Worked example

(3 marks) What was the doctrine of lapse? Name two states annexed under it.

Try it first, then show the solutionSolution

1. Introduced by Lord Dalhousie - 1 mark.
2. If a ruler died without a natural male heir, the state passed to the Company; adopted sons could not inherit - 1 mark.
3. Examples: Satara, Jhansi, Nagpur (any two) - 1 mark.

Answer: The doctrine of lapse, introduced by Lord Dalhousie, declared that if the ruler of a dependent state died without a natural male heir, his kingdom would pass to the Company, and an adopted son could not inherit it. Satara (1848) and Jhansi (1854) were annexed under it.

Traders to Rulers in real life

Each concept, met in an everyday situation. Read the situation, answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Topics in this chapter

• Plassey, Buxar, Dual Government and British Expansion in India

Traders to Rulers: key facts

Company's arrival

Charter 31 December 1600; Surat factory 1613; Bombay 1668; Calcutta 1690; farman of 1717

Brief mention only.

Plassey

23 June 1757: Clive versus Siraj-ud-daula; Mir Jafar's betrayal

Mir Jafar nawab; Mir Qasim from 1760.

Buxar

22 October 1764: Hector Munro versus Mir Qasim, Shuja-ud-daula and Shah Alam II

Treaty of Allahabad 1765: diwani of Bengal, Bihar and Orissa.

Dual government

1765-1772: Company = diwani (revenue); nawab = nizamat (administration)

Famine 1770; ended by Warren Hastings 1772.

Expansion policies

Subsidiary alliance: Wellesley (1798-1805); doctrine of lapse: Dalhousie (1848-1856); Awadh annexed 1856

Lapse: Satara 1848, Sambalpur 1850, Udaipur 1852, Nagpur 1853, Jhansi 1854.

How the school exam asks Traders to Rulers

The question patterns to expect, and the method that works for each.

Tricks to remember Traders to Rulers

Short memory aids. Say each one aloud once, then use it on a question the same day.

• Plassey vs Buxar

  'Plassey was Plotted, Buxar was Battled.'

  Use it when: Why Buxar mattered more.

• Subsidiary alliance terms: T-R-A-F

  Troops paid for, Resident at court, Alliances need permission, French expelled.

  Use it when: The four conditions.

• Lapse states in date order

  'Some Silly Uncles Never Jump': Satara 1848, Sambalpur 1850, Udaipur 1852, Nagpur 1853, Jhansi 1854.

  Use it when: Examples of the doctrine of lapse.

Traders to Rulers: exam-level solved questions

Ordered from exam level to HOTS. Cover the solution, write your own, then compare step by step.

Case-study practice (Section B style)

Read the situation, then answer every part. In a school exam set on the board pattern this is a 8-mark question split into 3 + 2 + 3 marks.

Where the marks are

How a typical answer is split into step marks. Show every step: a right final answer alone rarely earns full marks.

Where students lose marks in Traders to Rulers

The slips examiners see most often, and what to write instead.

• ✗Mistake: Writing that Clive won Buxar

  Clive is linked with Plassey and the diwani.

  ✓Do this: Buxar (1764): Hector Munro. Clive negotiated the Treaty of Allahabad (1765).

  Usually costs: 1 mark.

• ✗Mistake: Mixing up Wellesley and Dalhousie

  Both expanded British territory.

  ✓Do this: Wellesley = subsidiary alliance (1798-1805). Dalhousie = doctrine of lapse and Awadh (1848-1856).

  Usually costs: 1 mark.

• ✗Mistake: Saying Awadh was annexed under the doctrine of lapse

  Awadh was annexed in Dalhousie's time too.

  ✓Do this: Awadh was annexed on the pretext of misgovernment.

  Usually costs: 1 mark.

• ✗Mistake: Describing the dual government without naming the drawback 'power without responsibility'

  Students list effects but miss the main flaw.

  ✓Do this: State the flaw first, then its effects.

  Usually costs: 1 mark.

Practice questions on Traders to Rulers

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

1. Q1 · 1 mark · MCQExam level

   The subsidiary alliance was introduced by:
   (a) Lord Dalhousie
   (b) Lord Wellesley
   (c) Warren Hastings
   (d) Lord Cornwallis

   Hint

   Governor-General 1798-1805.

   Answer

   (b) Lord Wellesley.

2. Q2 · 1 mark · MCQHarder exam level

   Which was the first state to accept the subsidiary alliance?
   (a) Awadh
   (b) Mysore
   (c) Hyderabad
   (d) Satara

   Hint

   1798, in the Deccan.

   Answer

   (c) Hyderabad.

