AD 1757-1857

By the mid-18th century, the Mughal empire was in decline. Regional stability disintegrated and smaller, independent, states developed, creating an environment in which individuals and companies could make huge gains from political and mercantile alliances.

In 1757 the ruler of Bengal was defeated at the Battle of Plassey with the help of the British East India Company and in 1764 the Company was granted the right to collect revenue across Bengal by the Mughal emperor Shah Alam II (1759-1806). The Company continued to grow in political power, wealth and military strength, getting most of its income from taxes and revenues from the areas it controlled.

By 1783 the Company was effectively under the control of the British government and its dominions increased. Although the Mughal dynasty, now merely a figurehead, was retained, the formidable Tipu Sultan of Mysore was defeated in 1799. The area under British control was further extended in the 1820s with incursions into Assam and the annexation of numerous territories including Jhansi (1854) and Oudh (1856).

In 1857 soldiers from the Bengal Army mutinied and marched on Delhi, encouraging wide-scale civilian rebellion. British forces regained control, but the Mutiny had a profound effect on Anglo-Indian relations and resulted in the transfer of authority in India from the Company to the British Crown in 1858.