The British Colonization in Indian
Introduction
East India Company, also known as The Honorable East India Company, British East India Company, was a joint-stock company established by the British. On Dec. 31th, 1600, the company was chartered by the Queen Elizabeth as the Governor and Company of Merchants of London trading into the East Indies (Chaudhuri, 2006). The charter in fact gave East India Company a monopoly right for twelve years. During its rule in India, the company not only owned economic monopoly but also assisted the British to realize military expansion. There will first be a discussion about how East India Company assisted British to realize its military expansion in India. Following that, there will be a discussion on how East India Company works as an economic tool of colonial expansion for Britain. Finally, there will be a discussion on how East India Company finally led to the backwardness of the country as well as disaster of the local people.
Military expansion
The British colonization in India is actually a military expansion, which not only struck some other foreign colonial powers but also led to the elimination of local rulers (Nicholas, 1992). As a result, the colonization in fact had made a preparation for the later centralization of authority. The French army was defeated in the Seven Years’ War in India. As a result, the French no longer dear to expand its power in India, which also prevented the development of its industrial revolution. Robert, on behalf of the East India Company, defeated Joseph Francois Dupleix, a representative of the French army in India, and won Fort St George from the French (Thorpe, 2010)
. In 1763, The Treaty of Paris was signed which stipulated that the five establishments that were won by the British in the war were owned by France again. However, it was not allowed for the French to build fortifications. Their army can only be kept in Bengal. In the next 200 years, even though there are still several places that remained to be the possessions of France. The French power in India was no longer a threat for Britain. As a result, the only economic competitor was removed from India, leaving Britain the only one to exploit Indian. What was more, free from other colonial threat, East India Company was able to expand its power to other regions from its base at Madras and in Bengal from Calcutta because it had owned a well-trained and experienced army. Other than eliminating the foreign colonial powers from other countries, East India also strengthened its power by getting the upper hand in wars between the company and the local rulers. During its military expansion, the company encountered obstacles from the local people in India. Robert led the company to defeat the last independent Nawab of Bengal, Bihar and Midnapore district in Odisha in 1757 at the Battle of Plassey(Thorpe, 2010). The victory of East India Company was a heavy strike for the local rulers. As a result, Bengal was conquered, which led to the deterioration of the relationship between the British and the Mughals. In addition, the Marathas were also defeated after three wars between the British and the Marathas, even though they had realized the threat from the company gradually (Thorpe, 2010). Consequently, the British then occupied Ganges-Jumna Doab, parts of Bundelkhand, the Delhi-Agra region, some regions of Gujarat, province of Cuttack, Mumbai and the peripheral regions, which put an end to the ruling of Maratha empire and further consolidated the power of East India Company in that area. Therefore, the elimination of foreign powers as well as local rulers had facilitated the ruling of East India Company, which also made a preparation for the future centralization of authorization in India.

Economic plundering
East India Company is an economic tool of colonial expansion for Britain, which on had collected millions of wealth for the British royal. At that time, economist –Adam Smith (2009), published his book-The Wealth of Nations. In his book, he wrote,” the Old East India Company was established under the charter of Queen Elisabeth. In the first twelve voyages, all the capitals belonged to correspondent individuals except the ships. It was like a company that was combined by several subsidiaries. ” From What Adam Smith had wrote, it can be inferred that East India Company was the initial joint-stock company, even though it was not as mature as the company in our times. At that time, every time before the company started a voyage, capitals were collected. Once the voyage was over, the capitals were paid back to each investor. The profit that was gained during the voyage was distributed in accordance with the capital that the investors had invested. In the middle of 17th century East India Company became mature, which is a Limited Liability Joint Stock Company. In the administrative institution of oriental trade, the decisions were made by all the members of the board so that they can supervise each other. As for the personal system, in order to be scientific, the managers were selected from those who had done grass-roots work for more than 15 years. This mechanism worked well in keeping the company from being addicted in corruption and bribery. If the oversea trade company was only a tool for British royal to exploit money, it would not bring that much profit to Britain. Neither would it lead to great reformation in Britain. It was its special mechanism that finally led it to the development of the company. At the first 12 voyages, the company had gained great fortune with one of them reaching 1500%. The tremendous profit had encouraged the passion of investors and more investment was appealed in the company. From 1607-1757, the trade of East India Company covered various fields and the profit was quite fruitful. The shareholders of the company can get about 20% dividends. Sometimes, it can reach 50%. Consequently, the stock of the company kept increasing (Chaudhuri, 2006; p166). At 1669, the price of 100 pounds of dividends was 130 pounds; in 1677, it reached 245 Pounds; in 1683, it boosted to 360 pounds (Sinha & Banerjee, 1963, p49). Therefore, East India Company is a tool of colonial expansion of Britain. The encouraged ambition of British merchants had helped to collect millions of wealth from India.

Destroy life of local people
The British colonization in India also had great influence on the local industries, which led to the backwardness of the country as well as disaster of the local people. One of the most significant is that the colonization had destroyed the traditional handicraft industry in India. The handmade textile industry used to be the advantageous industry in India, which kept local people affluent and wealthy (Rachna S, 2002). However, before the Industrial Revolution occurred at the end of the 18th century, the Indian handcraft which used to be prestigious and famous all over the world had been on the edge of extinguishing. British colonization struck the Indian handmade textile industry deeply. It left thousands of handicraftsman starved to death because millions of them had lost their source of income. A great number of people starved to death because they were lack of money. This kind of catastrophe was quite rare and unprecedented in the world history. According to an official in East Indian Company, the bones of weavers had bleached the plain of India. What was worse, the British colonization also led to the starvation of India. In order to gain as much profit as possible, East India Company tried every means to collect money from the people. During its rule in the east of India, it had raised the tax for two times. As a result, the people had nothing to eat because all the money they owned was collected by the company. Consecutive starvation occurred. In 1770, the starvation in Bangladesh had led to the death of a lot of people. From 1769 to 1770, the British stored a lot of rice, announcing that unless the Indian would give an extraordinarily high price, otherwise, they would not sell the rice. Consequently, another starvation was thus generated. Millions of people had died in the intentional starvation that East India Company had made. Before the European countries had come to India, it used to be one of the most affluent countries in the world. However, once it became a colony of Britain, India became a backward country which was looked down upon by most western countries. To sum up, the colonization of Britain in India on the one hand struck the local industries deeply on the one hand and led to the starvation of local people by collecting any profit that they could imagine on the other hand.
Conclusion
To sum up, during East India Company’s rule in India, it not only gained economic monopoly in India, assisted the British to realize military expansion and led to the backwardness of the country as well as disaster of the local people. This essay mainly discusses the essence of British colonization in India. The encouraged ambition of British merchants had helped to collect millions of wealth from India. The colonization of Britain in India on the one hand struck the local industries deeply on the one hand and led to the starvation of local people by collecting any profit that they could imagine on the other hand.

Reference
Adam S, (2009), The Welth of Nations, Digireads. Com Publishing.
Chaudhuri, K, N (2006), The trading world of Asia and the English East India Company: 1660-1760, UK: Cambridge University Press. P 19, p166
Nicholas B.D, (1992), Colonialism culture- the comparative study in society and history book series, US: University of Michigan Press. P 253
Rachna S, (2002), Together with economics, New Delhi: Rachna Sagar.
Sinha N. K & Banerjee A. C, (1963), History of India, Calcutta, p49
Thorpe, (2010), The pearson guide to the central police forces examination, 2/E, India: Pearson Education India. P 316