The expansion of Company Rule refers to the 18th and 19th-century period when the British East India Company extended its control over Indian territories. This era marked a significant shift from trade to direct governance, impacting India’s political, economic, and social landscape, ultimately laying the groundwork for British colonial rule.

Gradual Expansion of Company

Through Diplomatic Means: East India Company from 1757 to 1857 used a variety of  political, economic and diplomatic methods to extend its influence before annexing an Indian kingdom.

Tools Used by Company

Residents in Indian States:After the Battle of Buxar in 1764, the Company appointed Residents in Indian states, who served as political or commercial agents to advance the Company’s interests,

• Interference in Internal Affairs: Through the Residents, the Company officials began interfering in the internal affairs of Indian states, including decisions on succession and administrative appointments.
• Subsidiary Alliances: Under the alliance Indian rulers were not allowed to have their independent armed forces.
• • Maintenance Charges: Company provided protection but charged for maintaining “subsidiary forces.” 
  • Penalty: Failure to make payments resulted in the loss of territory as a penalty.
  • Example: During Richard Wellesley’s time as Governor-General (1798–1805), the Nawab of Awadh lost over half of his land to the East India Company in 1801 for failing to pay for “subsidiary forces.” 
  • Hyderabad faced similar territorial losses under similar circumstances.

Anglo-Mysore Conflict

Reasons for Anglo-Mysore conflicts

• Powerful Leadership: Mysore had become a powerful state under leaders like Haidar Ali (ruled 1761-1782) and his son Tipu Sultan (ruled 1782-1799).
• Economic Superiority: Mysore controlled the lucrative trade of the Malabar coast, where the Company purchased valuable commodities like pepper and cardamom.
• Trade Routes: Hence Mysore commanded trade through these ports and also prohibited local merchants from trading with the Company.
• Affair with French: Tipu established close relationships with the French in India, and modernized his army with their help.

• Result of the War:
  • Four Wars: The British perceived Haidar and Tipu as ambitious and dangerous rulers who needed to be controlled and subdued, leading to four wars with Mysore (1767–69, 1780–84, 1790–92, and 1799).

• • Company Emerged Victorious: The Company was victorious in the Battle of Seringapatam, where Tipu Sultan was killed while defending his capital.
  • Revival of Wodeyars: Mysore was placed under the former ruling dynasty of the Wodeyars and a subsidiary alliance was imposed on the state.

War with the Marathas

Political Structure: The third Battle of Panipat in 1761, shattered Maratha ambition of ruling from Delhi.

• Fractional State: The Marathas were divided into multiple states led by different chiefs (sardars) from dynasties like Sindhia, Holkar, Gaikwad, and Bhonsle.
• Rule of Peshwa: These chiefs were held together in a confederacy under a Peshwa (Principal Minister) who became its effective military and administrative head based in Pune.
• A Series of Wars:
  • The first war, ending in 1782 with the Treaty of Salbai, resulted in no clear victor.
  • Second Anglo-Maratha War (1803–05): It fought on different fronts, led to the British gaining Orissa and territories north of the Yamuna River, including Agra and Delhi.
  • Third Anglo-Maratha War (1817–19): Company crushed Maratha power, leading to the removal of the Peshwa, who was sent to Bithur in Kanpur with a pension, also Company gaining control over territories south of the Vindhyas.

Conclusion

The East India Company’s gradual expansion, using diplomatic tools like Residents and Subsidiary Alliances, alongside military victories in conflicts like the Anglo-Mysore Wars and Anglo-Maratha Wars, laid the foundation for a vast British colonial empire in India. This political dominance significantly reshaped the subcontinent’s social and economic landscape.