Class 8 Social Science (CTET Paper 2)Critical (2–3 MCQs guaranteed)9 min read

Chapter 2: From Trade to Territory: Company Power Established

व्यापार से साम्राज्य तक (प्लासी का युद्ध 1757, बक्सर 1764, सहायक संधि, टीपू सुल्तान एवं विलय नीति)

CTET Theme: Colonial Expansion, Imperial Treaties & Military Conquests
CTET Medium / परीक्षा माध्यम:
CTET On-the-Go Audio NotesHands-Free Revision
Listen to high-yield NCERT facts & CBSE traps without staring at the screen
OVERVIEW1 of 19
Introduction: From Trade to Territory: Company Power Established
Welcome to Mentora CTET Audio Masterclass for Class 8 Social Science (CTET Paper 2), Chapter 2: From Trade to Territory: Company Power Established. Here are the high-yield facts tested in CBSE examinations.
Aspirant Revision Toolkit:
1-Page PDFCBT Drill
Offline Pen-and-Paper Exam Readiness

Don't Let a 20-Minute Bubbling Delay Cost You CTET Qualification

In offline CTET exams, bubbling 150 bubbles takes 18 to 22 minutes of mechanical time. A single misaligned row can trigger an 8-question domino error. Practice bubble-filling this chapter's solved MCQs inside Mentora's official OMR simulator.

150-Question CBSE Specimen Grid
Real-time Row-Shift Detection
Printable Official A4 Specimen
High-Weightage NCERT Facts & Key Terms (द्विभाषी)
15 Core Points
  • Royal Charter 1600: Queen Elizabeth I granted English East India Company exclusive monopoly to trade with the East, eliminating competition from other English merchants.
  • Battle of Plassey (23 June 1757 - Watershed Moment):
  • - Nawab Siraj-ud-Daulah marched against the English factory at Kasimbazar and captured Fort William in Calcutta.
  • - Robert Clive led Company forces from Madras. Defeated Siraj-ud-Daulah at Plassey because Commander MIR JAFAR betrayed the Nawab by never fighting.
  • - British installed Mir Jafar as puppet Nawab; established first territorial foothold in India.
  • Battle of Buxar (1764) & Diwani Grant (1765): After defeating Mir Qasim at Buxar, Mughal Emperor Shah Alam II granted the DIWANI (right to collect land revenues) of Bengal, Bihar, and Orissa to the Company, allowing Britain to finance its trade and troops using Indian revenues instead of importing gold and silver from Britain!
  • Subsidiary Alliance (सहायक संधि) introduced by Lord Wellesley:
  • - Indian rulers were NOT allowed to maintain independent armed forces.
  • - Protected by Company troops; ruler had to pay for maintenance of subsidiary force. If failed, a portion of territory was ceded as penalty (Nawab of Awadh lost half his territory in 1801; Hyderabad lost territories).
  • Tipu Sultan - 'The Tiger of Mysore':
  • - Modernized army with French assistance; stopped export of sandalwood, pepper, and cardamom through Mysore ports; established state dockyards and rockets.
  • - Fought four Anglo-Mysore Wars; died defending his capital Seringapatam on 4 May 1799.
  • Doctrine of Lapse (व्यपगत का सिद्धांत / विलय नीति) by Lord Dalhousie:
  • - If an Indian ruler died without a natural male heir, his kingdom 'lapsed' and became part of Company territory.
  • - Chronology of annexed states: Satara (1848), Sambalpur (1850), Udaipur (1852), Nagpur (1853), Jhansi (1854). In 1856, Awadh was annexed on the pretext of 'misgovernance'.
CBSE Distractor Traps (Avoid Negative Marking)
  • Trap: Who introduced the 'Doctrine of Lapse'? Correct: LORD DALHOUSIE (लॉर्ड डलहौजी).
  • Trap: Who introduced the 'Subsidiary Alliance'? Correct: LORD WELLESLEY (लॉर्ड वेलेजली).
  • Trap: What was the critical consequence of the Diwani grant of Bengal in 1765? Correct: The Company could finance its purchase of Indian textiles and maintain troops using Bengal's revenues, ending the outflow of gold and silver from Britain.

NCERT Core Facts: Colonial Military Expansion & Annexationist Policies

The Diwani grant, Subsidiary Alliance, and Doctrine of Lapse are prime CTET Paper 2 questions:


1. Imperial Territorial Annexation Policies

British PolicyArchitect Governor-GeneralCore Operational MechanismStates Annexed / Affected
Subsidiary Alliance (सहायक संधि)Lord WellesleyRuler disarmed; pays for British troops; resident stationedAwadh (1801), Hyderabad, Mysore
Doctrine of Lapse (विलय नीति)Lord DalhousieNo natural male heir ightarrow Kingdom lapses to CompanySatara (1848), Sambalpur, Nagpur, Jhansi (1854)
Annexation for MisgovernanceLord DalhousieAnnexed citing misrule of local NawabAwadh (1856) - triggered 1857 revolt

2. The Economic Watershed: Grant of Diwani (1765)

BEFORE 1765: Britain imported Gold & Silver bullion ──> Bought Indian Spices & Silks
AFTER 1765:  Collected Land Tax from Bengal Peasants ──> Financed all Trade, Forts & Armies
Official CTET Benchmark Test

Test Your Mastery: From Trade to Territory: Company Power Established

Authentic CBSE exam questions tested directly from this NCERT chapter.

Question 1 of 2(CTET Jan 2021 & Dec 2021)

Under the 'Doctrine of Lapse' devised by Governor-General Lord Dalhousie, which of the following was the FIRST princely state to be annexed by the British?

गवर्नर-जनरल लॉर्ड डलहौजी द्वारा तैयार की गई 'विलय नीति' (Doctrine of Lapse) के तहत अंग्रेजों द्वारा हड़पा जाने वाला पहला रियासती राज्य कौन-सा था?

Question 2 of 2(CTET Jan 2023)

What major economic transformation occurred when Mughal Emperor Shah Alam II granted the Diwani of Bengal to the East India Company in 1765?

1765 में मुगल सम्राट शाह आलम द्वितीय द्वारा ईस्ट इंडिया कंपनी को बंगाल की दीवानी दिए जाने पर कौन-सा बड़ा आर्थिक परिवर्तन हुआ?

Mastered this chapter? Practice under genuine 150-minute exam conditions.
Open Full OMR Simulator
Frequently Asked Questions (CTET Pedagogy)

Why was the Battle of Plassey (1757) a decisive turning point for British rule in India?

It was the first major military victory of the British East India Company in India, transforming a trading company into a territorial sovereign power.

Under what pretext was Awadh annexed by Lord Dalhousie in 1856?

On the pretext of alleged 'misgovernance' by Nawab Wajid Ali Shah, claiming the British were duty-bound to free the people from corrupt rule.