About the Topic:The arrival of the European trading companies marked a critical turning point that completely reshaped the political, economic, and cultural landscape of the Indian subcontinent. Driven by the lucrative spice trade and mercantilist ambitions, the Portuguese, Dutch, English, Danish, and French East India companies established a complex network of coastal factories, fortified warehouses, and strategic ports. What began as a purely commercial race quickly escalated into fierce naval rivalries, territorial expansion, and deep involvement in regional Indian politics. As local empires fractured, the English East India Company systematically eliminated its European competitors through decisive conflicts like the Carnatic Wars and the Battle of Bedara. By weaponizing advanced military tactics, entering strategic local alliances, and enforcing aggressive monopolistic trade policies, the British transitioned rapidly from humble merchants to sovereign rulers. Landmark confrontations—most notably the Battle of Plassey in 1757 and the Battle of Buxar in 1764—solidified this shift, laying the structural foundations for two centuries of colonial rule. This curated MCQ module is designed to test your grasp on both micro-level facts (such as early factory timelines, royal charters, and historical treaties) and macro-level conceptual shifts in colonial administration. Mastering these curated practice questions will help you confidently navigate the statement-based patterns typical of competitive examinations like the UPSC Civil Services, State PCS, CDS, and NDA.
The secret of success of East India Company in India was :
Correct Answer:
(D)
All the above three
All the three factors were helpful in the success of East India Company in India. It is known that a group called Merchants Adventures in England formed East India company or ‘The Governor and company of Merchants trading into the East Indies.’ In December 1600, Queen Elizabeth of England granted a royal charter to do business with the East for 15 years.
Ques: 2
Where in India did Britishers set up their first factory in 1613?
Correct Answer:
(D)
Surat
Captain William Hawkins reached Mughal Court from Surat in 1608 but did not succeed in getting permission to set up a factory. Despite Portuguese antagonism, Captain Middleton landed at Sowlley near Surat and succeeded in getting permission for trade by Mughal Governor. Captain Best dissolved the Portuguese monopoly with the victory of Surat port. Consequently, the British established a permanent factory in 1613. They expanded their trade to other parts of India and established cooperative factories in Ahmedabad, Burhanpur, Ajmer and Agra immediately.
Ques: 3
In the first quarter of seventeenth century, in which of the following was/were the factory/factories of the English East India Company located?
Broach
Chicacole
Trichinopoly
Select the correct answer using the code given below.
Correct Answer:
(A) 1 only
Establishment of Factories by East India Company in first quarter of 17th century –
Agra, Ahmedabad, Baroda and Broach by 1619.
Masulipatnam in 1611 and Armagaon in 1626.
Hariharpur and Balasore (in Orissa) in 1633 and Hugli in 1651.
Ques: 4
Bombay was taken over by the English East India Company from –
Correct Answer:
(D)
The Portuguese
Bombay was given as a dowry gift by the Portuguese Crown to the British when H.M. Charles II, the King of England married Catherine of Braganza, the Princess of Portugal in 1661. Charles II gave Bombay to British East India Company on 10-pound annual rent in 1668.
Ques: 5
Which English Governor of East India Company in India was expelled by Aurangzeb –
Correct Answer:
(B) Sir John Child
The British Governor of Bombay, John Child, cordoned off Mughal ports of Bombay and Western coastal areas in 1688 and tried to capture Mecca pilgrims. As a result of which Aurangzeb ordered to expel him from India. He was forced to negotiate for peace and bent to his knees before the Mughal Emperor.
Ques: 6
Which one of the following rulers had granted Diwani to the East India Company ?
Correct Answer:
(C) Shah Alam- II
As per the second Treaty of Allahabad (August 1765), the Mughal Emperor Shah Alam II was taken under the Company’s protection and was to reside at Allahabad. He was assigned Allahabad and Kada ceded by the Nawab of Oudh. The Emperor issued an order dated 12th August, 1765 granting Company the Diwani of Bengal, Bihar and Orissa in return the Company had to make an annual payment of Rs 26 Lakhs to him and provided Rs 53 Lakhs for the expenses of the Nizamat. During this time Robert Clive was Governor of East India Company in Bengal. The emperor’s order legalized the political authority of Company in Bengal and British rule expanded all over India including Delhi. Successors of Shah Alam II i.e., Akbar II (1806-37) and Bahadurshah II (1837-57) became pensioners of East India Company. Therefore, the Company appointed two Diwans- Mohammad Raza Khan for Bengal and Raja Shitab Rai for Bihar. Thus, all business of Diwani and Nizamat was conducted by Indians but authorized by the British Company.