INSIGHT UPSC QUIZ

GS History Modern India
Q.

With reference to the English East India company, consider the following statements:

1. It was established as a joint stock company by a royal charter.

2. It was given monopoly of all trade from England to the East.

3. It established first factory in India at Surat.

Which of the statement(s) given above is/are correct?

Explanation:

Statement 1 is correct: The English East India Company was founded by a royal charter on 31 December 1600, as a joint stock company of London merchants uniting to combat Dutch competition in Eastern trade.

Statement 2 is correct: It was given monopoly of all trade from England to the East and was permitted, even in an age dominated by mercantilist ideas, to carry bullion out of the country to finance its trade. It was not, however, given any overt mandate at that time to carry on conquest or colonisation. The Company formally started trading in India from 1613 after settling scores with the Portuguese, who had arrived at the scene earlier.

Statement 3 is correct: A farman from Mughal emperor Jahangir gave them permission to establish their factories or warehouses in India, the first factory being set up in Surat in the western coast.

Thus, Option D is Correct.

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