Chapter 2 From Trade to Territory Solutions

Let’s Recall

Q1. Match the following:

(1) Diwani

(a) Tipu Sultan

(2) “Tiger of Mysore”

(b) Right to Collect Land Revenue

(3) Faujdari Adalat

(c) Sepoy

(4) Rani Channamma

(d) Criminal Court

(5) Sipahi

(e) Led an anti-British Movement in Kitoor

Ans:

(1) Diwani

(b) Right to Collect Land Revenue

(2) “Tiger of Mysore”

(a) Tipu Sultan

(3) Faujdari Adalat

(d) Criminal Court

(4) Rani Channamma

(e) Led an anti British Movement in Kitoor

(5) Sipahi

(c) Sepoy

Q2. Fill in the blanks: 
(a) The British conquest in began with the battle of ________.
(b) Haidar Ali & Tipu Sultan were the rulers of _________.
(c) Dalhousie implemented the Doctrine of _________.
(d) Maratha kingdoms were located mainly in the _________part of India.
Ans: (a) Plassey
(b) Mysore
(c) Lapse
(d) Southern

Q3. State whether true or false:
(a) The Mughal Empire became stronger in the eighteenth century.
(b) The English East India Company was the only European Company that traded with India.
(c) Maharaja Ranjit Singh was the ruler of Punjab.

Maharaja Ranjit Singh(d) The British did not introduce administrative changes in the territories they conquered.
Ans: (a) False
(b) False
(c) True
(d) False

Let’s Discuss

Q4. What attracted European trading companies to India?   
Ans: European trading companies were attracted to India because of a number of reasons:

• Trading with India was highly profitable and fruitful to the businessmen in Europe. 
• The European trading companies purchased goods at cheaper and sold them in Europe at higher prices. 
• The fine qualities of cotton and silk produced in India had a big market in Europe.
• Indian spices like – pepper, cloves, cardamom and cinnamon were in great demand in Europe.

So it is because of these reasons which made India a place of attraction for many European trading companies.  

Q5. What were the areas of conflict between the Bengal Nawabs and the East India Company?
Ans: After Aurangzeb’s death in the 18th century, the Nawabs of Bengal sought more power and independence, like other regional rulers. They refused to grant the East India Company further concessions and demanded large tributes for allowing trade. The Nawabs also stopped the company from minting coins and expanding its fortifications, accusing the company of taking away revenue and weakening their authority.

In response, the company refused to pay taxes, sent disrespectful letters, and tried to humiliate the Nawab and his officials. The company argued that the local officials’ unfair demands were harming trade, which could only thrive if duties were lifted.

Q6. How did the assumption of Diwani benefit the East India Company?
Ans: The Diwani right to the East India Company benefited it in several ways like –

• The Diwani allowed the company to use the vast revenue resources of Bengal. 
• Earlier the company had to buy most of the goods in India in exchange of gold and silver which, they imported from Britain. After the assumption of Diwani, the company started to purchase goods in India with these revenues, as a result of which the outflow of gold and silver from Britain entirely stopped. 
• Now the revenues from India could be used to purchase cotton & silk textiles and also meet various expenses including maintaining the troops, meeting the cost of building the company fort and offices at Calcutta.   

Q7. Explain the system of “subsidiary alliance”.
Ans: After the battle of Plassey in 1757, the battle of Buxar in 1764, and gaining the Diwani of Bengal, the company began to expand its rule in many parts of India. For that, it had devised several plans, one among them was the “Subsidiary Alliance”. According to the terms of this alliance –

• Indian rulers were not allowed to have their independent armed forces.  
• They were to be protected by the company but pay for the Subsidiary Forces, that the company was supposed to maintain for the purpose of their protection. 
• If the Indian rulers failed to make payment, then that part of the territory was taken away by the company as a penalty.

For example, the Nawab of Awadh was forced to give over half of his territory to the company in 1801 as he failed to pay for the Subsidiary forces. 

Q8. In what way was the administration of the company different from that of Indian rulers?
Ans: British India was divided into three Presidencies, Bengal, Madras, and Bombay, while under Indian rulers, the administration was divided into districts, parganas, tehsils, and villages. Each unit was governed by a Governor, with the Governor-General being the supreme head of British administration, unlike the Indian system, where the King or Nawab was in charge. 

Warren Hastings introduced a new justice system, setting up civil and criminal courts in each district. European District Collectors presided over civil courts, while criminal courts were managed by a Qazi and Mufti. The Regulating Act of 1773 established a Supreme Court. The District Collector’s main role was to collect revenue, enforce law and order, and oversee local administration with the help of judges and police officers.

Q9. Describe the changes that occurred in the composition of the company’s army. 
Ans: The East India Company brought new ideas in administration and gradually reformed its army. Unlike the Mughal Army, which relied on traditional cavalry and infantry from peasant recruits skilled in archery and swordsmanship, the Company modernized its forces with guns and small tanks. Over time, infantry regiments became more important than cavalry due to advancements in warfare. By the early 19th century, British-style training, drills, and discipline were introduced, strictly regulating soldiers’ lives. However, this caused issues, as it disregarded Indian soldiers’ caste and community backgrounds, and they were not paid or treated like British soldiers.