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European trading companies were attracted to India due to its valuable goods, large markets for profit, and strategic location. Conflicts arose between the Bengal nawabs and the East India Company over trade privileges, taxation, and political interference. The Company's assumption of Diwani strengthened its control and revenue rights, while the Subsidiary Alliance diminished local rulers' independence, leading to a shift in the army's composition towards Indian sepoys under British command.

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2 views1 page

From T Tot

European trading companies were attracted to India due to its valuable goods, large markets for profit, and strategic location. Conflicts arose between the Bengal nawabs and the East India Company over trade privileges, taxation, and political interference. The Company's assumption of Diwani strengthened its control and revenue rights, while the Subsidiary Alliance diminished local rulers' independence, leading to a shift in the army's composition towards Indian sepoys under British command.

Uploaded by

rajatsohani99
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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4. What a racted European trading companies to India?

1. India produced valuable goods — spices, co on, silk — in high demand in Europe.

2. Large markets and scope for huge profits.

3. Strategic loca on on major sea routes.

5. What were the areas of conflict between the Bengal nawabs and the East India Company?

1. Misuse of duty-free trade privileges and refusal to pay taxes → revenue loss.

2. For fica on of se lements without nawab’s permission.

3. Poli cal interference, including support to rivals of the nawab.

6. How did the assump on of Diwani benefit the East India Company?

1. Gained revenue rights for Bengal, Bihar, Orissa (1765).

2. Funded army, administra on, and trade without relying on Britain.

3. Strengthened poli cal control over eastern India.

7. Explain the system of Subsidiary Alliance.

1. Ruler kept no independent army; had to host/pay Bri sh troops.

2. Needed Bri sh consent for foreign rela ons.

3. Lost poli cal independence while remaining nominal ruler.

9. Describe the changes that occurred in the composi on of the Company’s army.

1. Shi from small European force to majority Indian sepoys under Bri sh officers.

2. European-style training, discipline, and modern weapons.

3. Army expanded to conquer and control large territories.

Q.8 In what way was the administra on of the Company different from that of Indian rulers?

Aspect Company Administra on Indian Rulers’ Administra on

Structure Formal bureaucracy, fixed rules & laws O en hereditary rule, less formal systems

Revenue Regular, organised tax collec on aimed at profit Revenue o en shared with nobles, varied systems

Accountability Answerable to Bri sh govt. & shareholders Answerable mainly to local subjects/nobility

Purpose Expansion & trade profit Protec on & rule over subjects

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