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In 1691 the East India Company was granted exemption from the payment of custom duties in return for Rs. 3,000 a year in
- a)Bihar
- b)Bengal
- c)Orissa
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In 1691 the East India Company was granted exemption from the payment ...
Historical Context
In the late 17th century, the British East India Company was expanding its influence in India, particularly in the Bengal region.
Exemption from Duties
In 1691, the East India Company negotiated a significant deal with the Mughal Empire that exempted it from paying custom duties. This arrangement was crucial for the Company's trade operations and profitability.
Details of the Agreement
- The Company agreed to pay Rs. 3,000 annually to the Mughal Treasury.
- This payment allowed the Company to conduct trade without the burden of customs duties, which would have otherwise increased their operational costs.
Bengal's Importance
- Bengal was a rich province known for its lucrative trade in textiles, spices, and other commodities.
- The exemption facilitated the Company's ability to monopolize trade and establish a strong economic foothold in the region.
Impact on Trade
- The duty exemption significantly boosted the Company's profits.
- It also enabled the East India Company to outcompete local merchants and other European traders.
Conclusion
The agreement made in 1691 marked a pivotal moment in the East India Company's history, particularly in Bengal. It not only highlighted the Company's growing power but also set the stage for its eventual dominance in India. The exemption from customs duties was a strategic move that benefited the Company immensely, allowing for increased trade and expansion in one of India's most prosperous regions.
In the late 17th century, the British East India Company was expanding its influence in India, particularly in the Bengal region.
Exemption from Duties
In 1691, the East India Company negotiated a significant deal with the Mughal Empire that exempted it from paying custom duties. This arrangement was crucial for the Company's trade operations and profitability.
Details of the Agreement
- The Company agreed to pay Rs. 3,000 annually to the Mughal Treasury.
- This payment allowed the Company to conduct trade without the burden of customs duties, which would have otherwise increased their operational costs.
Bengal's Importance
- Bengal was a rich province known for its lucrative trade in textiles, spices, and other commodities.
- The exemption facilitated the Company's ability to monopolize trade and establish a strong economic foothold in the region.
Impact on Trade
- The duty exemption significantly boosted the Company's profits.
- It also enabled the East India Company to outcompete local merchants and other European traders.
Conclusion
The agreement made in 1691 marked a pivotal moment in the East India Company's history, particularly in Bengal. It not only highlighted the Company's growing power but also set the stage for its eventual dominance in India. The exemption from customs duties was a strategic move that benefited the Company immensely, allowing for increased trade and expansion in one of India's most prosperous regions.
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In 1691 the East India Company was granted exemption from the payment of custom duties in return for Rs. 3,000 a year ina)Biharb)Bengalc)Orissad)None of theseCorrect answer is option 'B'. Can you explain this answer?
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