Hyderabad
Capital of Telangana, India
Hyderabad ( , ; ) is the capital and largest city of the Indian state of Telangana. It occupies on the Deccan Plateau along the banks of the Musi River, in the northern part of Southern India. With an average altitude of , much of Hyderabad is situated on hilly terrain around artificial lakes, including the Hussain Sagar lake, predating the city's founding, in the north of the city centre. According to the 2011 census of India, Hyderabad is the fourth-most populous city in India with a population of 6.9 million residents within the city limits, and has a population of 9.7 million residents in the metropolitan region, making it the sixth-most populous metropolitan area in India. With an output of US$ 95 billion, Hyderabad has the sixth-largest urban economy in India.
The Qutb Shahi dynasty's Muhammad Quli Qutb Shah established Hyderabad in 1591 to extend the capital beyond the fortified Golconda. In 1687, the city was annexed by the Mughals. In 1724, Asaf Jah I, the Mughal viceroy, declared his sovereignty and founded the Asaf Jahi dynasty, also known as the Nizams. Hyderabad served as the imperial capital of the Asaf Jahis from 1769 to 1948. As the capital of the princely state of Hyderabad, the city housed the British Residency and cantonment until Indian independence in 1947. Hyderabad was annexed by the Indian Union in 1948 and continued as a capital of Hyderabad State from 1948 to 1956. After the introduction of the States Reorganisation Act of 1956, Hyderabad was made the capital of the newly formed Andhra Pradesh. In 2014, Andhra Pradesh was split to form the state of Telangana, and Hyderabad became the joint capital of the two states until 2024. Since 1956, the city has housed the Rashtrapati Nilayam, the winter office of the president of India.
Relics of the Qutb Shahi and Nizam eras remain visible today; the Charminar has come to symbolise the city. By the end of the early modern era, the Mughal Empire had declined in the Deccan, and the Nizam's patronage attracted men of letters from various parts of the world. A distinctive culture arose from the amalgamation of local and migrated artisans, with painting, handicraft, jewellery, literature, dialect and clothing prominent even today. For its cuisine, the city is listed as a creative city of gastronomy by UNESCO. The Telugu film industry based in the city is the highest-grossing film industry in India as of 2021[ [update]].
Until the 19th century, Hyderabad was known for its pearl industry and was nicknamed the "City of Pearls", and was the only trading centre for Golconda diamonds in the world. Many of the city's historical and traditional bazaars remain open. Hyderabad's central location between the Deccan Plateau and the Western Ghats, and industrialisation throughout the 20th century attracted major Indian research, manufacturing, educational and financial institutions. Since the 1990s, the city has emerged as an Indian hub of pharmaceuticals and biotechnology and information technology. The formation of the special economic zones of Hardware Park and HITEC City, dedicated to information technology, has encouraged leading multinationals to set up operations in Hyderabad.
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History.
Toponymy.
The name "Hyderabad" means "Haydar's City" or "Lion City", from "haydar" 'lion' and "ābād" 'city', after Caliph Ali Ibn Abi Talib, also known as Haydar because of his lion-like valour in battle. The city was originally called "Baghnagar" ("city of gardens"). The European travellers von Poser and Thévenot found both names in use in the 17th century. A popular legend suggests that the founder of the city, Muhammad Quli Qutb Shah, named it "Bhagya-nagar" ("fortunate city") after Bhagmati, a local "nautch" (dancing girl) whom he married. She converted to Islam and adopted the title "Hyder Mahal", the city being subsequently named "Hyderabad" in her honour.
In the year 1597, Hyderabad gained the epithet "Farkhunda Bunyad" (lit. 'Of Auspicious Foundation'). Following the Mughal conquest of Hyderabad, emperor Aurangzeb changed the epithet to "Dar-ul-Jihad" (lit. 'Abode of Holy War'), a title which appears on coins minted in the city during the reigns of Aurangzeb and Kam Bakhsh. The later Mughal emperor Shah Alam returned the city to its older epithet of "Farkhunda Bunyad", and consequently Mughal coins of Shah Alam and Muhammad Shah feature this title as the city's mint-name.
Early and medieval history.
The discovery of Megalithic burial sites and cairn circles in the suburbs of Hyderabad, in 1851 by Philip Meadows Taylor, a polymath in the service of the Nizam, had provided evidence that the region in which the city stands has been inhabited since the Stone Age. In 2008, Archaeologists excavating near the city have unearthed Iron Age sites that may date from 500 BCE. The region comprising modern Hyderabad and its surroundings was ruled by the Chalukya dynasty from 624 CE to 1075 CE. Following the dissolution of the Chalukya empire into four parts in the 11th century, Golconda—now part of Hyderabad—came under the control of the Kakatiya dynasty from 1158, whose seat of power was at Warangal— northeast of modern Hyderabad. The Kakatiya ruler Ganapatideva (1199–1262) built a hilltop outpost—later known as Golconda Fort—to defend their western region.
The Kakatiya dynasty was reduced to a vassal of the Khalji dynasty in 1310 after its defeat by Sultan Alauddin Khalji of the Delhi Sultanate. This lasted until 1321 when the Kakatiya dynasty was annexed by Malik Kafur, Khalji's general. During this period, Khalji took the "Koh-i-Noor" diamond, which is said to have been mined from the Kollur Mines of Golconda, to Delhi. Muhammad bin Tughluq succeeded to the Delhi sultanate in 1325, bringing Warangal under the rule of the Tughlaq dynasty; Malik Maqbul Tilangani was appointed its governor. In 1336 the regional chieftains Musunuri Nayakas—who revolted against the Delhi sultanate in 1333—took Warangal under their direct control and declared it as their capital. In 1347 when Ala-ud-Din Bahman Shah, a governor under bin Tughluq, rebelled against Delhi and established the Bahmani Sultanate in the Deccan Plateau, with Gulbarga— west of Hyderabad—as its capital, both the neighbouring rulers Musunuri Nayakas of Warangal and Bahmani Sultans of Gulbarga engaged in many wars until 1364–65 when a peace treaty was signed and the Musunuri Nayakas ceded Golconda Fort to the Bahmani Sultan. The Bahmani Sultans ruled the region until 1518 and were the first independent Muslim rulers of the Deccan.
In 1496 Sultan Quli was appointed as a Bahmani governor of Telangana. He rebuilt, expanded and fortified the old mud fort of Golconda and named the city "Muhammad Nagar". In 1518, he revolted against the Bahmani Sultanate and established the Qutb Shahi dynasty. The fifth Qutb Shahi sultan, Muhammad Quli Qutb Shah, established Hyderabad on the banks of the Musi River in 1591, to avoid water shortages experienced at Golconda. During his rule, he had the Charminar and Mecca Masjid built in the city. On 21 September 1687, the Golconda Sultanate came under the rule of the Mughal emperor Aurangzeb after a year-long siege of the Golconda Fort. The annexed city "Hyderabad" was renamed "Darul Jihad" (House of War), whereas the main territories of the Golconda Sultanate were incorporated into the Mughal empire as the province Hyderabad Subah. Mughal rule in Hyderabad was administered by three main governors: Jan Sipar Khan (1688–1700), his son Rustam Dil Khan (1700–13) and Mubariz Khan (1713–24).
Modern history.
In 1713, Mughal emperor Farrukhsiyar appointed Mubariz Khan as Governor of Hyderabad. During his tenure, he fortified the city and controlled the internal and neighbouring threats. In 1714 Farrukhsiyar appointed Asaf Jah I as Viceroy of the Deccan—(administrator of six Mughal governorates) with the title "Nizam-ul-Mulk" (Administrator of the Realm). In 1721, he was appointed as Prime Minister of the Mughal Empire. His differences with the court nobles led him to resign from all the imperial responsibilities in 1723 and leave for Deccan. Under the influence of Asaf Jah I's opponents, Mughal Emperor Muhammad Shah issued a decree to Mubariz Khan, to stop Asaf Jah I which resulted in the Battle of Shakar Kheda. In 1724, Asaf Jah I defeated Mubariz Khan to establish autonomy over the "Deccan", named the region "Hyderabad Deccan", and started what came to be known as the Asaf Jahi dynasty. Subsequent rulers retained the title "Nizam ul-Mulk" and were referred to as Asaf Jahi Nizams, or Nizams of Hyderabad. The death of Asaf Jah I in 1748 resulted in a period of political unrest as his sons and grandson—Nasir Jung (1748–1750), Muzaffar Jang (1750–1751) and Salabat Jung (1751–1762)—contended for the throne backed by opportunistic neighbouring states and colonial foreign forces. The accession of Asaf Jah II, who reigned from 1762 to 1803, ended the instability. In 1768 he signed the Treaty of Masulipatam—by which the East India Company in return for a fixed annual rent, got the right to control and collect the taxes at Coromandel Coast.
In 1769 Hyderabad city became the formal capital of the Asaf Jahi Nizams. In response to regular threats from Hyder Ali (Dalwai of Mysore), Baji Rao I (Peshwa of the Maratha Empire), and Basalath Jung (Asaf Jah II's elder brother, who was supported by French General the Marquis de Bussy-Castelnau), the Nizam signed a subsidiary alliance with the East India Company in 1798, allowing the British Indian Army to be stationed at Bolarum (modern Secunderabad) to protect the state's capital, for which the Nizams paid an annual maintenance to the British.
Until 1874 there were no modern industries in Hyderabad. With the introduction of railways in the 1880s, four factories were built to the south and east of Hussain Sagar lake, and during the early 20th century, Hyderabad was transformed into a modern city with the establishment of transport services, underground drainage, running water, electricity, telecommunications, universities, industries, and Begumpet Airport. The Nizams ruled the princely state of Hyderabad during the British Raj.
Post-Independence.
After India gained independence, the Nizam declared his intention to remain independent rather than become part of the Indian Union or newly formed Dominion of Pakistan. The Hyderabad State Congress, with the support of the Indian National Congress and the Communist Party of India, began agitating against Nizam VII in 1948. On 17 September that year, the Indian Army took control of Hyderabad State after an invasion codenamed Operation Polo. With the defeat of his forces, Nizam VII capitulated to the Indian Union by signing an Instrument of Accession, which made him the "Rajpramukh" (Princely Governor) of the state until it was abolished on 31 October 1956.
Between 1946 and 1951, the Communist Party of India fomented the Telangana uprising against the feudal lords of the Telangana region. The Constitution of India, which became effective on 26 January 1950, made Hyderabad State one of the part B states of India, with Hyderabad city continuing to be the capital. In his 1955 report "Thoughts on Linguistic States", B. R. Ambedkar, then chairman of the Drafting Committee of the Indian Constitution, proposed designating the city of Hyderabad as the second capital of India because of its amenities and strategic central location.
