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Military might

The military course that Clive was to steer had taken its turning point in 1717 when the British East India Company was given claim to 38 villages near Calcutta in Bengal in acknowledgement of the important role they played in the continuity of international trade.

For the first time it had autonomous control within India, in villages which became known as ‘white towns’ – representing the actual and symbolic pre-eminence of the British – in terms of political power, cultural values and social practices.

These territories predictably grew into thriving commercial centres, and with this came the need to protect their position. An army of native troops – Sepoys – was formed, led by British officers and paid for entirely out of the company's Indian revenue. But th real transfer from trading venture to a ruling enterprise came with Clive's victory over the forces of the Nawab of Bengal, Siraj-ud-daulah at the Battle of Plassey in 1757.

The sepoys elevated the British to the position of power brokers, loaning out 'mercenaries' to local rulers with scores to settle.

As the power of the Moguls weakened, they were forced to barter away their real power in exchange for protection.

In debt to the company for its part in a military coup in 1757, the Mogul emperor in Bengal handed over the right to collect revenues, and in the process sealed India's fate. The company was left on the brink of bankruptcy after famine had reduced the state of Bengal to destitution and in taking on the debt the British government by default also took control of India. The Regulating Act of 1773 placed India under the rule of the governor general.

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