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How did the British East India Company gain influence as Mughal power weakened?
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Mughal dynasty
Emperors (from left, seated) Jahangir, Akbar, and Shah Jahan are depicted with their ministers (foreground) and Prince Dara Shikoh in a watercolor from India, c. 1630–40.
The British East India Company gained influence in India by exploiting the political instability and fragmentation that followed the decline of the Mughal Empire in the 18th century.12
The company’s transition from a mercantile entity to a political power was marked by several key strategies:
- Military Intervention and Alliances: The company leveraged internal conflicts among local rulers. A pivotal moment occurred at the Battle of Plassey (1757), where the British colluded with local commanders to defeat the nawab of Bengal, installing a puppet ruler.34
- Revenue Collection: Following its victory at the Battle of Buxar (1764), the company secured the diwani, or the right to collect taxes and revenues, from the Mughal emperor Shah Alam II. This provided the financial resources necessary to fund further military expansion and trade.45
- Territorial Expansion: Through a series of military campaigns, including the Mysore Wars and Sikh Wars, the company brought vast regions under direct control.31
- Indirect Rule: The company established dominance over princely states by forcing rulers to sign treaties that granted the company political authority and trade concessions in exchange for protection.1