On 1 November 1956 the states of India were reorganised by language. Hyderabad state was split into three parts, which were merged with neighbouring states to form Maharashtra, Karnataka and Andhra Pradesh. The nine Telugu- and Urdu-speaking districts of Hyderabad State in the Telangana region were merged with the Telugu-speaking Andhra State to create Andhra Pradesh, with Hyderabad as its capital. Several protests, known collectively as the Telangana movement, attempted to invalidate the merger and demanded the creation of a new Telangana state. Major actions took place in 1969 and 1972, and a third began in 2010. On 30 July 2013 the government of India declared that part of Andhra Pradesh would be split off to form a new Telangana state and that Hyderabad city would be the capital city and part of Telangana, while the city would also remain the capital of Andhra Pradesh for no more than ten years. On 3 October 2013 the Union Cabinet approved the proposal, and in February 2014 both houses of Parliament passed the Telangana Bill. With the final assent of the President of India, Telangana state was formed on 2 June 2014.
Geography.
Hyderabad is south of Delhi, southeast of Mumbai, and north of Bangalore by road. It is situated in the southern part of Telangana in southeastern India, along the banks of the Musi River, a tributary of Krishna River located on the Deccan Plateau in the northern part of South India. Greater Hyderabad covers , making it one of the largest metropolitan areas in India. With an average altitude of , Hyderabad lies on predominantly sloping terrain of grey and pink granite, dotted with small hills, the highest being Banjara Hills at . The city has numerous lakes sometime referred to as "sagar", meaning "sea". Examples include artificial lakes created by dams on the Musi, such as Hussain Sagar (built-in 1562 near the city centre), Osman Sagar and Himayat Sagar. As of 1996[ [update]], the city had 140 lakes and 834 water tanks (ponds).
Climate.
Hyderabad has a tropical wet and dry climate (Köppen "Aw") bordering on a hot semi-arid climate (Köppen "BSh"). The annual mean temperature is ; monthly mean temperatures are . Summers (March–June) are hot and dry, with average highs in the mid-to-high 30s Celsius; maximum temperatures often exceed between April and June. The coolest temperatures occur in December and January when the lowest temperature occasionally dips to . May is the hottest month when daily temperatures range from ; December, the coldest, has temperatures varying from .
Heavy rain from the south-west summer monsoon falls between June and October, supplying Hyderabad with most of its mean annual rainfall. Since records began in November 1891, the heaviest rainfall recorded in a 24-hour period was on 24 August 2000. The highest temperature ever recorded was on 2 June 1966, and the lowest was on 8 January 1946. The city receives 2,731 hours of sunshine per year; maximum daily sunlight exposure occurs in February.
Hyderabad has been ranked 21st best "National Clean Air City" (under Category 1 >10L Population cities) in India according to 'Swachh Vayu Survekshan 2024 Results'
Conservation.
Hyderabad's lakes and the sloping terrain of its low-lying hills provide habitat for an assortment of flora and fauna. As of 2016[ [update]], the tree cover is 1.7% of the total city area, a decrease from 2.7% in 1996. The forest region in and around the city encompasses areas of ecological and biological importance, which are preserved in the form of national parks, zoos, mini-zoos and a wildlife sanctuary. Nehru Zoological Park, the city's largest zoo, is the first in India to have a lion and tiger safari park. Hyderabad has three national parks (Mrugavani National Park, Mahavir Harina Vanasthali National Park and Kasu Brahmananda Reddy National Park), and the Manjira Wildlife Sanctuary is about from the city.
The other environmental reserves of Hyderabad are Kotla Vijayabhaskara Reddy Botanical Gardens, Ameenpur Lake, Shamirpet Lake, Hussain Sagar, Fox Sagar Lake, Mir Alam Tank and Patancheru Lake, which is home to regional birds and attracts seasonal migratory birds from different parts of the world. Organisations engaged in environmental and wildlife preservation include the Telangana Forest Department, Indian Council of Forestry Research and Education, the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), the Animal Welfare Board of India, the Blue Cross of Hyderabad and the University of Hyderabad.
Administration.
Common capital status.
According to the Andhra Pradesh Reorganisation Act, 2014 part 2 Section 5: "(1) On and from the appointed day, Hyderabad in the existing State of Andhra Pradesh, shall be the common capital of the State of Telangana and the State of Andhra Pradesh for such period not exceeding ten years. (2) After the expiry of the period referred to in subsection (1), Hyderabad shall be the capital of the State of Telangana and there shall be a new capital for the State of Andhra Pradesh."
The same sections also define that the common capital includes the existing area designated as the Greater Hyderabad Municipal Corporation under the Hyderabad Municipal Corporation Act, 1955. As stipulated in sections 3 and 18(1) of the Reorganisation Act, city MLAs are members of the Telangana state assembly.
Local government.
The Greater Hyderabad Municipal Corporation (GHMC) oversees the civic infrastructure of the city, there are six administrative zones of GHMC: South Zone–(Charminar), East Zone–(L. B. Nagar), West Zone–(Serilingampally), North Zone–(Kukatpally), Northeast Zone–(Secunderabad) and Central Zone–(Khairatabad); these zones consist of 30 "circles", which together encompass 150 municipal wards. Each ward is represented by a corporator, elected by popular vote, as of 2020[ [update]] the city has 7,400,000 voters of which 3,850,000 are male and 3,500,000 are female. The corporators elect the Mayor, who is the titular head of GHMC; executive powers rest with the Municipal Commissioner, appointed by the state government. The GHMC carries out the city's infrastructural work such as building and maintenance of roads and drains, town planning including construction regulation, maintenance of municipal markets and parks, solid waste management, the issuing of birth and death certificates, the issuing of trade licences, collection of property tax, and community welfare services such as mother and child healthcare, and pre-school and non-formal education. The GHMC was formed in April 2007 by merging the Municipal Corporation of Hyderabad (MCH) with 12 municipalities of the Hyderabad, Ranga Reddy and Medak districts covering a total area of . The Secunderabad Cantonment Board is a civic administration agency overseeing an area of , where there are several military camps. The Osmania University campus is administered independently by the university authority. Appointed in February 2021, Gadwal Vijayalakshmi of Telangana Rashtra Samithi (TRS) is serving as the mayor of GHMC.
In Hyderabad police jurisdiction is divided into three commissionerates: Hyderabad (established in 1847 AD, the oldest police commissionerate in India), Cyberabad, and Rachakonda, each headed by a commissioner of police, who are Indian Police Service (IPS) officers. The Hyderabad police is a division of the Telangana Police, under the state Home Ministry.
The jurisdictions of the city's administrative agencies are, in ascending order of size: the Hyderabad Police area, Hyderabad district, the GHMC area ("Hyderabad city"), and the area under the Hyderabad Metropolitan Development Authority (HMDA). The HMDA is an apolitical urban planning agency that covers the GHMC and its suburbs, extending to 54 "mandals" in five districts encircling the city. It coordinates the development activities of GHMC and suburban municipalities and manages the administration of bodies such as the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB).
Hyderabad is the seat of the Government of Telangana, Government of Andhra Pradesh and the President of India's winter retreat Rashtrapati Nilayam, as well as the Telangana High Court and various local government agencies. The Lower City Civil Court and the Metropolitan Criminal Court are under the jurisdiction of the High Court. The GHMC area contains 24 State Legislative Assembly constituencies, which form five constituencies of the Lok Sabha (the lower house of the Parliament of India).
Utility services.
The HMWSSB (Hyderabad Metropolitan Water Supply & Sewage Board) regulates rainwater harvesting, sewerage services, and water supply. In 2005, the HMWSSB started operating a water supply pipeline from Nagarjuna Sagar Dam to meet increasing demand. The Telangana Southern Power Distribution Company Limited (TSPDCL) manages electricity supply. As of 2014[ [update]], there were 15 fire stations in the city, operated by the Telangana State Disaster and Fire Response Department. The government-owned India Post has five head post offices and many sub-post offices in Hyderabad, which are complemented by private courier services.
Pollution control.
Hyderabad produces around 4,500 tonnes of solid waste daily, which is transported from collection units in Imlibun, Yousufguda and Lower Tank Bund to the dumpsite in Jawaharnagar. Disposal is managed by the Integrated Solid Waste Management project which was started by the GHMC in 2010. Rapid urbanisation and increased economic activity has led to increased industrial waste, air, noise and water pollution, which is regulated by the Telangana Pollution Control Board (TPCB). The contribution of different sources to air pollution in 2006 was: 20–50% from vehicles, 40–70% from a combination of vehicle discharge and road dust, 10–30% from industrial discharges and 3–10% from the burning of household rubbish. Deaths resulting from atmospheric particulate matter are estimated at 1,700–3,000 each year. The city's "VIP areas", the Assembly building, Secretariat, and Telangana chief minister's office, have particularly low air quality index ratings, suffering from high levels of PM2.5's. Ground water around Hyderabad, which has a hardness of up to 1000 ppm, around three times higher than is desirable, is the main source of drinking water but the increasing population and consequent increase in demand has led to a decline in not only ground water but also river and lake levels. This shortage is further exacerbated by inadequately treated effluent discharged from industrial treatment plants polluting the water sources of the city.
Healthcare.
The Commissionerate of Health and Family Welfare is responsible for planning, implementation and monitoring of all facilities related to health and preventive services. As of 2010[ [update]]–11, the city had 50 government hospitals, 300 private and charity hospitals and 194 nursing homes providing around 12,000 hospital beds, fewer than half the required 25,000. For every 10,000 people in the city, there are 17.6 hospital beds, 9 specialist doctors, 14 nurses and 6 physicians. The city has about 4,000 individual clinics. Private clinics are preferred by many residents because of the distance to, poor quality of care at and long waiting times in government facilities, despite the high proportion of the city's residents being covered by government health insurance: 24% according to a National Family Health Survey in 2005. As of 2012[ [update]], many new private hospitals of various sizes were opened or being built. Hyderabad has outpatient and inpatient facilities that use Unani, homoeopathic and Ayurvedic treatments.
In the 2005 National Family Health Survey, it was reported that the city's total fertility rate is 1.8, which is below the replacement rate. Only 61% of children had been provided with all basic vaccines (BCG, measles and full courses of polio and DPT), fewer than in all other surveyed cities except Meerut. The infant mortality rate was 35 per 1,000 live births, and the mortality rate for children under five was 41 per 1,000 live births. The survey also reported that a third of women and a quarter of men are overweight or obese, 49% of children below 5 years are anaemic, and up to 20% of children are underweight, while more than 2% of women and 3% of men suffer from diabetes.
Demographics.
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When the GHMC was created in 2007, the area occupied by the municipality increased from to . Consequently, the population increased by 87%, from 3,637,483 as of 2001[ [update]] census to 6,809,970 as of 2011[ [update]] census, 24% of which are migrants from elsewhere in India, making Hyderabad the nation's fourth most populous city. As of 2011[ [update]], the population density is and the Hyderabad urban agglomeration had a population of 7,749,334 making it the sixth most populous urban agglomeration in the country. as of 2011[ [update]] census, there are 3,500,802 male and 3,309,168 female citizens—a sex ratio of 945 females per 1000 males, higher than the national average of 926 per 1000. Among children aged 0–6 years, 373,794 are boys and 352,022 are girls—a ratio of 942 per 1000. Literacy stands at 83% (male 86%; female 80%), higher than the national average of 74.04%. The socio-economic strata consist of 20% upper class, 50% middle class and 30% working class.
