Lecture 01: Introduction and Overview of Indian Economy

Modern History of India

Advent of Europeans in India

Commercial contacts between India and Europeans were very old via the land route but there were various shortcomings of Land-based routes like multiple taxations, theft, conflicts with tribes/kingdoms etc. Therefore in 1494, Columbus of spain started for India in search of a sea route and discovered America instead. In 1498, Vasco de Gama of Portugal discovered a new sea route from Eurpoe to India. He reached Calicut by sailing around Africa via the Cape of Good Hope. This was the first arrival of Europeans to India by Sea route.

After the decline of the Roman Empire in the seventh century, the Arabs had established their domination in Egypt and Persia. 

Direct contact between the Europeans and India declined. 

in 1453, constantinople fell to the Ottomon Turks, who were on the ascendant. Merchandise from India went to the European markets through Arab Muslim intermediaries. The Red sea trade route was a state monopoly from which Islamic rulers earned tremendous revenues. The land route to India were also controlled by the Arabs.

In 1497, under the Treaty of Tordesillas (1494), the rulers of Portugal and Spain divided the non Christian world between them by an imaginary line in the Atlantic.

Fifteenth-century Europe was gripped by the spirit of the Renaissance with its call for exploration. At the same time, Europe made great advances in the art of ship-building and navigation. Hence, there was an eagerness all over Europe for adventurous sea voyages to reach the unknown corners of the east. 

Historians have observed that the idea of finding an ocean route to India had become an obsession for Prince Henry of Portugal, who was nicknamed the 'Navigator'. Also, he was ken to find a way to circumvent the Muslim domination of the eastern Mediteranean and all the routes that connected India to Europe. 

It was in 1487 that the Portuguese navigator, Bartholomew Dias, rounded the Cape of Good Hope in Africa and sailed up the eastern coast. 

Why Europeans came to India?

1. Trade in agro-based product like cotton and handicrafts was the major reason which led to the advent of Europeans.
2. India was the major source of the spices. Some spices have antibiotic properties and they were also used to preserve the food.
3. Sea route were discovered in order to reduce conflicts, taxation etc. which were generally faced during land-based journey.

Sequence of establishments of European Companies

1. Portuguese (1498)
2. English East India Company (1600)
3. Dutch East India Company (1602)
4. Danish East India Company (1616)
5. French East Indian Company (1664)

Sequence of Arrival in India

1. Portuguese
2. Dutch East India Company
3. Danish East India Company
4. Englsih East India Company
5. French East India Company

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Portuguese

1. Vasco de gama was the first european who came to India by sea route. 
2. He reached the coast of calicut by the help of an Indian fisherman Abdul Mazid on 17 may 1498 where he was recieved by Hindu King Zamorin (Samuthiri)
3. The importance of his voyage was direct access to the pepper (black) trade
4. Second portuguese who came to India by Sea Route was Pedro Alvarez Cabral in 1500 AD in Calicut.
5. Pedro Alvarez Cabral discovered Brazil and Thomos Cook discovered Australia.
6. Pedro Alvarez Cabral founded the first portuguese factory in Calicut in 1502
7. Fransicisco de Almeida: In 1505 - King of Portugal appointed him as the governor in India.
8. He adopted the Blue water policy, also known as Cartaze system. It means strong naval power.
9. Alfonso De Albuouerque: In 1509, 2nd Portuguese governor. 
10. In 1510 he won Goa from the ruler of Bijapur, Yusuf Adil Shah. In 1661, British Prince Charles II married Portuguese Princess Chatherin and Britain got Bombay as Dowry.
11. An interesting feature of his rule was the abolition of sati system.
12. He encouraged portuguese man to marry Indian women. 

Dutch (1605)

First Factory was founded in Masulipatnam in current day Andhra Pradesh.

Battle of Bedra (1759). Under this dutch were badly defeated by the britishers and their existence in India was finished.

British

British East India company was founded by Queen Elizabeth I in 31st Dec 1600 AD.

1st British -> Captain Charles Hawkins -> Who came by the sea route. He was the ambassador of British King James I, who arrived in teh court of Jahangir in 1608.

First British factory was established in 1616 in Surat. Second British factory and first legal factory was establishd in 1611 in Massulipatnam.

Second British was Sir Thomas Roe. He was also ambassador of James I. He arrived in 1615 in the court of Jahangir.

How British become masters from Traders? 

1. Decline of Mughal Empire.
2. Birth of new states

Black Hole Incident (1756): Bengal foundation -> Murshid Quli Khan (1720 AD).

In 1756, Nawab of Bengal "Siraj ud daula" locked 146 british and because of suffocation 126 died. This incidence is called Black Hole incident. And that led to Battle of Plassey in 1757.

Battle of Plassey (1757): British east India company under the leadership of Robert Clive defeated Siraj Ud daula and captured the Bengal. This war started the British supermacy in India. 

Battle of Bedra (1759): British defeated Dutch

Battle of Wandiwash (1760): Fought between British East India Company and French East India Company. Sir Eyre coot led British and Count de lally led French. French were badly defeated by Britishers and their existence in India was over.

Battle of Buxar (1764): Nawab of Awadh (Shuja ud Daula) + Nawab of Bengal (Mir Qasim) + Mughal Emperor (Shah Alam II) vs British East India Company led by Captain hector Aungro. In this war, British defeated the combined power and this battle established British supermacy in India.