After Aurangzeb’s death, the Bengal Nawabs came into power. They refused to give the Company concessions and asked for tributes in exchange for conducting trade in the state. They also denied the Company any rights to mint coins and asked them to stop the construction of further fortifications.
The Company tried to make the situation favourable for itself by stating that trade could only be profitable if there were no taxation. It also said that the construction of settlements and fortifications was necessary for the expansion of trade. When both the parties couldn’t come to a conclusion, the conflicts led to the infamous Battle of Plassey. On June 23, 1757, the historic battle of Plassey took place between Siraj-ud-daulah, the Nawab of Bengal, and the British East India Company.
Afraid of losing control, the Company was desperately looking for a puppet ruler to take more control in the Bengal area. Meanwhile, in 1756, Nawab Alivardi Khan, died making Siraj Ud Daulah the Nawab of Bengal.
Unfortunately for the English, Siraj Ud Daulah gained control of the English factory at Kasimbazar and then ventured to Calcutta to capture the Company’s fort. Robert Clive, who was the Company’s head, sent officials to Madras in hopes of negotiations.
In 1757, after prolonged attempts at coming to a settlement, Clive led his army against Siraj Ud Daulah at Plassey. Robert Clive had secured his win by turning one of Siraj Ud Daulah’s ministers Mir Jafar against him, by promising him the seat of the Nawab after the Company’s win. The Battle of Plassey marked one of the first significant victories of the East India Company. After the defeat in the Battle of Plassey, Siraj Ud Daulah was assassinated, and Mir Jafar became the new Nawab.
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Since the nawab was not cooperative enough, they cannot afford to lose their sovereignty and dignity as they want to be respected. What can be the next possible step?After Mir Jafar started to protest, the Company decided to depose him and install Mir Qasim. Later, he was also defeated in 1764 during the battle at Buxar, which reinstalled Mir Jafar. Although the Nawab was already paying a hefty sum of Rs 500000 to the Company, still they were looking for money to manage finance and fulfill the emerging trade demands.Soon after the Battle of Buxar in 1764, Mir Kasim died. By this time, the Company was changed, and Clive declared: “We must indeed become nawabs ourselves.”
The Company was allowed Bengal’s Diwani rights. This solved the Company’s financial problems to a greater extent. Later, in the 18th century, trading with India drastically multiplied. But they were bound to buy Indian goods with silver or gold.After the Battle of Plassey, the outflow of gold from Britain slowed, and it was put to breaks after Diwani assumption. Silk and cotton textile was purchased with this revenue in India. Apart from this, it was used to maintain the troops and the cost involved in the construction of company offices and forts in Calcutta.
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The Battle of Plassey was fought between Nawab of Bengal, Siraj-ud-daulah and the British East India Company on June 23, 1757, at Plassey near Murshidabad. In the end, the Nawab of Bengal himself was betrayed, caught, and killed by Mir Jafar, who was then instituted as the new Nawab of Bengal.