Ethnicity.
Referred to as "Hyderabadi", the residents of Hyderabad are predominantly Telugu and Urdu speaking people, with minority Arab, Marathi, Marwari, and Pathan communities.
Hyderabadi Muslims are a unique community who owe much of their history, language, cuisine, and culture to Hyderabad, and the various dynasties who previously ruled. Hadhrami Arabs, African Arabs, Armenians, Abyssinians, Iranians, Pathans and Turkish people were present before 1948; these communities, of which the Hadhrami Arabs are the largest, declined after Hyderabad State became part of the Indian Union, as they lost the patronage of the Asaf Jahi Nizams.
Religion.
Hindus are in the majority. Muslims form a very large minority and are present throughout the city and predominate in and around the Old City of Hyderabad. There are also Christian, Sikh, Jain, Buddhist and Parsi communities and iconic churches, mosques and temples. According to the 2011[ [update]] census, the religious make-up of Greater Hyderabad was: Hindus (64.9%), Muslims (30.1%), Christians (2.8%), Jains (0.3%), Sikhs (0.3%) and Buddhists (0.1%); 1.5% did not state any religion.
Languages.
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Telugu and Urdu are both official languages of the city, and most Hyderabadis are bilingual. The Telugu dialect spoken in Hyderabad is called Telangana Mandalika, and the Urdu spoken is called Deccani. English is a "Secondary official language" is pervasive in business and administration, and it is an important medium of instruction in education and publications. A significant minority speak other languages, including Bengali, Hindi, Kannada, Marathi, Marwari, Odia, Punjabi and Tamil.
Slums.
As of 2012, in the greater metropolitan area, 13% of the population live below the poverty line. According to a 2012 report submitted by GHMC to the World Bank, Hyderabad has 1,476 slums with a total population of 1.7 million, of whom 66% live in 985 slums in the "core" of the city (the part that formed Hyderabad before the April 2007 expansion) and the remaining 34% live in 491 suburban tenements. About 22% of the slum-dwelling households had migrated from different parts of India in the last decade of the 20th century, and 63% claimed to have lived in the slums for more than 10 years. Overall literacy in the slums is 60–80% and female literacy is 52–73%. A third of the slums have basic service connections, and the remainder depend on general public services provided by the government. There are 405 government schools, 267 government-aided schools, 175 private schools, and 528 community halls in the slum areas. According to a 2008 survey by the Centre for Good Governance, 87.6% of the slum-dwelling households are nuclear families, 18% are very poor, with an income up to per annum, 73% live below the poverty line (a standard poverty line recognised by the Andhra Pradesh Government is per annum), 27% of the chief wage earners (CWE) are casual labour and 38% of the CWE are illiterate. About 3.7% of the slum children aged 5–14 do not go to school and 3.2% work as child labour, of whom 64% are boys and 36% are girls. The largest employers of child labour are street shops and construction sites. Among the working children, 35% are engaged in hazardous jobs.
Cityscape.
Neighbourhoods.
The historic city established by Muhammad Quli Qutb Shah on the southern side of the Musi River forms the heritage region of Hyderabad called the "Purana Shahar" (Old City), while the "New City" encompasses the urbanised area on the northern banks. The two are connected by many bridges across the river, the oldest of which is Purana Pul—("old bridge") built in 1578 AD. Hyderabad is twinned with neighbouring Secunderabad, to which it is connected by Hussain Sagar.
Many historic and heritage sites lie in south central Hyderabad, such as the Charminar, Mecca Masjid, Salar Jung Museum, Nizam Museum, Telangana High Court, Falaknuma Palace, Chowmahalla Palace and the traditional retail corridor comprising the Pearl Market, Laad Bazaar and Madina Circle. North of the river are hospitals, colleges, major railway stations and business areas such as Begum Bazaar, Koti, Abids, Sultan Bazar and Moazzam Jahi Market, along with administrative and recreational establishments such as the Reserve Bank of India, the Telangana Secretariat, the India Government Mint, the Telangana Legislature, the Public Gardens, Shahi Masjid, the Nizam Club, the Ravindra Bharathi, the State Museum, the Birla Temple and the Birla Planetarium.
North of central Hyderabad lies Hussain Sagar, Tank Bund Road, Rani Gunj and the Secunderabad railway station. Most of the city's parks and recreational centres, such as Sanjeevaiah Park, Indira Park, Lumbini Park, NTR Gardens, the Buddha statue and Tankbund Park are located here. In the northwest part of the city there are upscale residential and commercial areas such as Banjara Hills, Jubilee Hills, Begumpet, Khairtabad, Tolichowki, Jagannath Temple and Miyapur. The northern end contains industrial areas such as Kukatpally, Sanathnagar, Moosapet, Balanagar, Patancheru and Chanda Nagar. The northeast end is dotted with residential areas such as Malkajgiri, Neredmet, A. S. Rao Nagar and Uppal. In the eastern part of the city lie many defence research centres and Ramoji Film City. The "Cyberabad" area in the southwest and west of the city, consisting of Madhapur and Gachibowli has grown rapidly since the 1990s. It is home to information technology and bio-pharmaceutical companies and to landmarks such as Hyderabad Airport, Osman Sagar, Himayath Sagar and Kasu Brahmananda Reddy National Park.
Landmarks.
Heritage buildings constructed during the Qutb Shahi and Nizam eras showcase Indo-Islamic architecture influenced by Medieval, Mughal and European styles. After the 1908 flooding of the Musi River, the city was expanded and civic monuments constructed, particularly during the rule of Mir Osman Ali Khan (the VIIth Nizam), whose patronage of architecture led to him being referred to as the maker of modern Hyderabad. In 2012, the government of India declared Hyderabad the first "Best heritage city of India".
Qutb Shahi architecture of the 16th and early 17th centuries followed classical Persian architecture featuring domes and colossal arches. The oldest surviving Qutb Shahi structure in Hyderabad is the ruins of the Golconda Fort built in the 16th century. Most of the historical bazaars that still exist were constructed on the street north of Charminar towards the fort. The Charminar has become an icon of the city; located in the centre of old Hyderabad, it is a square structure with sides long and four grand arches each facing a road. At each corner stands a -high minaret. The Charminar, Golconda Fort and the Qutb Shahi tombs are considered to be monuments of national importance in India; in 2010 the Indian government proposed that the sites be listed for UNESCO World Heritage status.
Among the oldest surviving examples of Nizam architecture in Hyderabad is the Chowmahalla Palace, which was the seat of royal power. It showcases a diverse array of architectural styles, from the Baroque Harem to its Neoclassical royal court. The other palaces include Falaknuma Palace (inspired by the style of Andrea Palladio), Purani Haveli, King Kothi Palace and Bella Vista Palace all of which were built at the peak of Nizam rule in the 19th century. During Mir Osman Ali Khan's rule, European styles, along with Indo-Islamic, became prominent. These styles are reflected in the Indo-Saracenic style of architecture seen in many civic monuments such as the Hyderabad High Court, Osmania Hospital, City College and the Kacheguda railway station, all designed by Vincent Esch. Other landmark structures of the city constructed during his regin are the State Central Library, the Telangana Legislature, the State Archaeology Museum, Jubilee Hall, and Hyderabad railway station. Other landmarks of note are Paigah Palace, Asman Garh Palace, Basheer Bagh Palace, Errum Manzil and the Spanish Mosque, all constructed by the Paigah family.
Economy.
Recent estimates of the economy of Hyderabad's metropolitan area have ranged from US$40-US$74 billion (PPP GDP), and have ranked it either fifth- or sixth- most productive metro area of India. Hyderabad is the largest contributor to the gross domestic product (GDP), tax and other revenues, of Telangana, and the sixth largest deposit centre and fourth largest credit centre nationwide, as ranked by the Reserve Bank of India (RBI) in June 2012. Its per capita annual income in 2011 was . As of 2006[ [update]], the largest employers in the city were the state government (113,098 employees) and central government (85,155). According to a 2005 survey, 77% of males and 19% of females in the city were employed. The service industry remains dominant in the city, and 90% of the employed workforce is engaged in this sector.
Hyderabad's role in the pearl trade has given it the name "City of Pearls" and up until the 18th century, the city was the only global trading centre for diamonds known as Golconda diamonds. Industrialisation began under the Nizams in the late 19th century, helped by railway expansion that connected the city with major ports. From the 1950s to the 1970s, Indian enterprises, such as Bharat Heavy Electricals Limited (BHEL), Nuclear Fuel Complex (NFC), National Mineral Development Corporation (NMDC), Bharat Electronics (BEL), Electronics Corporation of India Limited (ECIL), Defence Research and Development Organisation (DRDO), Hindustan Aeronautics Limited (HAL), Centre for Cellular and Molecular Biology (CCMB), Centre for DNA Fingerprinting and Diagnostics (CDFD), State Bank of Hyderabad (SBH) and Andhra Bank (AB) were established in the city. The city is home to Hyderabad Securities formerly known as Hyderabad Stock Exchange (HSE), and houses the regional office of the Securities and Exchange Board of India (SEBI). In 2013, the Bombay Stock Exchange (BSE) facility in Hyderabad was forecast to provide operations and transactions services to BSE-Mumbai by the end of 2014. The growth of the financial services sector has helped Hyderabad evolve from a traditional manufacturing city to a cosmopolitan industrial service centre. Since the 1990s, the growth of information technology (IT), IT-enabled services (ITES), insurance and financial institutions has expanded the service sector, and these primary economic activities have boosted the ancillary sectors of trade and commerce, transport, storage, communication, real estate and retail. As of 2021[ [update]], the IT exports from Hyderabad were ₹ 1,45,522 crore (US$19.66 billion), the city houses 1500 IT and TES companies that provide 628,615 jobs.
Hyderabad's commercial markets are divided into four sectors: central business districts, sub-central business centres, neighbourhood business centres and local business centres. Many traditional and historic bazaars are located throughout the city, Laad Bazaar being the prominent among all is popular for selling a variety of traditional and cultural antique wares, along with gems and pearls.
The establishment of Indian Drugs and Pharmaceuticals Limited (IDPL), a public sector undertaking, in 1961 was followed over the decades by many national and global companies opening manufacturing and research facilities in the city. As of 2010[ [update]], the city manufactured one third of India's bulk drugs and 16% of biotechnology products, contributing to its reputation as "India's pharmaceutical capital" and the "Genome Valley of India". Hyderabad is a global centre of information technology, for which it is known as "Cyberabad" (Cyber City). As of 2013[ [update]], it contributed 15% of India's and 98% of Andhra Pradesh's exports in IT and ITES sectors and 22% of NASSCOM's total membership is from the city. The development of HITEC City, a township with extensive technological infrastructure, prompted multinational companies to establish facilities in Hyderabad. The city is home to more than 1300 IT and ITES firms that provide employment for 407,000 individuals; the global conglomerates include Microsoft, Apple, Amazon, Google, IBM, Yahoo!, Oracle Corporation, Dell, Facebook, CISCO, and major Indian firms including Tech Mahindra, Infosys, Tata Consultancy Services (TCS), Polaris, Cyient and Wipro. In 2009 the World Bank Group ranked the city as the second best Indian city for doing business. The city and its suburbs contain the highest number of special economic zones of any Indian city.
