Module 19. European Trade and Conquest

The entry of European powers into India from the late 15th century marked a new chapter in the subcontinent’s history, linking it directly to the emerging global network of commerce and colonialism. The period between the 15th and 18th centuries witnessed intense European competition for trade and political dominance in India, culminating in the establishment of British colonial rule. What began as commercial enterprise gradually evolved into military conquest and political subjugation, reshaping India’s economy, society, and governance.

Background: The Age of Exploration

The closing years of the 15th century were an era of maritime exploration in Europe. Motivated by the search for new trade routes to Asia, particularly for the lucrative spice trade, European nations such as Portugal, Spain, Holland, France, and England embarked on ambitious voyages. The fall of Constantinople (1453) to the Ottomans had disrupted traditional overland trade routes between Europe and Asia, prompting seafaring nations to seek direct access to the Indian Ocean trade network.
The discovery of the Cape of Good Hope route (1498) by the Portuguese navigator Vasco da Gama marked the beginning of direct maritime contact between Europe and India, ushering in a new age of global interaction.

The Portuguese in India (1498–1739)

1. Arrival and Early Settlements: Vasco da Gama arrived at Calicut (Kozhikode) on the Malabar coast in 1498, welcomed by the Zamorin, the local ruler. Subsequent expeditions under Pedro Álvares Cabral (1500) and Francisco de Almeida (1505) consolidated Portuguese trade through the establishment of fortified settlements at Cochin, Cannanore, and Goa.
2. The Estado da Índia: Under Afonso de Albuquerque (1509–1515), the Portuguese expanded their dominance by capturing Goa (1510), Malacca (1511), and Hormuz (1515). These conquests gave them control over the strategic chokepoints of the Indian Ocean. Goa became the capital of their Indian empire, known as the Estado da Índia.
3. Trade and Administration: The Portuguese sought monopoly over the spice trade, enforcing the cartaz (naval pass) system to control maritime commerce. They traded in pepper, cloves, cinnamon, textiles, and horses. Missionary activities accompanied trade, leading to widespread conversion in Goa and parts of the western coast.
4. Decline: Portuguese power declined in the 17th century due to internal corruption, competition from the Dutch and English, and military defeats. The capture of Goa by the Marathas (1739) marked the end of their major influence, although Portugal retained Goa, Daman, and Diu until the 20th century.

The Dutch in India (1605–1795)

1. Establishment of the Dutch East India Company (VOC): The Dutch East India Company was formed in 1602 to challenge Portuguese dominance. The Dutch arrived in India in 1605 and established trading posts at Masulipatnam, Pulicat, Nagapattinam, and later at Chinsurah in Bengal.
2. Trade and Economic Activity: Their main interests lay in the spice trade of the East Indies (Indonesia). In India, they traded in textiles, saltpetre, and indigo. Pulicat served as their capital until it was shifted to Nagapattinam.
3. Decline: The Dutch influence declined after their defeat by the English at the Battle of Biderra (1759) and the growing dominance of the British in Bengal. By the late 18th century, they had retreated primarily to the Indonesian archipelago.

The English in India (1600–1858)

1. Formation of the English East India Company: The English East India Company was founded in 1600 by a royal charter from Queen Elizabeth I. The first English voyage under Captain William Hawkins reached the court of Jahangir (1609), but failed to secure trade privileges.
2. Early Settlements: Through Sir Thomas Roe’s embassy (1615–1619), the Company obtained farmans granting trading rights. The English established factories at Surat, Madras (Fort St. George), Bombay (1668), and Calcutta (1690), which later became major centres of British power.
3. Trade Expansion: Initially focused on trade in textiles, indigo, saltpetre, and spices, the Company gradually gained political influence. By the 18th century, it had emerged as both a commercial and territorial power.
4. Transition to Political Power: The decline of the Mughal Empire after Aurangzeb’s death and the subsequent regional fragmentation enabled the Company to interfere in local politics.

• The Battle of Plassey (1757) and Battle of Buxar (1764) established British supremacy in Bengal.
• The Diwani rights (1765) granted by Mughal Emperor Shah Alam II formalised Company control over Bengal’s revenue.
• By the late 18th century, under Governor-General Warren Hastings and Lord Wellesley, the Company extended its authority over much of India through subsidiary alliances and wars.

The French in India (1664–1761)

1. Foundation of the French East India Company: The Compagnie des Indes Orientales was founded in 1664 under Colbert, minister of King Louis XIV, to compete with the English and Dutch.
2. French Settlements: The French established trading centres at Surat, Masulipatnam, Chandernagore, Pondicherry, and Karaikal. Pondicherry became the capital of French India.
3. The Carnatic Wars (1746–1761): The Anglo-French rivalry in India culminated in a series of military conflicts known as the Carnatic Wars.

• First Carnatic War (1746–1748): Triggered by the Anglo-French conflict in Europe; the French captured Madras but returned it under the Treaty of Aix-la-Chapelle.
• Second Carnatic War (1749–1754): French leader Dupleix supported local claimants to Indian thrones, but British intervention under Robert Clive ended in French defeat.
• Third Carnatic War (1758–1761): The decisive British victory at Wandiwash (1760) ended French political ambitions in India.

Though the French retained minor possessions like Pondicherry and Chandernagore, British dominance became unchallenged after 1761.

Other European Powers

1. The Danes: The Danish East India Company established settlements at Tranquebar (1620) and Serampore (1755). Their role remained limited, focusing on trade in textiles and spices.
2. The Spanish: The Spanish influence in India was negligible, restricted to the Philippines and Southeast Asia, as they concentrated on their American colonies.

Impact of European Trade

1. Economic Changes: European trade integrated India into the global commercial system. Indian textiles, indigo, and spices became highly sought after in Europe, while European goods and silver entered Indian markets. However, over time, the commercial relationship turned exploitative, with the British draining wealth through monopolistic control and taxation.
2. Political Transformation: European rivalries reshaped Indian politics. The English East India Company’s gradual shift from trade to conquest transformed India into a colonial economy. The Battle of Plassey (1757) marked the beginning of British imperial rule, leading eventually to the establishment of the British Raj (1858).
3. Cultural Exchange: The European presence facilitated cultural and technological exchanges—introducing new crops (potato, maize, tobacco), navigation techniques, and printing technology. Missionary activities introduced Western education, though often accompanied by cultural domination.
4. Maritime Supremacy and Globalisation: The European conquest of the Indian Ocean trade displaced traditional Arab, Persian, and Indian traders, establishing European maritime hegemony. This shift marked the beginning of global economic integration under European control.

Legacy and Historical Significance

The European trade and conquest of India signified a turning point in world history. What began as commercial contact evolved into political subjugation and economic exploitation. The Portuguese introduced maritime dominance; the Dutch and French competed for commerce; and the British ultimately converted trade monopoly into imperial rule.