East India Company and the Foundation of Madras

The foundation of Madras (now Chennai) was a landmark event in the history of British expansion in India, marking the beginning of one of the earliest and most enduring centres of English influence on the subcontinent. Established by the English East India Company in the seventeenth century, Madras became the nucleus of British trade, administration, and power in southern India. The city evolved from a small fishing village into a fortified settlement and later into the capital of the Madras Presidency, one of the three major administrative divisions of British India.

The East India Company and Early Trade in South India

The East India Company (EIC) was founded in 1600 by royal charter from Queen Elizabeth I to conduct trade with the East Indies. Initially, the Company sought to compete with Portuguese and Dutch traders who dominated the Indian Ocean trade. While the Company first established its foothold in Surat (1613) on the western coast, it soon recognised the commercial potential of the Coromandel Coast on the eastern shore of India.
The Coromandel region, known for its textile industry, especially fine cotton fabrics and calicoes, attracted European traders from the early seventeenth century. The English, Portuguese, Dutch, and French all vied for access to these rich markets. The English factors (agents) initially operated from small trading posts at Masulipatnam (1611) and Armagaon (1626). However, the need for a secure and defensible trading base led to the search for a permanent settlement along the coast.

Foundation of Madras (1639–1640)

The foundation of Madras is traditionally dated to 1639, when the English East India Company acquired a strip of land from a local ruler to establish a fortified trading settlement.

• Acquisition of Land: The English agent Francis Day, assisted by Andrew Cogan, negotiated with Damarla Venkatadri Nayak, the local Nayak of Poonamallee and a vassal of the Vijayanagara ruler. On 22 August 1639, an agreement was concluded granting the English a piece of land along the Coromandel Coast, including the fishing village of Madraspatnam.
• Construction of Fort St. George: Soon after the acquisition, construction began on a fortified factory named Fort St. George. Completed in 1640, the fort became the administrative and commercial centre of the new settlement. It was named after St. George, the patron saint of England. Around the fort, a European township developed, known as the “White Town”, while Indian merchants and artisans settled nearby in an area called “Black Town” (later known as Georgetown).

This fort and the adjoining settlement formed the nucleus of modern Madras, which grew rapidly as trade expanded.

Growth and Development of the Settlement

Madras soon emerged as an important centre of trade, diplomacy, and administration for the East India Company.

• Trade and Commerce: The location of Madras was strategically advantageous for maritime trade. The port provided access to the Bay of Bengal and routes to Southeast Asia. It became a major hub for the export of textiles, spices, saltpetre, and indigo, while importing silver, copper, and European goods. Indian merchants, particularly Komatis and Chettis, played a crucial role in facilitating trade.
• Urban Expansion: The town expanded steadily through the seventeenth and eighteenth centuries. By 1652, the English had obtained additional lands from local rulers, allowing the settlement to grow. The Black Town became a bustling area of Indian traders, weavers, and artisans who supplied goods for export.
• Fort St. George as Administrative Centre: The fort housed the Company’s governor, officials, and warehouses. It also contained churches, barracks, and a council chamber, symbolising both commercial enterprise and growing political authority. Over time, Fort St. George became the seat of the Madras Presidency and the residence of the Governor of Madras.
• Religious and Cultural Influence: The English introduced Christian institutions such as St. Mary’s Church, built in 1680, one of the oldest Anglican churches in India. The influence of European architecture, education, and culture gradually shaped the city’s identity.

Political and Strategic Importance

The establishment of Madras was not only an economic venture but also a strategic move. The seventeenth century witnessed intense rivalry among European powers, especially the English, Dutch, French, and Portuguese, for control of the Indian Ocean trade.

• Conflict and Defence: The fortifications of Madras were strengthened to defend against attacks by rival European powers and local rulers. The French occupation of Madras in 1746, during the First Carnatic War, highlighted its strategic value. However, the British regained control in 1749 through the Treaty of Aix-la-Chapelle.
• Role in Anglo-French Rivalry: Madras became a focal point of the Anglo-French conflicts in southern India during the mid-eighteenth century. The wars between Robert Clive and Joseph François Dupleix marked Madras as a central theatre of colonial struggle. Its retention by the British after these wars was crucial to their later dominance over the subcontinent.
• Centre of British Expansion in South India: From Madras, the British expanded their influence over the Deccan and the Carnatic regions. The Carnatic Wars, Mysore Wars, and later conflicts were all coordinated from this base, making Madras the operational headquarters of British southern campaigns.

Administration and Urbanisation under the Company

As the East India Company consolidated its hold, Madras transformed into a colonial administrative centre.

• Municipal Administration: Madras had one of the earliest forms of municipal governance in India. The Madras Corporation, established in 1688, was among the first civic bodies in Asia, responsible for urban management, trade regulation, and public works.
• Judicial and Political Framework: The establishment of courts and the introduction of English law followed the Company’s growing authority. The Admiralty Court and later the Mayor’s Court (1678) were among the earliest colonial judicial institutions in India.
• Population and Diversity: The settlement attracted people of various communities—English, Portuguese, Armenians, Jews, and diverse Indian castes and trades. By the eighteenth century, Madras had become a cosmopolitan city and a key node in the global maritime trade network.

Impact and Significance

The foundation of Madras had far-reaching consequences for British expansion and India’s colonial history:

• Commercial Significance: Madras became the first major English trading centre on the Coromandel Coast and one of the earliest centres of the textile export trade.
• Political Importance: Over time, Madras evolved from a trading post to a centre of colonial governance. It later served as the headquarters of the Madras Presidency, encompassing large parts of southern India, including Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala.
• Cultural Transformation: The city became a melting pot of Indian and European cultures, contributing to the early spread of Western education, language, and administrative practices.
• Foundation of British Power in the South: Madras provided the British with a secure base from which they expanded their political and military influence across southern India. It served as a model for subsequent British settlements like Bombay and Calcutta.