The Automotive industry in Hyderabad is also emerging and making it an automobile hub. Automobile companies including as Hyundai, Hyderabad Allwyn, Praga Tools, HMT Bearings, Ordnance Factory Medak, Deccan Auto and Mahindra & Mahindra have units in the Hyderabad economic zone. Fiat Chrysler Automobiles, Maruti Suzuki and Triton Energy will invest in Hyderabad.
Like the rest of India, Hyderabad has a large informal economy that employs 30% of the labour force. According to a survey published in 2007, it had 40–50,000 street vendors, and their numbers were increasing. Among the street vendors, 84% are male and 16% female, and four fifths are "stationary vendors" operating from a fixed pitch, often with their own stall. Most are financed through personal savings; only 8% borrow from moneylenders. Vendor earnings vary from to per day. Other unorganised economic sectors include dairy, poultry farming, brick manufacturing, casual labour and domestic help. Those involved in the informal economy constitute a major portion of the urban poor.
In 2024, the World Economic Forum established a Centre for Fourth Industrial Revolution (C4IR), in the city. Which it describes as a hub to leverage the latest technology in advancing the life sciences and health sectors.
Culture.
Hyderabad emerged as the foremost centre of culture in India with the decline of the Mughal Empire. After the fall of Delhi in 1857, the migration of performing artists to the city particularly from the north and west of the Indian subcontinent, under the patronage of the Nizam, enriched the cultural milieu. This migration resulted in a mingling of North and South Indian languages, cultures and religions, which has since led to a co-existence of Hindu and Muslim traditions, for which the city has become noted. A further consequence of this north–south mix is that both Telugu and Urdu are official languages of Telangana. The mixing of religions has resulted in many festivals being celebrated in Hyderabad such as Ganesh Chaturthi, Diwali and Bonalu of Hindu tradition and Eid ul-Fitr and Eid al-Adha by Muslims.
Traditional Hyderabadi garb reveals a mix of Muslim and Hindu influences with men wearing "sherwani" and "kurta–paijama" and women wearing "khara dupatta" and "salwar kameez". Most Muslim women wear "burqa" and "hijab" outdoors. In addition to the traditional Hindu and Muslim garments, increasing exposure to western cultures has led to a rise in the wearing of western style clothing among youths.
Literature.
In the past, Qutb Shahi rulers and Asaf Jahi Nizams attracted artists, architects, and men of letters from different parts of the world through patronage. The resulting ethnic mix popularised cultural events such as "mushairas" (poetic symposia), "Qawwali" (devotional songs) and "Dholak ke Geet" (traditional folk songs). The Qutb Shahi dynasty particularly encouraged the growth of Deccani literature leading to works such as the "Deccani Masnavi" and "Diwan poetry", which are among the earliest available manuscripts in Urdu. "Lazzat Un Nisa", a book compiled in the 15th century at Qutb Shahi courts, contains erotic paintings with diagrams for secret medicines and stimulants in the eastern form of ancient sexual arts. The reign of the Asaf Jahi Nizams saw many literary reforms and the introduction of Urdu as a language of court, administration and education. In 1824, a collection of Urdu "Ghazal" poetry, named "Gulzar-e-Mahlaqa", authored by Mah Laqa Bai—the first female Urdu poet to produce a Diwan—was published in Hyderabad. Hyderabad has continued with these traditions in its annual Hyderabad Literary Festival, held since 2010, showcasing the city's literary and cultural creativity. Organisations engaged in the advancement of literature include the Sahitya Akademi, the Urdu Academy, the Telugu Academy, the National Council for Promotion of Urdu Language, the Comparative Literature Association of India, and the Andhra Saraswata Parishad. Literary development is further aided by state institutions such as the State Central Library, the largest public library in the state which was established in 1891, and other major libraries including the Sri Krishna Devaraya Andhra Bhasha Nilayam, the British Library and the Sundarayya Vignana Kendram.
Music and films.
South Indian music and dances such as the Kuchipudi and Bharatanatyam styles are popular in the Deccan region. As a result of their cultural policies, North Indian music and dance gained popularity during the rule of the Mughals and Nizams, and it was also during their reign that it became a tradition among the nobility to associate themselves with tawaif (courtesans). These courtesans were revered as the epitome of etiquette and culture and were appointed to teach singing, poetry, and classical dance to many children of the aristocracy. This gave rise to certain styles of court music, dance and poetry. Besides western and Indian popular music genres such as filmi music, the residents of Hyderabad play city-based "marfa music", "Dholak ke Geet" (household songs based on local folklore), and qawwali, especially at weddings, festivals and other celebratory events. The state government organises the Golconda Music and Dance Festival, the Taramati Music Festival and the Premavathi Dance Festival to further encourage the development of music.
Although the city is not particularly noted for theatre and drama, the state government promotes theatre with multiple programmes and festivals in such venues as the Ravindra Bharathi, Shilpakala Vedika, Lalithakala Thoranam and Lamakaan. Although not a purely music-oriented event, Numaish, a popular annual exhibition of local and national consumer products, does feature some musical performances.
The city is home to the Telugu film industry, popularly known as Tollywood—as of 2021[ [update]] it is the highest-grossing Indian film industry. In the 1970s, Deccani language realist films by globally acclaimed Shyam Benegal started a movement of coming of age art films in India, which came to be known as parallel cinema. The Deccani film industry ("Dollywood") produces films in the local Hyderabadi dialect, which have gained regional popularity since 2005. The city has hosted international film festivals such as the International Children's Film Festival and the Hyderabad International Film Festival. In 2005, "Guinness World Records" declared Ramoji Film City to be the world's largest film studio.
Art and handicrafts.
The region is well known for its Golconda and Hyderabad painting styles which are branches of Deccan painting. Developed during the 16th century, the Golconda style is a native style blending foreign techniques and bears some similarity to the Vijayanagara paintings of neighbouring Mysore. A significant use of luminous gold and white colours is generally found in the Golconda style. The Hyderabad style originated in the 17th century under the Nizams. Highly influenced by Mughal painting, this style makes use of bright colours and mostly depicts regional landscape, culture, costumes, and jewellery.
Although not a centre for handicrafts itself, the patronage of the arts by the Mughals and Nizams attracted artisans from the region to Hyderabad. Such crafts include: Wootz steel, Filigree work, Bidriware, a metalwork handicraft from neighbouring Karnataka, which was popularised during the 18th century and has since been granted a Geographical Indication (GI) tag under the auspices of the WTO act; and Zari and Zardozi, embroidery works on textile that involve making elaborate designs using gold, silver and other metal threads. Chintz—a glazed calico textiles was originated in Golconda in 16th century. and another example of a handicraft drawn to Hyderabad is Kalamkari, a hand-painted or block-printed cotton textile that comes from cities in Andhra Pradesh. This craft is distinguished in having both a Hindu style, known as Srikalahasti and entirely done by hand, and an Islamic style, known as Machilipatnam which uses both hand and block techniques. Examples of Hyderabad's arts and crafts are housed in various museums including the Salar Jung Museum (housing "one of the largest one-man-collections in the world"), the Telangana State Archaeology Museum, the Nizam Museum, the City Museum and the Birla Science Museum.
Cuisine.
Hyderabadi cuisine comprises a broad repertoire of rice, wheat and meat dishes and the skilled use of various spices. Hyderabad is listed by UNESCO as a creative city of gastronomy. Hyderabadi "biryani" and Hyderabadi "haleem", with their blend of Mughlai and Arab cuisines, carry the national Geographical Indications tag. Hyderabadi cuisine is influenced to some extent by French, but more by Arabic, Turkish, Iranian and native Telugu and Marathwada cuisines. Popular native dishes include "nihari", "chakna", "baghara baingan" and the desserts "qubani ka meetha", "double ka meetha" and "kaddu ki kheer" (a sweet porridge made with sweet gourd).
Media.
One of Hyderabad's earliest newspapers, "The Deccan Times", was established in the 1780s. Major Telugu dailies published in Hyderabad are "Eenadu", "Sakshi" and "Namasthe Telangana", while major English papers are "The Times of India", "The Hindu" and "Deccan Chronicle". The major Urdu papers include "The Siasat Daily", "The Munsif Daily" and "Etemaad". The Secunderabad Cantonment Board established the first radio station in Hyderabad State around 1919. Deccan Radio was the first radio public broadcast station in the city starting on 3 February 1935, with FM broadcasting beginning in 2000. The available channels in Hyderabad include All India Radio, Radio Mirchi, Radio City, Red FM, Big FM and Fever FM.
Television broadcasting in Hyderabad began in 1974 with the launch of "Doordarshan", the government of India's public service broadcaster, which transmits two free-to-air terrestrial television channels and one satellite channel. Private satellite channels started in July 1992 with the launch of Star TV. Satellite TV channels are accessible via cable subscription, direct-broadcast satellite services or internet-based television. Hyderabad's first dial-up internet access became available in the early 1990s and was limited to software development companies. The first public internet access service began in 1995, with the first private sector internet service provider (ISP) starting operations in 1998. In 2015, high-speed public WiFi was introduced in parts of the city.
Education.
Public and private schools in Hyderabad are governed by the Board of Secondary Education, Telangana or Central Board of Secondary Education, depending on the affiliation and follow a "10+2+3" plan. About two-thirds of pupils attend privately run institutions. Languages of instruction include English, Hindi, Telugu and Urdu. Depending on the institution, students are required to sit the Secondary School Certificate or the Indian Certificate of Secondary Education. After completing secondary education, students enrol in schools or junior colleges with higher secondary facilities. Admission to professional graduation colleges in Hyderabad, many of which are affiliated with either Jawaharlal Nehru Technological University Hyderabad (JNTUH) or Osmania University (OU), is through the Engineering Agricultural and Medical Common Entrance Test (EAM-CET).
There are 13 universities in Hyderabad: six private universities, two deemed universities, six state universities, and three central universities. The central universities are the University of Hyderabad (Hyderabad Central University, HCU), Maulana Azad National Urdu University and the English and Foreign Languages University. Osmania University, established in 1918, was the first university in Hyderabad and as of 2012[ [update]] is India's second most popular institution for international students. The Dr. B. R. Ambedkar Open University, established in 1982, is the first distance-learning open university in India.
