What was the East India Trading Company?

The East India Trading Company, a name that once resonated from London to Calcutta, is an enigma that continues to captivate our imagination centuries later.

The impact of Britain’s empire has historically been glossed over, leading to a lack of clarity on the subject.

The generally accepted narrative is that Britain’s imperial history was vastly beneficial to Britain.

Any atrocities, corruption or unethical practices are touted to be a sign of the times or necessary collateral damage.

This has led to many British Desi people feeling unsure about their place in Britain and in the global landscape.

The East India Company is also known as The East Indian Trading Company or EIC.

The company has recently undergone a renewal and reappeared with a fresh new face and website.

In this article, we dive into the formation, evolution and lasting cultural impact of the East India Company and how it shaped the course of history and commerce. 

Pre-1600s

The landscape of the international community in the 1500s was of two dominating naval powers.

The Spanish and Portuguese navies led the charge in controlling trade routes globally and went unchallenged for a long period.

When referring to India in this context we are speaking of pre-Victorian era ideas. India then consisted of modern-day India, Burma, Bangladesh, Kashmir, Pakistan and Afghanistan.

This area of the world was prosperous and wealthy.

The oldest university in the world was in India and it was a cultural boiling pot and hub for science, philosophy, poetry and art.

England, France and the Dutch Republic were eager to get in on the lucrative opportunities. So, they began vying for a foothold in the Far Eastern market.

In 1588 the British defeated the Spanish armada on the high seas, under the leadership of Sir Francis Drake.

This established the British Navy as a major threat to those who opposed them and gave them a stronger status when it came to alliances and trade.

British Historical Context

The historical context at the time in Britain was of reformation, civil unrest and religious and royal infighting.

Due to Queen Elizabeth I’s protestant faith, she was considered outside of the Roman Catholic fold. This led to a growing interest in fostering relations with the Muslim world.

Elizabeth’s position allowed her to achieve positive alliances with the Ottoman Empire and Moroccan kingdoms.

She was able to bypass the ban on trading with ‘Infidels’ by the Papal Decree (otherwise known as the papal bull).

Queen Elizabeth I was also involved in funding and hiring unofficial pirates.

These men were called ‘privateers’ and were hired on behalf of the crown.

One notable privateer employed was Sir Walter Raleigh. The legend of El Dorado was inspired by Raleigh; after his alleged activities in South America.

In 1592 the Portuguese ship the ‘Madre de Deus’ was captured. The ship was filled with riches and this was the catalyst for a petition calling for a royal Charter.

This royal charter was granted to ‘The Governor and Company of Merchants of London Trading into the East Indies.’

Finally, the formation of what is now commonly referred to as the East India Trading Company.

Before her death in 1603, Queen Elizabeth I unknowingly or otherwise gave the go-ahead for Britain’s best-ever economic decision.

Thus began the exploitation of trade with the East, Southeast Asia and India.

Indian Historical Context & Initial Voyage

The Mughal Empire was the main power on the Indian subcontinent from the 1500s.

It was centralised, well-organised and also succeeded in merging Persian/Islamic culture with Indian culture.

With a fighting population of more than 4 million, the Mughal Empire was a formidable force.

Mughal emperors such as Babur, Humayun, and Akbar laid the groundwork for periods of prosperity and relative social cohesion.

By the 1600s, India (and the Far East), had made its debut on the European stage.

The Mughal Empire was vastly rich and was in a prime location for trading.

Possibly to India’s detriment, news of exotic riches reached Europe.

It is not to be forgotten that the Mughal Empire’s share of the world economy came to around 23% at this time.

The first voyage of the ‘Red Dragon’ (1601–1603) was a trade expedition to India, captained by James Lancaster.

The Dutch East Inda Company (VOC) had already set up trading routes in India as well as the Portuguese.

Thus the British EIC made their first trades in the area in modern-day Indonesia.

Imperial Blessing

Around 1613, Mughal Emperor Jahangir became perturbed by the Portuguese increasingly hostile activities on his lands.

Therefore, the Portuguese were subsequently expelled from Bengal.

Learning from this, the British EIC instead attempted to establish a relationship directly with Jahangir.

King James I extended greetings from England and Thomas Roe was chosen to voyage to India to establish good relations.

Attempting to arrange an exclusive deal for the East India Company did prove harder than first thought.

Much to Roe’s irritation, the Mughals had no special regard for the English.

It took a few years of back and forth and courting of Jahangir but eventually, Roe became a court favourite.

The EIC was granted exclusive rights to set up factories in Surat and the Bay of Bengal. The following is part of the letter from Emperor Jahangir to King James I (1617):

“I have given my general command to all the kingdoms and ports of my dominions to receive all the merchants of the English nation as the subjects of my friend.

“That in what place soever they choose to live, they may have free liberty without any restraint.

“And at what port soever they shall arrive, that neither Portugal nor any other shall dare to molest their quiet.”

The tone of the letters, while indicative of the time and region, displays the positive diplomatic relations facilitated by Roe.

Expansion

Following the imperial blessing, the East India Trading Company focused on expansion and eventually overtook the Portuguese in the area.

The company now had trading posts in Surat and Madras. The city of Madras was the first British community to grow in India.

When Catherine of Braganza married King James II, Portugal conceded Bombay to the British Crown as part of the dowry. Bombay was turned over to the company in 1668.

It is to be noted Catherine was an avid tea drinker and advocated for the drink to be introduced in the royal courts.

