The English East India Company: Charter of 1600 and the Early Factories
Modern History › Advent of the Europeans in India · Topic 2.5
On 31 December 1600 Queen Elizabeth I gave a charter of exclusive trade to the Governor and Company of Merchants of London Trading into the East Indies. The company turned to India for textiles and set up its first factories at Masulipatnam and Surat.
6 min read · UPSC Prelims · History · Advent of the Europeans
At a Glance
- What it is The founding of the English East India Company and its first steps in India
- Charter 31 December 1600, issued by Queen Elizabeth I
- First factories Masulipatnam (1616) and Surat (1613)
- Key envoys Captain William Hawkins (1609) and Sir Thomas Roe (1615-19)
- Exam link UPSC Prelims, Modern History: Advent of the Europeans
Where Does It Fit?
This is the fifth topic of the category on the advent of the Europeans. After the Portuguese and the Dutch, the English arrived. This topic covers the company’s founding and first factories. The next topic follows its growth through the seventeenth century. Previous topic: The Dutch in India: Settlements, Anglo-Dutch Rivalry and Decline.
Why Did the English Come to the East?
Francis Drake’s voyage around the world in 1580 and the English victory over the Spanish Armada in 1588 gave the English a new sense of enterprise. It encouraged sailors to venture to the East. As knowledge grew of the high profits earned by the Portuguese in the Eastern trade, English traders also wanted a share.
In 1599 a group of English merchants calling themselves the Merchant Adventurers formed a company.
What Did the Charter of 1600 Give the Company?
On 31 December 1600 Queen Elizabeth I issued a charter that gave exclusive trading rights to the company, named the Governor and Company of Merchants of London Trading into the East Indies.
| Feature | Detail |
|---|---|
| Date | 31 December 1600 |
| Granted by | Queen Elizabeth I |
| Right | Exclusive trade with the East |
| Initial monopoly | Fifteen years |
| Extension | Made indefinite by a fresh charter in May 1609 |
The Dutch were already concentrating on the East Indies, so the English turned to India in search of textiles and other trade goods.
What Happened at the Court of Jahangir?
Captain Hawkins arrived at the court of Jahangir in April 1609. His mission to set up a factory at Surat did not succeed because of the opposition of the Portuguese, and he left Agra in November 1611.
In 1612 Captain Thomas Best defeated the Portuguese in the sea off Surat. An impressed Jahangir gave permission in early 1613 for the English to set up a factory at Surat under Thomas Aldworth.
In 1615 Sir Thomas Roe came as an accredited ambassador of James I to the court of Jahangir and stayed until February 1619. He was unable to conclude a commercial treaty with the Mughal emperor, but he secured a number of privileges, including permission to set up factories at Agra, Ahmedabad and Broach.
Why Did Naval Success Matter to the Mughal Court?
Jahangir, the Mughal emperor, had no navy worth the name. The Mughal empire was strong on land, but the sea trade of Surat was open to attack by Portuguese ships. When Thomas Best beat a Portuguese fleet at sea, the English showed that they could protect shipping and trade. This is an analytical point, not a statement from any single record, but it explains why a sea victory won the English a factory that years of diplomacy by Hawkins had not.
The lesson for the company was lasting. In its early years it gained from naval strength and from the favour of rulers, and these two supports became the pattern of its later growth.
How Did the Company Enter South India?
In 1611 the English started trading at Masulipatnam on the south-eastern coast of India, and in 1616 they established a factory there. Masulipatnam was thus the company’s first factory in the south.
| Year | Step |
|---|---|
| 1600 | Charter of Queen Elizabeth I |
| 1609 | Charter made indefinite; Hawkins at Jahangir’s court |
| 1611 | Trading at Masulipatnam begins; Hawkins leaves Agra |
| 1612 | Thomas Best defeats the Portuguese off Surat |
| 1613 | Factory at Surat under Thomas Aldworth |
| 1615-19 | Sir Thomas Roe at Jahangir’s court |
| 1616 | Factory at Masulipatnam |
The company did not have a smooth progress. It had to contend with the Portuguese and the Dutch in the beginning. The next topic shows how the changing situation turned things in its favour.
Why Is This Topic Important?
- Start of British trade in India The charter of 1600 began the company that later gained political power
- Direct facts Dates of the charter, Hawkins, Best and Roe are common Prelims questions
- Link to earlier topics English success against the Portuguese at sea impressed Jahangir and opened Surat
What Came Next?