Hyderabad is home to a number of centres specialising in particular fields such as biomedical sciences, biotechnology and pharmaceuticals, such as the National Institute of Pharmaceutical Education and Research (NIPER), Centre for Cellular and Molecular Biology (CCMB), Centre for DNA Fingerprinting and Diagnostics (CDFD) and National Institute of Nutrition (NIN). Hyderabad has five major medical schools—Osmania Medical College, Gandhi Medical College, Nizam's Institute of Medical Sciences, Deccan College of Medical Sciences and Shadan Institute of Medical Sciences—and many affiliated teaching hospitals. An All India Institute of Medical Sciences has been sanctioned in the outskirts of Hyderabad. The Government Nizamia Tibbi College is a college of Unani medicine. Hyderabad is also the headquarters of the Indian Heart Association, a non-profit foundation for cardiovascular education.
Notable central institutions in Hyderabad include the NALSAR University of Law, Hyderabad (NLU), Indian Institute of Chemical Technology (IICT), National Geophysical Research Institute, National Institute of Rural Development, Indian Air Force Academy, National Industrial Security Academy, Central Institute of Tool Design, Institute of Public Enterprise, Administrative Staff College of India and the Sardar Vallabhbhai Patel National Police Academy. Technical and research institutions include the International Institute of Information Technology, Hyderabad (IIITH), Birla Institute of Technology and Science, Pilani – Hyderabad (BITS Pilani), Tata Institute of Fundamental Research Hyderabad (TIFR-H) and Indian Institute of Technology, Hyderabad (IIT-H) as well as agricultural engineering institutes such as the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) and the Acharya N. G. Ranga Agricultural University.Hyderabad also has schools of fashion design including NIFT Hyderabad, management schools including the Indian School of Business, ICFAI Foundation for Higher Education, and the National Academy of Agricultural Research Management (NAARM) offering undergraduate and postgraduate courses.
Sports.
At the professional level, the city has hosted national and international sports events such as the 2002 National Games of India, the 2003 Afro-Asian Games, the 2004 AP Tourism Hyderabad Open women's tennis tournament, the 2007 Military World Games, the 2009 World Badminton Championships and the 2009 IBSF World Snooker Championship. The city hosts several venues suitable for professional competition such as the Swarnandhra Pradesh Sports Complex for field hockey, the G. M. C. Balayogi Stadium in Gachibowli for athletics and football, and for cricket, the Lal Bahadur Shastri Stadium and Rajiv Gandhi International Cricket Stadium, home ground of the Hyderabad Cricket Association. Hyderabad has hosted many international cricket matches, including matches in the 1987 and the 1996 ICC Cricket World Cups. The Hyderabad cricket team competes in the first-class cricket tournament Ranji Trophy, List A Vijay Hazare Trophy and Twenty20 Syed Mushtaq Ali Trophy. Hyderabad is home to the Indian Premier League (IPL) franchise Sunrisers Hyderabad, champion of 2016 Indian Premier League. Previous franchise Deccan Chargers was the champion of 2009 Indian Premier League. The professional football club of the city Hyderabad FC competes in Indian Super League (ISL) and was the champions of 2021–22 Indian Super League.
During British rule, Secunderabad became a well-known sporting centre and many race courses, parade grounds and polo fields were built. Many elite clubs formed by the Nizams and the British such as the Secunderabad Club, the Nizam Club and the Hyderabad Race Club, which is known for its horse racing especially the annual Deccan derby, still exist. In more recent times, motorsports has become popular with the Andhra Pradesh Motor Sports Club organising popular events such as the Deccan <templatestyles src="Fraction/styles.css" />1⁄4 Mile Drag, TSD Rallies and 4x4 off-road rallying. The 2023 Hyderabad ePrix, at the Hyderabad Street Circuit, was the first FIA Formula E World Championship race in India.
Transport.
As of 2018[ [update]], the most commonly used forms of medium-distance transport in Hyderabad include government-owned services such as light railways and buses, as well as privately operated taxis and auto rickshaws. These altogether serve 3.5 million passengers daily. Bus services operate from the Mahatma Gandhi Bus Station in the city centre with a fleet of 3800 buses serving 3.3 million passengers.
Hyderabad Metro, a light-rail rapid transit system, was inaugurated in November 2017. As of 2020[ [update]] it is a 3-track network spread upon with 57 stations and is the third-largest metro rail network in India after Delhi Metro and Namma Metro. Hyderabad's Multi-Modal Transport System (MMTS), is a three-line suburban rail service with 121 services carrying 180,000 passengers daily. Complementing these government services are minibus routes operated by Setwin (Society for Employment Promotion & Training in Twin Cities). Intercity rail services operate from Hyderabad; the main, and largest, station is Secunderabad railway station, which serves as Indian Railways' South Central Railway zone headquarters and a hub for both buses and MMTS light rail services connecting Secunderabad and Hyderabad. Other major railway stations in Hyderabad are Hyderabad Deccan, Kacheguda, Begumpet, Malkajgiri and Lingampalli.
As of 2018[ [update]], there are over 5.3 million vehicles operating in the city, of which 4.3 million are two-wheelers and 1.04 million four-wheelers. The large number of vehicles coupled with relatively low road coverage—roads occupy only 9.5% of the total city area—has led to widespread traffic congestion especially since 80% of passengers and 60% of freight are transported by road. The Inner Ring Road, the Outer Ring Road, the Hyderabad Elevated Expressway, the longest flyover in India, and various interchanges, overpasses and underpasses were built to ease congestion. Maximum speed limits within the city are for two-wheelers and cars, for auto rickshaws and for light commercial vehicles and buses.
Hyderabad sits at the junction of three National Highways linking it to six other states: NH-44 runs from Srinagar, Jammu and Kashmir, in the north to Kanyakumari, Tamil Nadu, in the south; NH-65, runs east-west between Machilipatnam, Andhra Pradesh connects Hyderabad and Suryapet with Pune, Maharashtra; NH-163 links Hyderabad and Bhopalpatnam, Chhattisgarh; NH-765 links Hyderabad to Srisailam, Andhra Pradesh. Five state highways, SH-1 links Hyderabad, to Ramagundam, SH-2, SH-4, and SH-6, either start from, or pass through, Hyderabad.
Air traffic was previously handled via Begumpet Airport established in 1930, but this was replaced by Rajiv Gandhi International Airport (RGIA) () in 2008, capable of handling 25 million passengers and 150,000 metric-tonnes of cargo per annum. In 2020, Airports Council International, an autonomous body representing the world's airports, judged RGIA the Best Airport in Environment and Ambience and the Best Airport by Size and Region in the 15-25 million passenger category.
References.
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General and cited references.
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Further reading.
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East India Company
British trading company (1600–1874)
The East India Company (EIC) was an English, and later British, joint-stock company that was founded in 1600 and dissolved in 1874. It was formed to trade in the Indian Ocean region, initially with the East Indies (South Asia and Southeast Asia), and later with East Asia. The company gained control of large parts of the Indian subcontinent and Hong Kong. At its peak, the company was the largest corporation in the world by various measures and had its own armed forces in the form of the company's three presidency armies, totalling about 260,000 soldiers, twice the size of the British Army at certain times.
Originally chartered as the "Governor and Company of Merchants of London Trading into the East-Indies," the company rose to account for half of the world's trade during the mid-1700s and early 1800s, particularly in basic commodities including cotton, silk, indigo dye, sugar, salt, spices, saltpetre, tea, and later, opium. The company also initiated the beginnings of the British Raj in the Indian subcontinent.
The company eventually came to rule large areas of the Indian subcontinent, exercising military power and assuming administrative functions. Company-ruled areas in the region gradually expanded after the Battle of Plassey in 1757 and by 1858 most of modern India, Pakistan and Bangladesh was either ruled by the company or princely states closely tied to it by treaty. Following the Sepoy Rebellion of 1857, the Government of India Act 1858 led to the British Crown assuming direct control of present-day Bangladesh, Pakistan and India in the form of the new British Indian Empire.
The company subsequently experienced recurring problems with its finances, despite frequent government intervention. The company was dissolved in 1874 under the terms of the East India Stock Dividend Redemption Act enacted one year earlier, as the Government of India Act had by then rendered it vestigial, powerless, and obsolete. The official government machinery of the British Empire had assumed its governmental functions and absorbed its armies.
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Origins.
In 1577, Francis Drake set out on an expedition from England to plunder Spanish settlements in South America in search of gold and silver. Sailing in the "Golden Hind" he achieved this, and then sailed across the Pacific Ocean in 1579, known then only to the Spanish and Portuguese. Drake eventually sailed into the East Indies and came across the Moluccas, also known as the Spice Islands, and met Sultan Babullah. In exchange for linen, gold, and silver, the English obtained a large haul of exotic spices, including cloves and nutmeg. Drake returned to England in 1580 and became a hero; his circumnavigation raised an enormous amount of money for England's coffers, and investors received a return of some 5,000 percent. Thus started an important element in the eastern design during the late sixteenth century.
Soon after the Spanish Armada's defeat in 1588, the captured Spanish and Portuguese ships and cargoes enabled English voyagers to travel the globe in search of riches. London merchants presented a petition to Elizabeth I for permission to sail to the Indian Ocean. The aim was to deliver a decisive blow to the Spanish and Portuguese monopoly of far-eastern trade. Elizabeth granted her permission and in 1591, James Lancaster in the with two other ships, financed by the Levant Company, sailed from England around the Cape of Good Hope to the Arabian Sea, becoming the first English expedition to reach India that way. Having sailed around Cape Comorin to the Malay Peninsula, they preyed on Spanish and Portuguese ships there before returning to England in 1594.
The biggest prize that galvanised English trade was the seizure of a large Portuguese carrack, the "Madre de Deus", by Walter Raleigh and the Earl of Cumberland at the Battle of Flores on 13 August 1592. When she was brought in to Dartmouth she was the largest vessel ever seen in England and she carried chests of jewels, pearls, gold, silver coins, ambergris, cloth, tapestries, pepper, cloves, cinnamon, nutmeg, benjamin (a highly aromatic balsamic resin used for perfumes and medicines), red dye, cochineal and ebony. Equally valuable was the ship's rutter (mariner's handbook) containing vital information on the China, India, and Japan trade routes.
In 1596, three more English ships sailed east but all were lost at sea. A year later however saw the arrival of Ralph Fitch, an adventurer merchant who, with his companions, had made a remarkable nine year overland journey to Mesopotamia, the Persian Gulf, the Indian Ocean, India and Southeast Asia. Fitch was consulted on Indian affairs and gave even more valuable information to Lancaster.
History.
Formation.
In 1599, a group of prominent merchants and explorers met to discuss a potential East Indies venture under a royal charter. Besides Fitch and Lancaster, the group included Stephen Soame, then Lord Mayor of London; Thomas Smythe, a powerful London politician and administrator who had established the Levant Company; Richard Hakluyt, writer and proponent of British colonisation of the Americas; and several other sea-farers who had served with Drake and Raleigh.
On 22 September, the group stated their intention "to venture in the pretended voyage to the East Indies (the which it may please the Lord to prosper)" and to themselves invest £30,133 (over £4,000,000 in today's money). Two days later, the "Adventurers" reconvened and resolved to apply to the Queen for support of the project. Although their first attempt had not been completely successful, they sought the Queen's unofficial approval to continue. They bought ships for the venture and increased their investment to £68,373.
