Progress of the English Company in the Seventeenth Century
Modern History › Advent of the Europeans in India · Topic 2.6
In the seventeenth century the English Company gained Bombay as a dowry, the Golden Farman of Golconda, Madras, a fortified settlement in Bengal and, in the Farrukhsiyar farmans, the privileges called its Magna Carta. In 1708 its two rival companies merged.
7 min read · UPSC Prelims · History · Advent of the Europeans
At a Glance
- What it is The English Company’s growth in west, south and east India in the seventeenth century
- West Bombay, given to Charles II as dowry in 1662, passed to the Company in 1668
- South Golden Farman of 1632; Fort St George at Madras (1639)
- East Hooghly (1651), Sutanuti and Fort William (1700); Farrukhsiyar’s farmans
- Exam link UPSC Prelims, Modern History: Advent of the Europeans
Where Does It Fit?
This is the sixth topic of the category on the advent of the Europeans. The previous topic covered the charter and first factories. This topic shows how the company got three bases, in Bombay, Madras and Calcutta, and the privileges that anchored them. The next topic turns to the French. Previous topic: The English East India Company: Charter of 1600 and the Early Factories.
How Did the English Get Peace With Rivals and Bombay?
The changing situation helped the English. Bombay was gifted to King Charles II by the King of Portugal as dowry when Charles married the Portuguese princess Catherine in 1662. In 1668 Bombay was given to the East India Company for an annual payment of ten pounds. In 1687 the seat of the Western Presidency was shifted from Surat to Bombay.
This brought a tacit peace with the Portuguese. The Dutch agreed in an Anglo-Dutch compromise not to interfere with the English Company’s trade in India. The English were thus rid of two arch-rivals.
What Was the Golden Farman and How Did Madras Begin?
The Company’s position improved when the Sultan of Golconda issued the Golden Farman in 1632. On payment of 500 pagodas a year, the English gained the privilege of trading freely in the ports of Golconda.
In 1639 Francis Day, a member of the Masulipatnam council, got permission from the ruler of Chandragiri to build a fortified factory at Madras. It later became Fort St George and replaced Masulipatnam as the headquarters of the English settlements in south India. The English then extended their trade to the east and started factories at Hariharpur in the Mahanadi delta and at Balasore in Odisha, in 1633.
How Did the English Enter Bengal?
Bengal was a large, rich province, advanced in trade and an important province of the Mughal empire. Control of its commerce and politics looked attractive to the profit-seeking English.
In 1651 Shah Shuja, the subahdar of Bengal, allowed the English to trade in Bengal in return for an annual payment of Rs 3,000 in place of all duties. Factories were opened at Hooghly (1651) and other places such as Kasimbazar, Patna and Rajmahal. Customs officers at local posts still obstructed the Company by demanding tolls.
The Company then wanted a fortified settlement at Hooghly. William Hedges, the first agent and governor of the Company in Bengal, appealed to Shaista Khan, the Mughal governor, in August 1682, without result. Hostilities began, and Hooghly was sacked by the Mughals in October 1686. The English captured the Mughal forts at Thana (modern Garden Reach), raided Hijli in east Midnapur and stormed the fortifications at Balasore, but they had to leave Hooghly for an unhealthy place at the mouth of the Ganga.
How Did Calcutta and Fort William Come About?
After the Mughal raid on Hooghly, the Company agent Job Charnock negotiated to return to Sutanuti. He signed a treaty with the Mughals in February 1690 and returned in August 1690. An English factory was established on 10 February 1691, the day an imperial farman allowed the English to continue their trade in Bengal on a payment of Rs 3,000 a year in lieu of all dues.
| Year | Step |
|---|---|
| 1696 | A revolt by the Bardhaman zamindar Sobha Singh gave the English a pretext to fortify Sutanuti |
| 1698 | The English bought the zamindari of Sutanuti, Gobindapur and Kalikata (Kalighat) for Rs 1,200 |
| 1700 | The fortified settlement was named Fort William and became the seat of the eastern presidency (Calcutta), with Sir Charles Eyre as first president |
What Were the Farrukhsiyar Farmans, the Company’s Magna Carta?
In 1715 an English mission led by John Surman to the court of Emperor Farrukhsiyar secured three famous farmans that gave the Company valuable privileges in Bengal, Gujarat and Hyderabad. They were regarded as the Magna Carta of the Company.
- Bengal Imports and exports were exempt from additional customs duties, apart from the annual payment of Rs 3,000
- Dastaks The Company could issue dastaks (passes) for the transport of such goods
- Land near Calcutta The Company could rent more land around Calcutta
- Hyderabad The Company kept its freedom from duties and paid only the prevailing rent for Madras
- Surat For an annual payment of Rs 10,000 the Company was exempt from all duties
- Coins The Company’s coins minted at Bombay would be valid throughout the Mughal empire
The Company thus won many trading concessions from the Mughal authority through flattery and diplomacy. Before it could rule the country, though, it still had to defeat the French.
Why Did the Two English Companies Merge in 1708?
