1 British East India company got the right to trade duty free by the Mughal emperor.
But the officials doing private trade refused to pay duty and taxes.

2. This caused a enormous loss to economy of Bengal.

3. The East India company now started fortifying its settlement. Nawab of Bengal asked them to stop fortifications which led to conflict between them.

4. Then the Nawab refused to grant concessions to company.

5. It demanded large tributes for companies right to trade, denied it any right to mint coins and stopped it from extending its fortifications.

6. The East India company refused to give tax and wrote to Nawab and make the cause of conflict.

7. This led to the battle of Plassey.


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The areas of conflict between the Bengal and the East India Company related to the transition from trade to territory can be categorized as:

1. Economic Exploitation: The East India Company wanted to maximize its profits and exploit the resources of Bengal to the fullest extent. They imposed heavy taxes and levies on the local population, leading to economic hardship and resentment.

2. Political Interference: The East India Company gradually started interfering in the internal affairs of Bengal. They manipulated the local rulers and installed puppet kings, causing political instability and undermining the authority of the Nawabs.

3. Revenue Collection: The Company implemented a system called the "dual administration" in Bengal, which involved collecting revenue directly from the peasants instead of the local rulers. This led to widespread corruption and extortion, as Company officials often abused their power.

4. Trade Monopoly: The East India Company established a monopoly over the trade in Bengal, controlling the production and distribution of goods. They restricted the entry of other European traders and imposed high tariffs, limiting the economic opportunities for local merchants.

5. Colonial Expansion: As the East India Company gained more control over Bengal, they started expanding their territorial influence. They annexed neighboring regions, such as Bihar and Orissa, which were traditionally part of Bengal, further fueling tensions with the local population.

6. Manipulation of Legal System: The East India Company established its own legal system in Bengal, known as the "Adalat," which often favored the Company's interests over those of the local population. This undermined the traditional legal institutions and created a sense of injustice among the people.

7. Military Confrontations: The East India Company maintained a strong military presence in Bengal to suppress any resistance or rebellion. This led to several armed conflicts, including the Battle of Plassey in 1757 and the Battle of Buxar in 1764, where the Company emerged victorious and consolidated its control over the region.

Overall, the conflict between the Bengal and the East India Company was characterized by economic exploitation, political interference, trade monopoly, territorial expansion, and military confrontations. These factors ultimately paved the way for the Company's gradual consolidation of power and the establishment of British colonial rule in Bengal.