The next topic follows the English Company’s progress through the seventeenth century: Madras, Bombay, Bengal and the farmans. Next topic: Progress of the English Company in the Seventeenth Century.
Key People and Terms
- Merchant Adventurers The group of English merchants who formed a company in 1599
- Charter A document of rights from the Crown; the 1600 charter gave exclusive trade
- Factory A trading post where goods were stored and traded
- Thomas Roe Ambassador of James I at Jahangir’s court, 1615-19
- Thomas Aldworth Head of the first English factory at Surat in 1613
- Masulipatnam The company’s first factory in south India, 1616
Exam Corner
Points to Remember
- Charter: 31 December 1600; monopoly of fifteen years, made indefinite in May 1609.
- The English defeated the Armada in 1588; Drake sailed around the world in 1580.
- Best defeated the Portuguese off Surat in 1612; Surat factory in 1613.
- Roe at Jahangir’s court: 1615 to February 1619.
- Masulipatnam factory: 1616.
Do Not Confuse With
- Hawkins and Roe Hawkins failed to get a factory at Surat; Roe got permissions for Agra, Ahmedabad and Broach
- Surat and Masulipatnam Surat (1613) in the west; Masulipatnam (1616) in the south-east
- Charter of 1600 and 1609 The 1600 charter gave fifteen years; the 1609 charter made the monopoly indefinite
Memory Hook
Elizabeth gave the charter, Best won at sea, Roe won the privileges.
Mains Angle
Questions ask how the English entered India. These points add depth.
- Motive The profits made by the Portuguese pulled the English to the East
- Method They used royal charters, envoys and naval success to win Mughal favour
- Constraints The Portuguese and Dutch obstructed them at first
A Question You May Face
An original practice question, not a past paper question.
“Trace the early phase of the English East India Company from 1600 to 1619.”
How to Answer
- Origins Mention Drake, the Armada and the Merchant Adventurers.
- Charter State the charter of 1600 and the extension of 1609.
- Early missions Cover Hawkins, Best and Roe.
- Conclude Say that the first factories were at Surat and Masulipatnam.
GS Relevance
Frequently Asked Questions
When was the English East India Company founded?
The English East India Company was founded under a charter issued by Queen Elizabeth I on 31 December 1600. It was named the Governor and Company of Merchants of London Trading into the East Indies, and it received a fifteen-year monopoly of Eastern trade.
Who were the Merchant Adventurers?
The Merchant Adventurers were a group of English merchants who formed a company in 1599 to share in the profits of the Eastern trade that the Portuguese had been earning. Their company received the royal charter of Queen Elizabeth I on 31 December 1600.
What was the result of Captain Hawkins's mission?
Captain Hawkins reached the court of Jahangir in April 1609 to seek a factory at Surat, but Portuguese opposition defeated his mission, and he left Agra in November 1611. The English got Surat only after Thomas Best defeated the Portuguese at sea in 1612.
What did Sir Thomas Roe achieve at the Mughal court?
Sir Thomas Roe, ambassador of James I, stayed at Jahangir's court from 1615 to February 1619. He could not secure a commercial treaty but gained privileges, including permission to set up factories at Agra, Ahmedabad and Broach.
Where did the English set up their first factories in India?
The English set up a factory at Surat in 1613 under Thomas Aldworth, after Jahangir granted permission, and a factory at Masulipatnam on the south-eastern coast in 1616. They had started trading at Masulipatnam in 1611.
Why did the English turn to India?
The English turned to India because the Dutch were already concentrating on the East Indies, and India offered textiles and other trade goods. English traders also wanted a share of the high profits that the Portuguese had made in the Eastern trade.
PYQ Practice — Statement Analysis
1 Queen Elizabeth I issued the charter to the East India Company on 31 December 1600.
It gave exclusive trading rights to the company.
2 The initial monopoly granted by the charter of 1600 was twenty-five years.
It was fifteen years, and was made indefinite in May 1609.
3 Thomas Best defeated the Portuguese in the sea off Surat in 1612.
Jahangir then permitted a factory at Surat.
4 Sir Thomas Roe concluded a commercial treaty with Jahangir.
He failed to conclude a treaty but secured several privileges.
5 The English established a factory at Masulipatnam in 1616.
They had started trading there in 1611.
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