They convened again a year later, on 31 December 1600, and this time they succeeded; the Queen responded favourably to a petition by George, Earl of Cumberland and 218 others, including James Lancaster, Sir John Harte, Sir John Spencer (both of whom had been Lord Mayor of London), the adventurer Edward Michelborne, the nobleman William Cavendish and other aldermen and citizens. She granted her charter to their corporation named Governor and Company of Merchants of London trading into the East Indies. For a period of fifteen years, the charter awarded the company a monopoly on English trade with all countries east of the Cape of Good Hope and west of the Straits of Magellan. Any traders there without a licence from the company were liable to forfeiture of their ships and cargo (half of which would go to the Crown and half to the company), as well as imprisonment at the "royal pleasure".
The charter named Thomas Smythe as the first governor of the company, and 24 directors (including James Lancaster) or "committees", who made up a Court of Directors. They, in turn, reported to a Court of Proprietors, who appointed them. Ten committees reported to the Court of Directors. By tradition, business was initially transacted at the Nags Head Inn, opposite St Botolph's church in Bishopsgate, before moving to East India House on Leadenhall Street.
Early voyages to the East Indies.
Sir James Lancaster commanded the first East India Company voyage in 1601 aboard . The following year, whilst sailing in the Malacca Straits, Lancaster took the rich 1,200 ton Portuguese carrack "Sao Thome" carrying pepper and spices. The booty enabled the voyagers to set up two "factories" (trading posts) – one at Bantam on Java and another in the Moluccas (Spice Islands) before leaving. On return to England in 1603, they learned of Elizabeth's death, but Lancaster was knighted by the new king, James I, on account of the voyage's success. By this time, the war with Spain had ended but the company had profitably breached the Spanish-Portuguese duopoly; new horizons opened for the English.
In March 1604, Sir Henry Middleton commanded the company's second voyage. General William Keeling, a captain during the second voyage, led the third voyage aboard "Red Dragon" from 1607 to 1610 along with "Hector" under Captain William Hawkins and "Consent" under Captain David Middleton.
Early in 1608, Alexander Sharpeigh was made captain of the company's "Ascension", and general or commander of the fourth voyage. Thereafter two ships, "Ascension" and "Union" (captained by Richard Rowles), sailed from Woolwich on 14 March 1608. This expedition was lost.
Initially, the company struggled in the spice trade because of competition from the Dutch East India Company. This rivalry led to military skirmishes, with each company establishing fortified trading posts, fleets, and alliances with local rulers. The Dutch, better financed and supported by their government, gained the upper hand by establishing a stronghold in the spice islands (now Indonesia), enforcing a near-monopoly through aggressive policies that eventually drove the EIC to seek trade opportunities in India instead. The English company opened a factory (trading post) in Bantam on Java on its first voyage, and imports of pepper from Java remained an important part of the company's trade for twenty years.
English traders frequently fought their Dutch and Portuguese counterparts in the Indian Ocean. The company achieved a major victory over the Portuguese in the Battle of Swally in 1612, at Suvali in Surat. The company decided to explore the feasibility of a foothold in mainland India, with official sanction from both Britain and the Mughal Empire, and requested that the Crown launch a diplomatic mission.
Foothold in India.
Company ships docked at Surat in Gujarat in 1608. The company's first Indian factory was established in 1611 at Masulipatnam on the Andhra Coast of the Bay of Bengal, and its second in 1615 at Surat. The high profits reported by the company after landing in India initially prompted James I to grant subsidiary licences to other trading companies in England. However, in 1609, he renewed the East India Company's charter for an indefinite period, with the proviso that its privileges would be annulled if trade was unprofitable for three consecutive years.
In 1615, James I instructed Sir Thomas Roe to visit the Mughal Emperor Nur-ud-din Salim Jahangir (r. 1605–1627) to arrange for a commercial treaty that would give the company exclusive rights to reside and establish factories in Surat and other areas. In return, the company offered to provide the Emperor with goods and rarities from the European market. This mission was highly successful, and Jahangir sent a letter to James through Sir Thomas Roe:
<templatestyles src="Template:Blockquote/styles.css" />Upon which assurance of your royal love I have given my general command to all the kingdoms and ports of my dominions to receive all the merchants of the English nation as the subjects of my friend; that in what place soever they choose to live, they may have free liberty without any restraint; and at what port soever they shall arrive, that neither Portugal nor any other shall dare to molest their quiet; and in what city soever they shall have residence, I have commanded all my governors and captains to give them freedom answerable to their own desires; to sell, buy, and to transport into their country at their pleasure.
For confirmation of our love and friendship, I desire your Majesty to command your merchants to bring in their ships of all sorts of rarities and rich goods fit for my palace; and that you be pleased to send me your royal letters by every opportunity, that I may rejoice in your health and prosperous affairs; that our friendship may be interchanged and eternal.
Expansion in present day South Asia.
The company, which benefited from the imperial patronage, soon expanded its commercial trading operations. It eclipsed the Portuguese Estado da Índia, which had established bases in Goa, Chittagong, and Bombay; Portugal later ceded Bombay to England as part of the dowry of Catherine of Braganza on her marriage to King Charles II. The East India Company also launched a joint attack with the Dutch United East India Company (VOC) on Portuguese and Spanish ships off the coast of China that helped secure EIC ports in China, independently attacking the Portuguese in the Persian Gulf Residencies primarily for political reasons. The company established trading posts in Surat (1619) and Madras (1639). By 1647, the company had 23 factories and settlements in India, and 90 employees. Many of the major factories became some of the most populated and commercially influential cities in Bengal, including the walled forts of Fort William in Bengal, Fort St George in Madras, and Bombay Castle.
The first century of the Company, despite its original profits coming primarily from piracy in the Spice Islands between competing European powers and their companies, saw the East India Company change focus after suffering a major setback in 1623 when their factory in Amboyna in the Moluccas was attacked by the Dutch. This compelled the company to formally abandon their efforts in the Spice Islands, and turn their attention to Bengal where, by this time, they were making steady, if less exciting, profits. After gaining the indifferent patronage of the Mughal Empire, whose cities were 'the megacities of their time' and whose wealth was unrivaled outside of Asia in the 17th century, the Company's first century in the Mughal-ruled areas was spent cultivating their relationship with the Mughal Dynasty, and conducting peaceful trade at great profit. At first it should be said the EIC was drawn into the Mughal system, acting as a kind of vassal to Mughal authority in present-day Bangladesh: it was from this position that the Company would ultimately outplay and outmanoeuvre all competing powers in the region, to eventually use that very system to hold power itself. What started as trading posts on undesirable land were developed into sprawling factory complexes with hundreds of workers sending exotic goods to England and managing protected points to export English finished goods to local merchants. The Company's initial rise in Bengal and successes generally came at the expense of competing European powers through the art of currying favours and well-placed bribes, as the Company was matched at every step with French expansion in the region (whose equivalent company carried substantial royal support). Throughout the entire century the company only resorted to force against the Mughals once, with terrible consequences. The Anglo-Mughal war (1686–1690) was a complete defeat, ending when the EIC effectively swore fealty to the Mughals to get their factories back.
The East India Company's fortunes changed for the better in 1707 when Bengal and other regions under Mughal rule fell into anarchy after the death of the Mughal Emperor Aurangzeb. A series of large-scale rebellions, and the collapse of the Mughal taxation system led to the effective independence of virtually all of the pre-1707 Mughal fiefs and holdings, with their capital Delhi routinely under the control of Maratha, Afghan, or usurper generals' armies. The EIC was able to take advantage of this chaos, slowly assuming direct control of the province of Bengal, and fighting numerous wars against the French for control of the east coast of the subcontinent. The Company's position in the Mughal court as it fell apart made it possible to sponsor various powerful people on the subcontinent as they individually contended with others, steadily amassing more land and power in India to themselves.
In the 18th Century, the primary source of the Company's profits in Bengal became taxation in conquered and controlled provinces, as the factories became fortresses and administrative hubs for networks of tax collectors that expanded into enormous cities. The Mughal Empire was the richest in the world in 1700, and the East India Company tried to strip it bare for a century thereafter. Dalrymple calls it "the single largest transfer of wealth until the Nazis." What was in the 17th century the production capital of the world for textiles was forced to become a market for British-made textiles. Statues, jewels, and various other valuables were moved from the palaces of Bengal to the townhouses of the English countryside. Bengal in particular suffered the worst of Company tax farming, highlighted by the Great Bengal famine of 1770.
The primary tool of expansion for the company was the Sepoy. The Sepoys were locally raised with European training and equipment, who changed warfare in present-day South Asia. Mounted forces and their superior mobility had been king on the region's battlefields for a thousand years, with cannon so well integrated that the Mughals fought with cannon mounted on elephants; all were no match to line infantry with decent discipline supported with field cannon. Repeatedly, a few thousand company sepoys fought vastly larger Mughal forces numerically and came out victorious. Afghan, Mughal and Maratha factions started creating their own European-style forces, often with French equipment, as the chaos intensified and the stakes were raised. Ultimately, the company won out, generally through as much diplomacy and state-craft as through fraud and deception. The gradual rise of the East India Company within the Mughal network culminated in the Second Anglo-Maratha War, in which the Company successfully ousted the Maratha, the Empire's official protectors, at the high water point in their rise to power, and installed a young Mughal Prince as Emperor, with the Company as the de jure protectors of the Empire from their position of direct control in Bengal. This relationship was repeatedly strained as the Company continued its expansion and exploitation, however it lasted in some form until 1858, when the last Mughal Emperor was exiled as the Company was disbanded and its assets were taken over by the British Crown.
In 1634, the Mughal emperor Shah Jahan extended his hospitality to English traders to Bengal, the richest region of the empire, and in 1717 customs duties were completely waived for the English in Bengal. By then, the Company's mainstay businesses were in cotton, silk, opium, indigo dye, saltpetre and tea. Meanwhile, the Dutch, the Company's most aggressive competitors, had expanded their monopoly of the spice trade in the Straits of Malacca by ousting the Portuguese in 1640–1641. With reduced Portuguese and Spanish influence in the region, the EIC and VOC entered a period of intense competition, resulting in the Anglo-Dutch wars of the 17th and 18th centuries. The British were also interested in trans-Himalayan trade routes, as they would create access to untapped markets for British manufactured goods in Tibet and China. This economic interest was showcased by the Anglo-Nepalese war (1814–1816).
Expansion throughout Asia.
Within the first two decades of the 17th century, the Dutch East India Company or "Vereenigde Oostindische Compagnie", (VOC) was the wealthiest commercial operation in the world with 50,000 employees worldwide and a private fleet of 200 ships. It specialised in the spice trade and gave its shareholders 40% annual dividend.
The British East India Company was fiercely competitive with the Dutch and French throughout the 17th and 18th centuries over spices from the Spice Islands. Some spices, at the time, could only be found on these islands, such as nutmeg and cloves; and they could bring profits as high as 400 per cent from one voyage.
