East India Company and the Foundation of Calcutta

The foundation of Calcutta (now Kolkata) was closely intertwined with the rise of the British East India Company and its gradual consolidation of power in eastern India. Established in the early eighteenth century, Calcutta became the nucleus of British administration and trade in Bengal, evolving from a modest cluster of villages into one of the most important colonial cities of Asia. Its emergence marked a defining moment in the establishment of British influence in India and the subsequent creation of the British Raj.

The East India Company in Bengal

The English East India Company, formed in 1600 under a royal charter from Queen Elizabeth I, sought to develop profitable trade with the East Indies. Initially focusing on spice trade with Southeast Asia, the Company later turned towards the Indian subcontinent, which offered a more stable and lucrative base for commerce in textiles, silk, and opium.
By the seventeenth century, the Mughal Empire under Emperor Jahangir and later Shah Jahan had permitted the British to establish trading posts (factories) in Surat, Masulipatnam, and Hugli. Bengal, known as the “Paradise of Nations” due to its fertility and economic prosperity, soon attracted British attention.
In 1651, the East India Company obtained permission from Shah Shuja, the Mughal Subahdar (governor) of Bengal, to establish a small trading settlement at Hugli on the river Ganges. This settlement gradually expanded under the leadership of the Company’s representatives, known as factors.

The Acquisition of the Calcutta Site

The foundation of Calcutta is traditionally associated with Job Charnock, an English administrator of the East India Company. In 1690, Charnock selected a site further south along the east bank of the Hooghly River, comprising three small villages — Sutanuti, Govindpur, and Kalikata.
These villages were under the zamindari of the Sabarna Roy Choudhury family, who held the area on lease from the Mughal authorities. The East India Company obtained rights to these villages through negotiation and purchase, establishing a more secure base for trade and defence.
This move was motivated by strategic and commercial considerations:

• The site’s proximity to deep-water anchorage on the Hooghly River facilitated shipping and trade.
• It offered a defensible location, slightly removed from Portuguese and Dutch competitors in Hugli and Chinsurah.
• The new settlement provided a safe haven for European traders during periods of local instability.

Although Job Charnock is often credited as the founder of Calcutta, modern historical research suggests that the city evolved gradually rather than being founded on a single date or event. Nevertheless, 24 August 1690 is traditionally commemorated as the founding date of Calcutta.

Growth of the Settlement and Construction of Fort William

To protect the Company’s interests, a fortification was built in 1696, known as Fort William, named after King William III of England. This structure served both as a defensive bastion and as the nucleus of the new town. The fort and its adjoining settlement became collectively known as Calcutta, derived from the village of Kalikata.
By 1698, the Company formally acquired the zamindari rights to the three villages from the Sabarna family with imperial confirmation from Mughal Emperor Aurangzeb through a farman (royal decree) granted to the Company in 1700. The fort soon became the seat of the Company’s administration in Bengal, and the settlement expanded rapidly with Englishmen, Indian merchants, artisans, and labourers.
Calcutta’s layout developed along a European pattern, with distinct areas for Europeans (“White Town”) and Indians (“Black Town”). The White Town contained the Company’s buildings, churches, and residences, while the Black Town housed the Indian population, bazaars, and temples.

Calcutta as the Capital of British Power

In 1707, following the death of Aurangzeb, the Mughal Empire’s authority began to wane, allowing the East India Company to assert greater autonomy. The Governor of Bengal, based at Fort William, emerged as one of the most powerful Company officials in India.
By the early eighteenth century, Calcutta had become the chief port and administrative centre of the East India Company in eastern India. In 1772, under the governorship of Warren Hastings, Calcutta was declared the capital of British India, solidifying its political importance.
The city’s urban and architectural development reflected its growing prominence:

• The construction of St. John’s Church, Writers’ Building, and Government House demonstrated British influence and affluence.
• The Fort William College (1800) was established to train Company officials in Indian languages and administration.
• The city became the hub of commerce in indigo, silk, and jute, with a diverse population including British, Armenian, Jewish, and Indian communities.

The Black Hole of Calcutta and British Expansion

The Black Hole of Calcutta incident (1756) marked a significant episode in the city’s early history. When Siraj-ud-Daulah, the Nawab of Bengal, attacked Calcutta to curb British fortification without his permission, he captured Fort William and imprisoned several British soldiers and civilians in a small dungeon. Many perished due to suffocation.
This event was used by the British as a pretext for military retaliation. Robert Clive and Admiral Watson recaptured Calcutta in early 1757 and subsequently defeated Siraj-ud-Daulah at the Battle of Plassey (1757). This victory marked the beginning of British political control in Bengal and, eventually, the whole of India.
Following Plassey, the East India Company became the de facto ruler of Bengal, with Calcutta as its administrative and commercial capital. The Treaty of Allahabad (1765) later granted the Company the Diwani (revenue collection rights) of Bengal, Bihar, and Orissa, further strengthening Calcutta’s status as the seat of British power.

Economic and Cultural Development

Calcutta emerged as a vital centre of British trade, administration, and education in India. The city hosted major mercantile activities, with jute, tea, and opium becoming key exports. Its port connected India to Europe and Southeast Asia, making it one of the busiest in the British Empire.
Culturally, the city became the cradle of the Bengal Renaissance during the nineteenth century, nurturing reformers such as Raja Ram Mohan Roy and becoming a hub for journalism, literature, and modern education. Institutions such as the Hindu College (1817) and later Calcutta University (1857) further cemented its intellectual leadership.

Legacy

The foundation of Calcutta signified the transition of the East India Company from a commercial enterprise to a territorial power. The city became both a symbol of British imperial ambition and a centre of Indian modernisation and reform.
From its modest beginnings as a small trading outpost, Calcutta evolved into the capital of British India until 1911, when the seat of power was shifted to Delhi. Nevertheless, its legacy as the birthplace of colonial administration, commerce, and early Indian nationalism remains integral to the history of both Britain and India.