Why did the East India Company become involved in the subcontinent? [7] (Past Paper, June 2001: Q1/b)

[Economic Reasons] There was enormous wealth in the subcontinent. Trade, profit and power were the real motives that East India Company (EIC) was looking at. Indian goods including spices, silk, yarn, cloth, cotton and goods of metalworkers were very demanding in the European markets. British factories needed raw materials while British merchants needed big markets like India to sell their industrial products. Cotton was the main raw material for the textile industries in Britain. EIC made huge profits and the company flourished very rapidly. By 1620, the company operated about 40 ships for trade with India. The company was having a very profitable future in trade with India. Indian soldiers at very cheap wages were available to protect their trade and profits.

[Political Reasons] East India Company had no political motives at first. It came to India primarily for trade. But the decline of Mughal Empire and the demolition of Maratha Power in 1761 by Ahmad Shah Abdali prepared the gateway for the British to take over India. Lack of a strong central government attracted the British attention for interfering with Indian political affairs. By that time, they had already got the skills of dealing with Indian rulers and merchants. Now they started thinking about establishing British Raj in the subcontinent.

[Regional Influence] India had strategic position on the globe. It would give regional supremacy to the British and Royal Navy. They would control the sea routes and hence trade with the East. The company also wanted to westernize the Indians. The British believed that western culture is superior and must be spread in the world. They thought themselves the most civilized nation of the world.