Q. The shift in the core objective of the English East India Company (EIC) from a purely commercial entity to a territorial power in India was primarily due to:
1.The need to secure local political support to end the constant abuse of the Dastak (free trade passes) by Company officials for private trade.
2.The realization that political dominance was the only way to safeguard trade interests against European rivals and to ensure exclusive access to the profitable textile markets.
3.The pressure from British manufacturers, who demanded territorial conquest to stop the import of Indian finished goods and promote the export of raw materials from India.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Explanation:

  • Statement 1 is incorrect. The abuse of the Dastak was a symptom of the EIC’s growing power and a cause of friction with the Nawabs, but the EIC’s goal was to maintain the abuse and the associated privileges, not to end it. It was the Nawabs who wanted to curb the abuse to protect their revenue.
  • Statement 2 is correct. The failures of the French proved that only political control could guarantee commercial monopoly (exclusive access to goods at low prices) and security in a fragmented India.
  • Statement 3 is incorrect. This pressure emerged much later (early 19th century) with the Industrial Revolution. In the mid-18th century, the EIC’s primary motive remained the export of finished Indian textiles to Britain and other markets.
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