After the fall of the Mughals, an English trading company took over India. The East India Company at first cared only for smooth trade, but after the Bengal famine of 1770 it began to exercise power with some responsibility. Railways and telegraph eased communication and also helped curb resistance, while its agrarian and commercial policies ruined the economy and drained India's wealth. By the 1830s ruined peasants and weavers were emigrating to plantations in British Empire countries.
1. Establishment of British Raj
- Buxar was the real foundation battle for British dominion in India. After it the Company ceased to be a company of merchants and became a formidable political force.
- Clive, appointed Governor of Fort William, disliked Vansittart's decision restoring Oudh to Shah Alam and reopened talks with Shuja-ud-daulah; two treaties of Allahabad followed.
- Emperor Shah Alam II granted the Diwani (revenue administration) of Bengal, Bihar and Orissa to the Company and was to get Allahabad and Kora plus 26 lakhs of rupees a year. Oudh went back to Shuja-ud-daula on payment of war indemnity.