3. Q3 · 1 mark · Very short answerExam level

   Who was the last nawab of Awadh before its annexation?

   Hint

   Sent to Calcutta.

   Answer

   Wajid Ali Shah.

4. Q4 · 1 mark · Very short answerExam level

   What was a 'factory' of the East India Company?

   Hint

   Not a place of manufacture.

   Answer

   A trading post with warehouses and offices where goods were stored and Company officials (factors) worked.

5. Q5 · 2 marks · Very short answerHarder exam level

   What was the Treaty of Bassein (1802)?

   Hint

   The Peshwa.

   Answer

   The treaty by which the Maratha Peshwa, Baji Rao II, accepted the subsidiary alliance with the Company.

6. Q6 · 2 marks · Very short answerExam level

   Distinguish between diwani and nizamat.

   Hint

   Revenue and administration.

   Answer

   Diwani was the right to collect land revenue; nizamat was the responsibility for administration, law and order and justice.

7. Q7 · 2 marks · Very short answerHarder exam level

   Why did Mir Jafar lose the Company's favour?

   Hint

   Money.

   Answer

   He could not meet the Company's constant demands for money, so in 1760 it replaced him with his son-in-law Mir Qasim.

8. Q8 · 3 marks · Short answerHarder exam level

   Why did the doctrine of lapse cause anger among Indian rulers?

   Hint

   Adoption.

   Answer

   Adoption was an accepted custom for continuing a ruling family. By refusing to recognise adopted sons as heirs to kingdoms, the Company seized states such as Satara, Nagpur and Jhansi, making rulers feel insecure and humiliated, which added to the discontent behind the 1857 uprising.

9. Q9 · 3 marks · Short answerHOTS / competency

   How did the wealth of Bengal help the Company conquer the rest of India?

   Hint

   Revenue pays armies.

   Answer

   The revenue of Bengal, Bihar and Orissa after 1765 gave the Company a large, steady income. It used this money to maintain a big army of Indian soldiers (sepoys) and to fight wars against Mysore, the Marathas and others, so Bengal's wealth financed further conquest.

10. Q10 · 4 marks · Long answerHOTS / competency

    Compare the subsidiary alliance and the doctrine of lapse as methods of expansion.

    Hint

    Control versus annexation.

    Answer

    The subsidiary alliance (Wellesley) brought states under Company control without removing their rulers: the ruler stayed but paid for British troops, accepted a Resident and lost control of foreign policy. The doctrine of lapse (Dalhousie) directly annexed states when a ruler died without a natural male heir, ending the ruling family's rule. The first created dependent states; the second took them over completely.

11. Q11 · 1 mark · Very short answerExam level

    Name the Governor of Bengal who abolished the dual government, and the year.

    Hint

    He became the first Governor-General of Bengal in 1774.

    Answer

    Warren Hastings, 1772.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1. 1.Who granted the Company its charter?Show answer

   Queen Elizabeth I (31 December 1600).

2. 2.When was the Battle of Plassey fought?Show answer

   23 June 1757.

3. 3.Who betrayed Siraj-ud-daula at Plassey?Show answer

   Mir Jafar.

4. 4.Which treaty gave the Company the diwani?Show answer

   The Treaty of Allahabad, 1765.

5. 5.When was Jhansi annexed?Show answer

   1854, under the doctrine of lapse.

6. 6.When was Awadh annexed?Show answer

   1856.

Quick revision checklist

The night before the exam: can you do each of these without looking?

• ☐Company: charter 1600; Surat 1613; Bombay 1668; Calcutta 1690; duty-free farman 1717 (dastaks).
• ☐Plassey (23 June 1757): causes - dastak misuse, fortification, shelter to enemies, Calcutta captured; Clive and Mir Jafar's betrayal; results - Mir Jafar nawab, 24 Parganas, wealth, start of British power.
• ☐Buxar (22 October 1764): Mir Qasim, Shuja-ud-daula, Shah Alam II defeated by Munro; Treaty of Allahabad 1765: diwani of Bengal, Bihar, Orissa.
• ☐Dual government 1765-1772: Company diwani, nawab nizamat; power without responsibility, corruption, exploitation, famine 1770; ended by Hastings.
• ☐Subsidiary alliance (Wellesley): pay for troops, Resident, no alliances, expel French; Hyderabad 1798, Awadh 1801, Peshwa 1802.
• ☐Doctrine of lapse (Dalhousie): no natural heir, state lapses; Satara, Sambalpur, Udaipur, Nagpur, Jhansi. Awadh 1856: pretext of misgovernment.

Traders to Rulers: frequently asked questions