Beginning of French and British East India Companies – The State of Affairs in Deccan

The beginning of the French and British East India Companies in India marked the dawn of European commercial and political expansion in the subcontinent. Both companies entered India during the early seventeenth century with the primary objective of securing trade in spices, textiles, and other oriental goods. However, economic competition soon evolved into political and military rivalry. This rivalry, deeply entangled with the state of affairs in the Deccan, played a decisive role in shaping the early phase of colonial domination in India.

Emergence of the European Trading Companies

The maritime explorations of the late fifteenth and sixteenth centuries opened new sea routes to Asia. Following the Portuguese and the Dutch, the British and French emerged as major contenders in the race for Eastern trade.
The British East India Company, formally known as The Company of Merchants of London Trading into the East Indies, was established in 1600 under a royal charter granted by Queen Elizabeth I. The company was granted monopoly rights to trade in the East Indies for fifteen years. It began operations in India by establishing its first factory at Surat in 1608, under the leadership of Captain William Hawkins. The Mughal Emperor Jahangir later permitted the Company to trade freely, marking the beginning of British commercial activity in India.
The French East India Company (Compagnie des Indes Orientales) was founded in 1664 during the reign of Louis XIV, promoted by Jean-Baptiste Colbert, the French Finance Minister. Its objective was to rival the success of the British and Dutch companies by establishing French commercial influence in Asia. The French established their first Indian settlement at Surat in 1668, followed by factories at Masulipatnam, Chandernagore, and Pondicherry, which became their chief headquarters in India.

Early Trade and Rivalry

Initially, both companies concentrated solely on trade. The British traded in cotton textiles, silk, indigo, saltpetre, and spices, while the French also sought similar commodities. By the late seventeenth century, both had established coastal factories and trading posts:

• The British built their centres at Madras (1639), Bombay (1668), and Calcutta (1690), which became the famous Presidencies.
• The French developed Pondicherry, Chandernagore, Mahe, Karikal, and Yanam as their key settlements.

The commercial rivalry between the two European powers intensified as they sought monopolies over Indian goods. However, the balance of power in India was deeply influenced by the political situation in the Deccan, where regional kingdoms were struggling for dominance following the decline of the Mughal Empire.

The State of Affairs in the Deccan (17th–18th Centuries)

The Deccan, encompassing large parts of present-day Maharashtra, Telangana, Karnataka, and Andhra Pradesh, held strategic and economic significance. During the seventeenth and eighteenth centuries, it became a theatre of political turbulence and shifting allegiances.
1. Decline of Mughal Authority: Following the death of Aurangzeb in 1707, the Mughal Empire began to disintegrate. The empire’s control over the Deccan weakened, leading to the emergence of semi-independent regional powers such as the Nizam of Hyderabad, the Marathas, and several smaller principalities.
2. Rise of the Nizam of Hyderabad: In 1724, Asaf Jah I (Nizam-ul-Mulk) established the Hyderabad State, effectively becoming independent of the Mughals while nominally acknowledging their authority. Hyderabad became a centre of power in the Deccan, attracting both the French and the British, who sought political alliances to advance their commercial interests.
3. Ascendancy of the Marathas: The Maratha Confederacy, founded by Shivaji in the 17th century, had expanded considerably by the early 18th century. Under the leadership of the Peshwas from Pune, the Marathas became a dominant power in western and central India. Their frequent military expeditions, known as Chauth and Sardeshmukhi collections, extended into the Deccan, Gujarat, and even Bengal.
4. Internal Rivalries: The Deccan was fragmented by conflicts among the Nizam, the Marathas, and the Carnatic rulers (in southern Deccan). This fragmentation created opportunities for foreign powers to intervene in local politics under the guise of supporting one faction against another.

The Carnatic Region and Anglo-French Rivalry

The Carnatic, located in the southern part of the Deccan (corresponding to modern Tamil Nadu and parts of Andhra Pradesh), became the focal point of Anglo-French conflict in India.
1. The Carnatic Wars (1746–1763): The instability in the Deccan coincided with European conflicts—particularly the Austrian War of Succession and the Seven Years’ War—which extended to Indian soil. The French and British companies, initially trading entities, became embroiled in political and military contests.

• First Carnatic War (1746–1748): Triggered by European hostilities, this war saw the French, under La Bourdonnais and Dupleix, capture Madras from the British. However, it was returned after the Treaty of Aix-la-Chapelle (1748).
• Second Carnatic War (1749–1754): This conflict involved rival claimants to the thrones of Hyderabad and the Carnatic. The British supported Muhammad Ali, while the French backed Chanda Sahib and the Nizam’s faction. The British victory under Robert Clive at the Battle of Arcot (1751) marked the beginning of British military ascendancy.
• Third Carnatic War (1756–1763): Part of the global Seven Years’ War, this final conflict decisively ended French ambitions in India. The British defeated the French at Wandiwash (1760), forcing them to retreat to Pondicherry, which was later restored as a trading post but stripped of political power.

Impact of the Deccan Politics on European Expansion

The political fragmentation of the Deccan created fertile ground for European intervention. The British and French used their military and financial resources to influence regional power struggles:

• The Nizam of Hyderabad, seeking stability, alternated alliances between the French and British to strengthen his position.
• The Marathas, although a major power, were often divided by internal rivalries, which the British later exploited.
• The constant warfare in the Deccan weakened indigenous powers, paving the way for European supremacy.

The French, under Governor Joseph François Dupleix, initially gained an advantage by forming alliances with local rulers and employing trained Indian soldiers (sepoys). However, their lack of naval superiority and inconsistent support from France hindered their long-term success. The British, on the other hand, benefited from superior naval power, political diplomacy, and financial discipline, enabling them to gradually dominate the Indian political landscape.

Consequences

1. British Political Ascendancy: The outcome of the Anglo-French rivalry established the British East India Company as the pre-eminent European power in India. The French influence remained confined to a few coastal enclaves.
2. Decline of the Deccan Powers: The wars and alliances with Europeans drained the resources of Deccan rulers. The Nizam and the Marathas eventually became subordinate allies of the British under later treaties such as the Subsidiary Alliance.
3. Transformation of the British East India Company: The Company evolved from a commercial body to a political power, capable of conquering and administering territories.
4. End of French Political Ambitions: After the defeat at Wandiwash, French interests in India became purely commercial, and their political role diminished permanently.