After the English revolution of 1688 the Whigs gained influence and opposed the East India Company’s monopoly. A rival company was formed and sent Sir William Norris as its ambassador to Aurangzeb’s court (January 1701 to April 1702) to gain privileges, but it failed. Under pressure from the Crown and Parliament, the two companies were merged in 1708 as the United Company of Merchants of England Trading to the East Indies. This East India Company, from 1708 to 1873, went on to establish British political power in India.
Why Is This Topic Important?
- Three bases Bombay, Madras and Calcutta later became the three Presidencies
- Farman questions The Golden Farman and the Farrukhsiyar farmans are classic Prelims items
- Origin of misuse Dastaks and duty-free trade later became a cause of conflict with Bengal nawabs
What Came Next?
The next topic covers the French East India Company: its founding in 1664 and the rise of Pondicherry. Next topic: The French in India: Foundation of French Centres.
Key People and Terms
- Golden Farman The 1632 grant by the Sultan of Golconda allowing free trade for 500 pagodas a year
- Fort St George The fortified factory at Madras, headquarters of the English in the south
- Dastak A pass allowing the Company’s goods to move without duty
- Fort William The fortified settlement of 1700 at Calcutta
- Job Charnock The Company agent who negotiated the return to Sutanuti in 1690
- John Surman The leader of the 1715 mission to Farrukhsiyar
Exam Corner
Points to Remember
- Bombay: dowry 1662, to the Company 1668 for ten pounds, Western seat 1687.
- Golden Farman: 1632, 500 pagodas a year.
- Fort St George, Madras: 1639 (Francis Day).
- Bengal: Shah Shuja 1651, Rs 3,000 a year; Fort William 1700.
- Merger of the two companies: 1708; farmans: Farrukhsiyar.
Do Not Confuse With
- Golden Farman and Farrukhsiyar’s farmans The Golden Farman (1632) came from Golconda; the Magna Carta farmans came from the Mughal emperor
- Sutanuti, Gobindapur and Kalikata The three villages bought in 1698 for Rs 1,200; Fort William was built in 1700
- Madras and Masulipatnam Madras replaced Masulipatnam as the southern headquarters
Memory Hook
Bombay by dowry, Madras by lease, Calcutta by purchase.
Mains Angle
Questions ask how the Company became a power. These points add depth.
- Concessions Farmans from the Mughal and regional rulers gave duty-free trade and legal cover
- Fortified bases Madras, Bombay and Calcutta gave defendable ports on three coasts
- Diplomacy and force The English used flattery and gifts when weak and force when the Mughals obstructed them
A Question You May Face
An original practice question, not a past paper question.
“How did the English East India Company establish its bases in India during the seventeenth century?”
How to Answer
- West Bombay by the dowry of 1662 and the lease of 1668.
- South The Golden Farman and Fort St George at Madras.
- East Hooghly, Sutanuti, Fort William and the Farrukhsiyar farmans.
- Conclude Say that three fortified bases and privileges prepared the Company’s later power.
GS Relevance
Frequently Asked Questions
How did the English get Bombay?
The King of Portugal gave Bombay to King Charles II as dowry when Charles married the Portuguese princess Catherine in 1662. In 1668 Charles passed it to the East India Company for an annual payment of ten pounds, and in 1687 the Western Presidency moved there from Surat.
What was the Golden Farman of 1632?
The Golden Farman was a grant by the Sultan of Golconda in 1632 that let the English trade freely in the ports of Golconda in return for 500 pagodas a year. It strengthened the Company's position in south India.
When was Fort St George built at Madras?
In 1639 Francis Day, a member of the Masulipatnam council, got permission from the ruler of Chandragiri to build a fortified factory at Madras. It became Fort St George and replaced Masulipatnam as the headquarters of the English settlements in south India.
How was Calcutta founded?
After the Mughal raid on Hooghly, Job Charnock returned to Sutanuti in 1690 under a treaty. In 1698 the English bought the zamindari of Sutanuti, Gobindapur and Kalikata for Rs 1,200, and in 1700 the fortified settlement was named Fort William, the seat of the eastern presidency.
Why are the Farrukhsiyar farmans called the Magna Carta of the Company?
The farmans secured by John Surman's mission of 1715 gave the Company duty-free trade in Bengal on payment of Rs 3,000 a year, the right to issue dastaks, and exemption in Surat for Rs 10,000. Because they gave so many privileges, they were called its Magna Carta.
When did the two English companies merge?
The two English companies merged in 1708 as the United Company of Merchants of England Trading to the East Indies, under pressure from the Crown and Parliament. The rival company formed after the revolution of 1688 had failed, and the merged body was the East India Company from 1708 to 1873.
PYQ Practice — Statement Analysis
1 Bombay passed to Charles II as part of the dowry of the Portuguese princess Catherine.
He gave it to the Company in 1668 for ten pounds a year.
2 The Golden Farman was issued by the Mughal emperor in 1632.
It was issued by the Sultan of Golconda.
3 Francis Day obtained permission to build Fort St George at Madras in 1639.
The ruler of Chandragiri gave the permission.
4 Fort William was named in 1700 and Sir Charles Eyre was its first president.
It became the seat of the eastern presidency.
5 John Surman led the English mission to Farrukhsiyar in 1715.
It secured the farmans called the Magna Carta of the Company.
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