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It is an interesting chapter in Indian history to see how English authority in India drew their authority from 1600-1765 by virtue of charter act of the British crown, parliament, & declining power of the great moguls and other native rulers of India.

The western countries already had their trade route via Constantinople to Asian countries. After the annexation of Constantinople by Turks, the new trade route was discovered by Portuguese via a Cape of Good Hope. They commanded the Indian Ocean and established the strategic key points. The Britishers also felt ambitious in their trade aspiration and began to relish the dream of the trade association with India.

During 1600, the meeting was held by mayor of London with the merchants and resolution was passed to form an organization or association to have direct trade with India. However within such formation of association there was no assumption of sovereignty over newly discovered lands or trading ports. By virtue of Royal Charter, company/organization was authorized freely to develop the trades with the various parts of Asia and Africa. It also gave them authority and privileges to govern themselves and their servants. The small body of merchants received the royal charter from queen and constituted the English East India Company.


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