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Company rule in India

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In 1617 the British East India Company was given permission by Mughal Emperor Jahangir to trade in India. Gradually their increasing influence led the de-jure Mughal emperor Farrukh Siyar to grant them dastaks or permits for duty free trade in Bengal in 1717. The Nawab of Bengal Siraj Ud Daulah, the de facto ruler of the Bengal province, opposed British attempts to use these permits. This led to the Battle of Plassey in 1757, in which the 'army' of East India Company, led by Robert Clive, defeated the Nawab's forces. This was the first political foothold with territorial implications that the British acquired in India. Clive was appointed by the company as its first 'Governor of Bengal' in 1757. This was combined with British victories over the French at Madras, Wandiwash and Pondicherry that, along with wider British successes during the Seven Years War, reduced French influence in India. After the Battle of Buxar in 1764, the company acquired the civil rights of administration in Bengal from Mughal Emperor Shah Alam II; it marked the beginning of its formal rule, which engulfed most of India and extinguished the Moghul rule and dynasty within the next century. The East India Company monopolized the trade of Bengal. They introduced a land taxation system called the Permanent Settlement which introduced a feudal-like structure in Bengal, often with zamindars set in place. By the 1850s, the East India Company controlled most of the Indian sub-continent, which included present-day Pakistan and Bangladesh. Their policy was sometimes summed up as Divide and Rule, taking advantage of the enmity festering between various princely states and social and religious groups.
 
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