The tension was so high between the Dutch and the British East Indies Trading Companies that it escalated into at least four Anglo-Dutch wars: 1652–1654, 1665–1667, 1672–1674 and 1780–1784.
Competition arose in 1635 when Charles I granted a trading licence to Sir William Courteen, which permitted the rival Courteen association to trade with the east at any location in which the EIC had no presence.
In an act aimed at strengthening the power of the EIC, King Charles II granted the EIC (in a series of five acts around 1670) the rights to autonomous territorial acquisitions, to mint money, to command fortresses and troops and form alliances, to make war and peace, and to exercise both civil and criminal jurisdiction over the acquired areas.
In 1689, a Mughal fleet commanded by Sidi Yaqub attacked Bombay. After a year of resistance the EIC surrendered in 1690, and the company sent envoys to Aurangzeb's camp to plead for a pardon. The company's envoys had to prostrate themselves before the emperor, pay a large indemnity, and promise better behaviour in the future. The emperor withdrew his troops, and the company subsequently re-established itself in Bombay and set up a new base in Calcutta.
Slavery 1621–1834.
The East India Company's archives suggest its involvement in the slave trade began in 1684, when a Captain Robert Knox was ordered to buy and transport 250 slaves from Madagascar to St. Helena. The East India Company began using and transporting slaves in Asia and the Atlantic in the early 1620s, according to the Encyclopædia Britannica,<ref name="topic/East"></ref> or in 1621, according to Richard Allen. Eventually, the company ended the trade in 1834 after numerous legal threats from the British state and the Royal Navy in the form of the West Africa Squadron, which discovered various ships had contained evidence of the illegal trade.
Japan.
In 1613, during the rule of Tokugawa Hidetada of the Tokugawa shogunate, the British ship , under the command of Captain John Saris, was the first English ship to call on Japan. Saris was the chief factor of the EIC's trading post in Java, and with the assistance of William Adams, an English sailor who had arrived in Japan in 1600, he was able to gain permission from the ruler to establish a commercial house in Hirado on the Japanese island of Kyushu:
<templatestyles src="Template:Blockquote/styles.css" />We give free license to the subjects of the King of Great Britaine, Sir Thomas Smythe, Governor and Company of the East Indian Merchants and Adventurers forever safely come into any of our ports of our Empire of Japan with their shippes and merchandise, without any hindrance to them or their goods, and to abide, buy, sell and barter according to their own manner with all nations, to tarry here as long as they think good, and to depart at their pleasure.
Unable to obtain Japanese raw silk for export to China, and with their trading area reduced to Hirado and Nagasaki from 1616 onwards, the company closed its factory in 1623.
Anglo-Mughal war.
The first of the Anglo-Indian wars occurred in 1686 when the company conducted naval operations against Shaista Khan, the governor of Mughal Bengal. This led to the siege of Bombay and the subsequent intervention of the Mughal Emperor, Aurangzeb. Subsequently, the English company was defeated and fined.
Mughal convoy piracy incident of 1695
In September 1695, Captain Henry Every, an English pirate on board the , reached the Straits of Bab-el-Mandeb, where he teamed up with five other pirate captains to make an attack on the Indian fleet returning from the annual pilgrimage to Mecca. The Mughal convoy included the treasure-laden "Ganj-i-Sawai", reported to be the greatest in the Mughal fleet and the largest ship operational in the Indian Ocean, and its escort, the "Fateh Muhammed". They were spotted passing the straits en route to Surat. The pirates gave chase and caught up with the "Fateh Muhammed" some days later, and meeting little resistance, took some £40,000 of silver.
Every continued in pursuit and managed to overhaul "Ganj-i-Sawai", which resisted strongly before eventually striking. "Ganj-i-Sawai" carried enormous wealth and, according to contemporary East India Company sources, was carrying a relative of the Grand Mughal, though there is no evidence to suggest that it was his daughter and her retinue. The loot from the "Ganj-i-Sawai" had a total value between £325,000 and £600,000, including 500,000 gold and silver pieces, and has become known as the richest ship ever taken by pirates.
When the news arrived in England it caused an outcry. To appease Aurangzeb, the East India Company promised to pay all financial reparations, while Parliament declared the pirates "hostis humani generis" ("the enemy of humanity"). In mid-1696 the government issued a £500 bounty on Every's head and offered a free pardon to any informer who disclosed his whereabouts. The first worldwide manhunt in recorded history was underway.
The plunder of Aurangzeb's treasure ship had serious consequences for the English East India Company. The furious Mughal Emperor Aurangzeb ordered Sidi Yaqub and Nawab Daud Khan to attack and close four of the company's factories in India and imprison their officers, who were almost lynched by a mob of angry Mughals, blaming them for their countryman's depredations, and threatened to put an end to all English trading in India. To appease Emperor Aurangzeb and particularly his Grand Vizier Asad Khan, Parliament exempted Every from all of the Acts of Grace (pardons) and amnesties it would subsequently issue to other pirates.
China.
The British began trading with China in 1699. This fact is recorded from the Chinese side in "The Draft History of the Qing" under the year Kangxi 37 (1698). The apparent discrepancy between the British and Chinese sources can be explained by the fact that Chinese New Year of 1699 did not fall until January 31, so that any treaties entered into in January would have been logged under Kangxi 37 rather than Kangxi 38. In 1715 the Company established a permanent "factory" in Guangzhou (Canton).
The company started selling opium to Chinese merchants in the 1770s in exchange for goods like porcelain and tea, causing a series of opioid addiction outbreaks across China in 1820. The ruling Qing dynasty outlawed the opium trade in 1796 and 1800, but British merchants continued illegally nonetheless. The Qing took measures to prevent the East India Company from selling opium, and destroyed tens of thousands of chests of opium already in the country. This series of events led to the First Opium War in 1839, which involved a succession of British naval attacks along the Chinese coast over the course of several months. As part of the Treaty of Nanjing in 1842, the Qing were forced to give British merchants special treatment and the right to sell opium. The Chinese also ceded territory to the British, including the island of Hong Kong.
Forming a complete monopoly.
Trade monopoly.
The prosperity that the officers of the company enjoyed allowed them to return to Britain and establish sprawling estates and businesses, and to obtain political power, such as seats in the House of Commons. Ship captains sold their appointments to successors for up to £500. As recruits aimed to return to Britain wealthy by securing Indian money, their loyalties to their homeland increased.
The company developed a lobby in the English parliament. Pressure from ambitious tradesmen and former company associates (pejoratively termed "Interlopers" by the company), who wanted to establish private trading firms in India, led to the passing of the deregulating act in 1694.
United Kingdom legislation
This act allowed any English firm to trade with India, unless specifically prohibited by act of parliament, thereby annulling the charter that had been in force for almost 100 years. When the East India Company Act 1697 (9 Will. 3. c. 44) was passed in 1697, a new "parallel" East India Company (officially titled the "English Company Trading to the East Indies") was floated under a state-backed indemnity of £2 million. The powerful stockholders of the old company quickly subscribed a sum of £315,000 in the new concern, and dominated the new body. The two companies wrestled with each other for some time, both in England and in India, for a dominant share of the trade.
It quickly became evident that, in practice, the original company faced scarcely any measurable competition. The companies merged in 1708, by a tripartite indenture involving both companies and the state, with the charter and agreement for the new "United Company of Merchants of England Trading to the East Indies" being awarded by Sidney Godolphin, 1st Earl of Godolphin. Under this arrangement, the merged company lent a sum of £3,200,000 to the Treasury, in return for exclusive privileges for the next three years, after which the situation was to be reviewed. The amalgamated company became the "United Company of Merchants of England Trading to the East Indies".
United Kingdom legislation
A constant battle between the company lobby and Parliament followed for decades. The company sought a permanent establishment, while Parliament would not willingly allow it greater autonomy and so relinquish the opportunity to exploit the company's profits. In 1712, another act renewed the status of the company, though the debts were repaid. By 1720, 15% of British imports were from India, almost all passing through the company, which reasserted the influence of the company lobby. The licence was prolonged until 1766 by yet another act in 1730.
At this time, Britain and France became bitter rivals. Frequent skirmishes between them took place for control of colonial possessions. In 1742, fearing the monetary consequences of a war, the British government agreed to extend the deadline for the licensed exclusive trade by the company in India until 1783, in return for a further loan of £1 million. Between 1756 and 1763, the Seven Years' War diverted the state's attention towards consolidation and defence of its territorial possessions in Europe and its colonies in North America.
The war partly took place in the Indian theatre, between the company troops and the French forces. In 1757, the Law Officers of the Crown delivered the Pratt–Yorke opinion distinguishing overseas territories acquired by right of conquest from those acquired by private treaty. The opinion asserted that, while the Crown of Great Britain enjoyed sovereignty over both, only the property of the former was vested in the Crown.
With the advent of the Industrial Revolution, Britain surged ahead of its European rivals. Demand for Indian commodities was boosted by the need to sustain troops and the economy during the war, and by the increased availability of raw materials and efficient methods of production. As home to the revolution, Britain experienced higher standards of living. Its ever-growing cycle of prosperity, demand and production had a profound influence on overseas trade. The company became the single largest player in the British global market. In 1801 Henry Dundas reported to the House of Commons that
<templatestyles src="Template:Blockquote/styles.css" />... on the 1st March, 1801, the debts of the East India Company amounted to 5,393,989"l." their effects to 15,404,736"l." and that their sales had increased since February 1793, from 4,988,300"l." to 7,602,041"l."
Saltpetre trade.
Sir John Banks, a businessman from Kent who negotiated an agreement between the king and the company, began his career in a syndicate arranging contracts for victualling the navy, an interest he kept up for most of his life. He knew that Samuel Pepys and John Evelyn had amassed a substantial fortune from the Levant and Indian trades.
He became a director and later, as governor of the East India Company in 1672, he arranged a contract which included a loan of £20,000 and £30,000 worth of saltpetre—also known as potassium nitrate, a primary ingredient in gunpowder—for the King "at the price it shall sell by the candle"—that is by auction—where bidding could continue as long as an inch-long candle remained alight.
Outstanding debts were also agreed and the company permitted to export 250 tons of saltpetre. Again in 1673, Banks successfully negotiated another contract for 700 tons of saltpetre at £37,000 between the king and the company. So high was the demand from armed forces that the authorities sometimes turned a blind eye on the untaxed sales. One governor of the company was even reported as saying in 1864 that he would rather have the saltpetre made than the tax on salt.
Basis for the monopoly.
Colonial monopoly.
The Seven Years' War (1756–1763) resulted in the defeat of the French forces, limited French imperial ambitions, and stunted the influence of the Industrial Revolution in French territories. Robert Clive, the Governor-General, led the company to a victory against Joseph François Dupleix, the commander of the French forces in India, and recaptured Fort St George from the French. The company took this respite to seize Manila in 1762.
