(i) The first English factory was set up on the banks of the river Hugli in 1651.
(ii) A factory had a warehouse where goods for export were stored and were sold later by the British East India Company.
(iii) The Bengal Nawabs refused to grant trade concessions to the Company. They demanded large tributes against the Company's rights to trade, denied it any right to mint coins and stopped it from extending its fortifications

(i) Warren Hastings was the first Governor-General of Bengal. He introduced many administrative reforms, notably in the sphere of justice.
(ii) In his ten-year tenure, Warren Hastings greatly extended and regularized the Company's rule in India. He resigned in 1784. When Warren Hastings went back to England in 1785, Edmund Burke charged him of being personally responsible for high crimes and misdemeanors in Bengal. He was impeached in 1787 in the British Parliament that lasted seven years. Hastings spent most of his wealth on his defence.

(i) The problem was that all the companies were interested in buying the same things.
(ii) The fine qualities of cotton and silk produced in India had a big market in Europe. Pepper, cloves, cardamom and cinnamon too were in great demand.
(iii) Competition amongst the European companies inevitably pushed up the prices at which these goods could be purchased, and this reduced the profits that could be earned.
(iv) The only way the trading companies could flourish was by eliminating rival competitors.
(v) The urge to secure markets therefore led to fierce battles between the trading companies

The EIC used various political, economic and diplomatic methods to expand its rule in India:
(i) Direct Annexation: At times, British fought direct wars. e.g. State of Punjab w~s annexed after the death of Punjab king Maharaja Ranjit Singh.
(ii) Appointment of Residents : EIC residents began interfering in internal affairs deciding as to which person has to be appointed at political or administrative posts.
(iii) Doctrine of Lapse : It was a policy made by lord Dalhousie. The doctrine declared that if an Indian ruler died without a male heir, his kingdom would 'lapse', and would become a part of Company's property, e.g., Udaipur, Jhansi.
(iv) Introduction of 'Subsidiary Alliance' : According to the terms of subsidiary alliance, Indian rulers were not allowed to have their independent armed forces. They were to be protected by the company. Also, they had to pay for the 'subsidiary forces' that the company was supposed to maintain for the purpose of their protection. If the Indian rulers failed to make the payment, then a part of their territory was taken away as penalty. 

(i) Sirajuddaulah refused to grant concessions to the Company, demanded large tributes for the Company's right to trade, denied it any right to mint coins, and stopped it from extending its fortifications.
(ii) Accusing the Company of deceit, he claimed that the Company was depriving the Bengal government of huge amounts of revenue and undermining the authority of the Nawab.
(iii) The Company was refusing to pay taxes, writing disrespectful letters, and trying to humiliate the Nawab and his officials.
Events :
(i) After negotiations failed, the Nawab marched along with 30,000 soldiers to the English factory at Kasim bazar, captured the Company officials, locked the warehouse, disarmed all Englishmen, and blocked English ships.
(ii) Then he marched to Calcutta to establish control over the Company's fort. On hearing the news of the fall of Calcutta, Company officials in Madras sent forces under the command of Robert Clive, reinforced by naval fleets.
(iii) Prolonged negotiations with the Nawab followed. Finally, in 1757, Robert Clive led the Company's army against Sirajuddaulah at Plassey
(iv) One of the main reasons for the defeat of the Nawab was that the forces led by Mir Jafar, one of Sirajuddaulah's commanders, never fought the battle. Clive had managed to secure his support by promising to make him nawab after crushing Sirajuddaulah.
Consequences :
(i) The Battle of Plassey became famous because it was the first major war that the Company had won in India.
(ii) After the defeat at Plassey, Sirajuddaulah was assassinated and Mir Jafar was made the nawab. The Company was still unwilling to take over the responsibility of administration. Its prime objective was the expansion of trade.

Beginning of trade in Bengal by East India Company
(i) The first English factory was set up on the banks of the river Hugli in 1651. This was the base, from which the Company traders, known at that time as "factors", operated.
(ii) The factory had a warehouse where goods for export were stored, and it had offices where company officials used to sit. As trade expanded, the company persuaded merchants and traders to come and settle near the factory.
(iii) By 1696, it began building a fort around the settlement. Demands put up by East India Company:
(i)Two years later, EIC bribed Mughal officials to give the Company, zamindari rights over three villages.
(ii) One of these was Kalikata, which later grew into the city of Calcutta or Kolkata (as it is known today).
(iii) It also persuaded the Mughal emperor Aurangzeb to issue a farman, granting the Company the right to trade duty free.

(i) In 1600, the East India Company required a charter from the ruler of England, Queen Elizabeth I, granting it the sole right to trade with the East.
(ii) This meant that no other trading group in England could compete with the East India Company. (iii)With this charter, the company could venture across the oceans, looking for new lands from which it could buy goods at a cheaper price, and carry them back to Europe to sell at higher prices.
(iv) The company did not have to fear competition from other English trading companies

The English developed a strong army due to the following reasons :
(i)The army was needed to establish control upon the vast empire.
(ii) It was also required to suppress internal revolts against the British.
(iii) The army consisted of Indian soldiers who were known as sepoys.
(iv) The army was well disciplined, well trained and regularly paid.

When the handle of the toy was turned, the toy tiger roared and the soldier shrieked. 

Governor -General Lord Hastings (1813-1828) introduced a new policy of paramountcy' in India. It meant that the power of the Company was paramount or supreme, i.e. the power of the Company was greater than that of Indian states. In order to protect its business interest, the Company could annex or threaten to annex any Indian kingdom.
This policy of the British was followed by the later rulers. But this policy of the British did not go unchallenged. For example, when the British tried to capture the small state of Kitoor, Rani Channamma revolted against this annexation. As a result, she was arrested and later died in the prison in 1829. This resistance movement did not stop. It was carried on by Rayanna, a poor chowkidar of Sangoli in Kitoor.
He got support from the common people and destroyed many British camps and records.In 1830, he was caught and hanged by the British