The first Anglo-Mughal war occurred between 1686 and 1690 when the English began to demonstrate the leverage they had in the area.

Gradually, they sent more and more ships and soldiers to the coasts of India and by 1690 the company established a factory in Calcutta. 

These so-called ‘factories’ became more strategically important as wars and fighting broke out between various entities in the area.

Civil disputes became the norm and the main hubs for trade with the English changed.

These small colonies became the local power along the coasts of India at the time.

The EIC now had a growing army consisting of native sepoys as well as British soldiers.

This private corporation also maintained an iron grip on the highly valuable trade routes established.

Trade

Over the next few decades trade with Britain increased and the EIC negotiated with local princes called ‘Nawabs’.

This meant more coastal Indian rulers and Governors granted permission for trading to be carried out in their ports.

England royalty enjoyed the luxurious and exotic items whenever EIC ships landed. Tea, exotic animals, animal furs and other curiosities were indulged in.

The trade in spice was the original goal however more lucrative opportunities arose in cotton and textiles.

Beautiful Kashmiri woven patterns that were imported from India were adored by the Europeans and the British.

British merchants who regularly used low-quality wool grew angry, however.

This anger led to the storming of the company’s London quarters by a mob.

Although, a solution was developed.

The demand for raw materials such as cotton was high, and British textile merchants began to learn the various skills to create imitation textiles impeccably.

South Lancashire and the Pennines were central hubs and drivers of the industrial revolution in Britain and textile manufacturing began to be highly lucrative for the country.

Weavers in the town of Paisley in Scotland became so skilled at imitating these designs, that the designs are universally referred to as Paisley. The original label was variations of Buta.

Through various taxes, tariffs and duties the market was manipulated. India’s textile trade was suffering directly as the British textile industry boomed.

Tea was another favourite trading item as well as coffee from Arabia. These hot drinks were enjoyed by royalty and became increasingly popular in the Americas.

The Atlantic Slave Trade

The EIC began taking part in increasingly questionable activities including dealing in the African Slave trade, to the east coast. 

It’s argued they indirectly contributed to the global tragedy of human trafficking.

While it wasn’t primarily a slave trading company, its influence and economic power were deeply entwined with the broader colonial system.

The company’s expansion into Asia and Africa facilitated the exchange of goods and resources that were closely connected to the slave trade.

As the British Empire expanded, the demand for cheap labour in the colonies increased.

So, the East India Trading Company’s access to raw materials and goods from its colonies played a crucial role in shaping this demand.

For example, the cultivation of cash crops like sugar, cotton, and tobacco in the American colonies was largely fuelled by the resources obtained from India and Africa through the company’s trade networks.

Furthermore, the profits made by the East India Trading Company from sales and taxation contributed to the wealth and power of the British Empire.

This, in turn, supported the broader colonial and economic system that sustained the transatlantic slave trade.

The revenues generated by the company’s trade were essential to the British government’s ability to maintain its empire, which included slave-dependent colonies.

While the EIC was not directly involved in the slave trade, the resources it extracted from its colonies significantly contributed to the broader colonial system that sustained the transatlantic slave trade. 

Opium Wars & Downfall

China was ravaged by an opium epidemic when this was introduced by the company illegally. This led to the Opium Wars.

The East India Company were expanding its territory and influence whilst making a fortune for its shareholders.

In 1757 Robert Clive defeated the local Nawab and his French allies.

The Mughal empire was more and more fractured and this meant territory was gained by the British. They began imposing ridiculous taxes to maintain armies and increase profits.

This was in British colonies around the globe, not just India – you may have heard the term “Boston Tea Party”.

Tea taxes imposed caused a revolt in the American colonies of the time. This protest and the retaliation from the British government led to the American Revolution.

Due to the EIC’s increasing aggression and growing army, the British Government and elites began to feel uncomfortable.

The directors who grew exponentially wealthier were nicknamed ‘Nabobs’ after the Nawabs of India.

Increasing regulations and restrictions were implemented to curb the EIC’s powers.

In 1858 after a revolt by the native Indians, the board of the EIC was dissolved.

However, they did gather incredible amounts of wealth in the form of dividends for years after.

Cultural Impact

Today the result of the events of 1858 and the royal takeover is the beginning of the British Raj in India.

The EIC paved this complicated path. First with trade, attempts at diplomacy and friendship.

Once a foothold was gained, this friendship was swiftly exploited. The messaging of the British Raj repackaged the exploits of the trading company into a sexier package.

Queen Victoria presided as Empress over the various English colonies spread throughout the globe.

The cultural impact of this time is long-lasting, especially with the exportation of Indian culture.

The British archives extensively documented this time and various artefacts are still held in the UK. However, the continued denial of this prevails even today.

The centuries-long important cultural practices and traditions of textile weaving were commodified.

The painstaking hand-crafted shawls and fabrics that were produced were commodified and replaced with far lower-quality textiles produced by machines.

Protecting Britain’s legacy and economy meant restricting, undermining and erasing the most interesting and ingrained parts of the culture of the Indian subcontinent.

Some may argue this is why there has been an erosion of unified identity in this region.

The image portrayed of Indian people today has its roots in the propaganda of the Victorian age.

The exportation of knowledge, raw materials, ideas, practices, unusual foods, spices, jewels and textiles meant the native skills and workers had been exported for the world to enjoy.

But in popular culture, it has never been openly acknowledged. It is awkwardly pushed to another side, ignored and avoided.

Maybe it is time this was revisited.