By the Treaty of Paris, France regained the five establishments captured by the British during the war (Pondichéry, Mahe, Karaikal, Yanam and Chandernagar) but was prevented from erecting fortifications and keeping troops in Bengal (art. XI). Elsewhere in India, the French were to remain a military threat, particularly during the War of American Independence, and up to the capture of Pondichéry in 1793 at the outset of the French Revolutionary Wars without any military presence. Although these small outposts remained French possessions for the next two hundred years, French ambitions on Indian territories were effectively laid to rest, thus eliminating a major source of economic competition for the company.
In May 1772 the EIC stock price rose significantly. In June Alexander Fordyce lost £300,000 shorting EIC stock, leaving his partners liable for an estimated £243,000 in debts. As this information became public, 20–30 banks across Europe collapsed during the British credit crisis of 1772-1773. In India alone, the company had bill debts of £1.2 million. It seems that EIC directors James Cockburn and George Colebrooke were "bulling" the Amsterdam market during 1772. The root of this crisis in relation to the East India Company came from the prediction by Isaac de Pinto that 'peace conditions plus an abundance of money would push East Indian shares to 'exorbitant heights.'
<templatestyles src="Template:Blockquote/styles.css" />In September the company took out a loan from the Bank of England, to be repaid from the sale of goods later that month. But with buyers scarce,
most of the sale had to be postponed, and when the loan fell due, the company's coffers were empty. On October 29 the bank refused to renew the loan. That decision set in motion a chain of events that made the American Revolution inevitable. The East India Company had eighteen million pounds of tea sitting in British warehouses. A huge amount of tea as assets which were lying unsold. Selling it in a hurry would do wonders for its finances.
On 14 January 1773 the directors of the EIC asked for a government loan and unlimited access to the tea market in the American colonies, both of which were granted. In August 1773 the Bank of England assisted the EIC with a loan.
The East India Company had also been granted competitive advantages over colonial American tea importers to sell tea from its colonies in Asia in American colonies. This led to the Boston Tea Party of 1773 in which protesters boarded British ships and threw the tea overboard. When protesters successfully prevented the unloading of tea in three other colonies and in Boston, Governor Thomas Hutchinson of the Province of Massachusetts Bay refused to allow the tea to be returned to Britain. This was one of the incidents which led to the American Revolution and independence of the American colonies.
The company's trade monopoly with India was abolished in the Charter Act 1813. The monopoly with China was ended in 1833, ending the trading activities of the company and rendering its activities purely administrative.
Disestablishment.
In the aftermath of the Indian Rebellion of 1857 and under the provisions of the Government of India Act 1858, the British Government nationalised the company. The British government took over its Indian possessions, its administrative powers and machinery, and its armed forces.
The company had already divested itself of its commercial trading assets in India in favour of the UK government in 1833, with the latter assuming the debts and obligations of the company, which were to be serviced and paid from tax revenue raised in India. In return, the shareholders voted to accept an annual dividend of 10.5%, guaranteed for forty years, likewise to be funded from India, with a final pay-off to redeem outstanding shares. The debt obligations continued beyond dissolution and were only extinguished by the UK government during the Second World War.
The company remained in existence in vestigial form, continuing to manage the tea trade on behalf of the British Government (and the supply of Saint Helena) until the East India Stock Dividend Redemption Act 1873 came into effect, on 1 January 1874. This act provided for the formal dissolution of the company on 1 June 1874, after a final dividend payment and the commutation or redemption of its stock. "The Times" commented on 8 April 1873:
<templatestyles src="Template:Blockquote/styles.css" />It accomplished a work such as in the whole history of the human race no other trading Company ever attempted, and such as none, surely, is likely to attempt in the years to come.
Establishments in Britain.
The company's headquarters in London, from which much of India was governed, was East India House in Leadenhall Street. After occupying premises in Philpot Lane from 1600 to 1621; in Crosby House, Bishopsgate from 1621 to 1638; and in Leadenhall Street from 1638 to 1648, the company moved into Craven House, an Elizabethan mansion in Leadenhall Street. The building had become known as East India House by 1661. It was completely rebuilt and enlarged in 1726–1729 and further significantly remodelled and expanded in 1796–1800. It was finally vacated in 1860 and demolished in 1861–1862. The site is now occupied by the Lloyd's building.
In 1607, the company decided to build its own ships and leased a yard on the River Thames at Deptford. By 1614, the yard having become too small, an alternative site was acquired at Blackwall: the new yard was fully operational by 1617. It was sold in 1656, although for some years East India Company ships continued to be built and repaired there under the new owners.
In 1803 an act of Parliament, promoted by the East India Company, established the East India Dock Company, with the aim of establishing a new set of docks (the East India Docks) primarily for the use of ships trading with India. The existing Brunswick Dock, part of the Blackwall Yard site, became the Export Dock; while a new Import Dock was built to the north. In 1838 the East India Dock Company merged with the West India Dock Company. The docks were taken over by the Port of London Authority in 1909 and closed in 1967.
The East India College was founded in 1806 as a training establishment for "writers" (i.e. clerks) in the company's service. It was initially located in Hertford Castle, but moved in 1809 to purpose-built premises at Hertford Heath, Hertfordshire. In 1858 the college closed; but in 1862 the buildings reopened as a public school, now Haileybury and Imperial Service College.
The East India Company Military Seminary was founded in 1809 at Addiscombe, near Croydon, Surrey, to train young officers for service in the company's armies in India. It was based in Addiscombe Place, an early 18th-century mansion. The government took it over in 1858 and renamed it the Royal Indian Military College. In 1861 it was closed, and the site was subsequently redeveloped.
In 1818, the company entered into an agreement by which those of its servants who were certified insane in India might be cared for at Pembroke House, Hackney, London, a private lunatic asylum run by Dr George Rees until 1838, and thereafter by Dr William Williams. The arrangement outlasted the company itself, continuing until 1870, when the India Office opened its own asylum, the Royal India Asylum, at Hanwell, Middlesex.
The East India Club in London was formed in 1849 for officers of the company. The Club still exists today as a private gentlemen's club with its club house situated at 16 St James's Square, London.
Symbols.
Flags.
The English East India Company flag changed over time, with a canton based on the flag of the contemporary Kingdom, and a field of 9-to-13 alternating red and white stripes.
From 1600, the canton consisted of a St George's Cross representing the Kingdom of England. With the Acts of Union 1707, the canton was changed to the new Union Flag—consisting of an English St George's Cross combined with a Scottish St Andrew's cross—representing the Kingdom of Great Britain. After the Acts of Union 1800 that joined Ireland with Great Britain to form the United Kingdom of Great Britain and Ireland, the canton of the East India Company flag was altered accordingly to include a Saint Patrick's Saltire.
There has been much debate about the number and order of stripes in the field of the flag. Historical documents and paintings show variations from 9-to-13 stripes, with some images showing the top stripe red and others showing it white.
At the time of the American Revolution the East India Company flag was nearly identical to the Grand Union Flag. Historian Charles Fawcett argued that the East India Company Flag inspired the Stars and Stripes of America.
Coat of arms.
The East India Company's original coat of arms was granted in 1600. The blazon of the arms is as follows: "Azure, three ships with three masts, rigged and under full sail, the sails, pennants and ensigns Argent, each charged with a cross Gules; on a chief of the second a pale quarterly Azure and Gules, on the 1st and 4th a fleur-de-lis or, on the 2nd and 3rd a leopard or, between two roses Gules seeded Or barbed Vert." The shield had as a crest: "A sphere without a frame, bounded with the Zodiac in bend Or, between two pennants flottant Argent, each charged with a cross Gules, over the sphere the words "" (Latin: God Indicates). The supporters were two sea lions (lions with fishes' tails) and the motto was (Latin: Where God Leads, Nothing Harms).
The East India Company's later arms, granted in 1698, were: "Argent a cross Gules; in the dexter chief quarter an escutcheon of the arms of France and England quarterly, the shield ornamentally and regally crowned Or." The crest was: "A lion rampant guardant Or holding between the forepaws a regal crown proper." The supporters were: "Two lions rampant guardant Or, each supporting a banner erect Argent, charged with a cross Gules." The motto was (Latin: Under the auspices of the King and the Parliament of England).
Merchant mark.
When the East India Company was chartered in 1600, it was still customary for individual merchants or members of companies such as the Company of Merchant Adventurers to have a distinguishing merchant's mark which often included the mystical "Sign of Four" and served as a trademark. The East India Company's merchant mark consisted of a "Sign of Four" atop a heart within which was a saltire between the lower arms of which were the initials "EIC". This mark was a central motif of the East India Company's coinage and forms the central emblem displayed on the Scinde Dawk postage stamps.
Ships.
Ships of the East India Company were called East Indiamen or simply "Indiamen". Their names were sometimes prefixed with the initials "HCS", standing for "Honourable Company's Service" or "Honourable Company's Ship", such as and .
During the French Revolutionary and Napoleonic Wars, the East India Company arranged for letters of marque for its vessels such as "Lord Nelson". This was not so that they could carry cannon to fend off warships, privateers, and pirates on their voyages to India and China (that they could do without permission) but so that, should they have the opportunity to take a prize, they could do so without being guilty of piracy. Similarly, "Earl of Mornington", an East India Company packet ship of only six guns, also sailed under a letter of marque.
In addition, the company had its own navy, the Bombay Marine, equipped with warships such as . These vessels often accompanied vessels of the Royal Navy on expeditions, such as the Invasion of Java.
At the Battle of Pulo Aura, which was probably the company's most notable naval victory, Nathaniel Dance, Commodore of a convoy of Indiamen and sailing aboard the , led several Indiamen in a skirmish with a French squadron, driving them off. Some six years earlier, on 28 January 1797, five Indiamen, "Woodford", under Captain Charles Lennox, "Taunton-Castle", Captain Edward Studd, "Canton", Captain Abel Vyvyan, "Boddam", Captain George Palmer, and , Captain John Christian Lochner, had encountered Admiral de Sercey and his squadron of frigates. On this occasion the Indiamen succeeded in bluffing their way to safety, and without any shots even being fired. Lastly, on 15 June 1795, "General Goddard" played a large role in the capture of seven Dutch East Indiamen off St Helena.
East Indiamen were large and strongly built, and when the Royal Navy was desperate for vessels to escort merchant convoys, it bought several of them to convert to warships. "Earl of Mornington" became HMS "Drake". Other examples include:
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Their design as merchant vessels meant that their performance in the warship role was underwhelming and the Navy converted them to transports.
Records.
Unlike all other British Government records, the records from the East India Company (and its successor the India Office) are not in The National Archives at Kew, London, but are held by the British Library in London as part of the Asia, Pacific and Africa Collections. The catalogue is searchable online in the "Access to Archives" catalogues. Many of the East India Company records are freely available online under an agreement that the Families in British India Society has with the British Library. Published catalogues exist of East India Company ships' journals and logs, 1600–1834; accompanying catalogues also cover the company's daughter institutions, including the East India Company College, Haileybury, and Addiscombe Military Seminary.
"The Asiatic Journal and Monthly Register for British India and its Dependencies", first issued in 1816, was sponsored by the East India Company, and includes much information relating to its work.
References.
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Further reading.
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