Chapter 2, “From Trade to Territory,” explains how the English East India Company transformed from a small trading body into the dominant political power in India.

  • The Power Vacuum: After the death of Aurangzeb in 1707, the last powerful Mughal ruler, regional governors (subadars) and large zamindars began asserting their authority and establishing regional kingdoms.
  • Symbolic Importance: Although the empire weakened and Delhi lost its status as an effective center, Mughal emperors remained symbolically important; for instance, Bahadur Shah Zafar was seen as the natural leader during the 1875 rebellion.
  • Royal Charter: In 1600, the Company acquired a charter from Queen Elizabeth I, granting it the sole right to trade with the East, meaning no other English trading group could compete with it.
  • Mercantilism: The Company’s business model involved buying goods cheaply in India and selling them at higher prices in Europe.
  • Trade Rivalries: The English faced stiff competition from other European powers—the Portuguese, Dutch, and French—who all wanted to buy the same high-quality Indian goods: cotton, silk, pepper, cloves, cardamom, and cinnamon.
  • Conflict and Fortification: Competition led to fierce “trade wars” where companies sank each other’s ships and fortified their trading posts, which often led to conflicts with local Indian rulers.
  • First Factory: The first English factory was set up on the banks of the river Hugli in 1651.
  • Zamindari Rights: By 1696, the Company began building a fort around its settlement and bribed Mughal officials into giving them zamindari rights over three villages, one of which was Kalikata (later Calcutta).
  • Duty-Free Trade: The Company persuaded Emperor Aurangzeb to issue a farman granting them the right to trade duty-free. However, Company officials often used this for their private trade without paying duties, causing enormous revenue loss to Bengal.
  • Conflict with Nawabs: After Aurangzeb’s death, the Bengal Nawabs (Murshid Quli Khan, Alivardi Khan, and Sirajuddaulah) refused to grant the Company concessions, demanded large tributes, and forbade them from extending fortifications.
  • The Battle of Plassey (1757): This was the first major victory of the Company in India. Robert Clive led the Company’s army against Sirajuddaulah. The Nawab lost primarily because one of his commanders, Mir Jafar, never fought the battle after being promised the throne by the British.
  • The Puppet Rulers: After Plassey, the British installed “puppet” Nawabs like Mir Jafar and later Mir Qasim to ensure easy trade concessions.
  • The Battle of Buxar (1764): When Mir Qasim complained about Company overreach, he was defeated at Buxar, and the Company eventually decided to “become Nawabs ourselves”.
  • Diwani Rights: In 1765, the Mughal emperor appointed the Company as the Diwan (chief financial administrator) of Bengal, allowing them to use vast land revenues to fund their trade and maintain their army.
  • The Resident System: Instead of direct military attacks, the Company often used political and commercial agents called “Residents” to interfere in the internal affairs of Indian states.
  • Subsidiary Alliance: Under Richard Wellesley, states were forced into this alliance. They had to pay for a “subsidiary force” maintained by the Company for their “protection.” If they failed to pay, part of their territory was taken away.
  • Tipu Sultan (The Tiger of Mysore): Mysore grew powerful under Haidar Ali and Tipu Sultan. Tipu stopped the export of sandalwood and spices through his ports, leading to four wars. He was finally killed defending his capital, Seringapatam, in 1799.
  • War with the Marathas: The British weakened the Marathas through a series of wars. The Third Anglo-Maratha War (1817-19) crushed Maratha power and abolished the position of the Peshwa.
  • The Doctrine of Lapse: Introduced by Lord Dalhousie, this policy stated that if an Indian ruler died without a male heir, his kingdom would “lapse”—meaning it would become part of Company territory. Satara, Sambalpur, Udaipur, and finally Awadh were annexed this way.
  • Presidencies: The British divided their territories into administrative units called Presidencies: Bengal, Madras, and Bombay, each ruled by a Governor.
  • Justice System: From 1772, a new system established two courts in each district: a criminal court (faujdari adalat) and a civil court (diwani adalat).
  • The Collector: The principal figure in an Indian district was the Collector, whose main job was to collect revenue and maintain law and order.
  • The Company Army: The British recruited Indian peasants and trained them as professional soldiers (sepoy or sipahi). As warfare technology changed, the importance of cavalry declined in favor of infantry armed with muskets and matchlocks.
NCERT History   •   Class-8
Chapter – 2

From Trade to Territory

Power Vacuum
Post-1707: After Aurangzeb, regional Nawabs and Zamindars established independent kingdoms.
Mercantilism: The Company model involved buying Indian goods cheap and selling in Europe for high profit.
Early Friction
Duty-Free Trade: Abuse of royal farmans led to massive revenue loss for Bengal Nawabs.
Fortification: Trade rivalries led the Company to arm their posts, sparking conflict with local rulers.
Expansion & Conquest
Battle of Plassey (1757): Major turning point; Sirajuddaulah defeated after the betrayal of Mir Jafar.
Battle of Buxar (1764): Led to the Diwani Rights in 1765, allowing the Company to collect Bengal’s vast land revenues.
Subsidiary Alliance: States were forced to pay for British forces; failure meant surrendering territory to the Company.
Tipu Sultan: The “Tiger of Mysore” fought four wars to stop British trade monopoly before falling in 1799.
Doctrine of Lapse: Dalhousie’s policy to annex states (like Awadh) if a ruler died without a male heir.

Farman

A royal edict or order, such as the one granting duty-free trade rights.

Residents

Political agents in Indian courts who interfered in internal state affairs.

Sipahi

Indian peasants recruited and trained as professional infantry (Sepoys).

Company to State
The East India Company’s journey was a unique historical shift where a trading body used military technology and political manipulation to become the sovereign master of a sub-continent.
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Class-8 History Chapter-2 PDF

Complete Study Notes: From Trade to Territory

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The Vice-President of India holds the second-highest constitutional office in the country. This office is modeled on the lines of the American Vice-President, serving as a “standby” for the President.

  • Article 63: There shall be a Vice-President of India.
  • Dual Role: The Vice-President acts in a dual capacity:
    1. As the Ex-officio Chairman of the Rajya Sabha.
    2. As the President when a vacancy occurs in the office of the President.

Like the President, the Vice-President is elected indirectly by an Electoral College. However, the composition is different.

  • It consists of all members of Parliament (both elected and nominated).
  • Key Difference from President’s Election:
    1. It includes Nominated members of Parliament.
    2. It does not include members of State Legislative Assemblies (MLAs).
  • Method: Proportional Representation by means of a Single Transferable Vote.
  • Voting: Secret Ballot.

To be eligible for the post of Vice-President, a person must:

  1. Be a citizen of India.
  2. Have completed 35 years of age.
  3. Be qualified for election as a member of the Rajya Sabha (Note: For President, it is Lok Sabha).
  4. Not hold any Office of Profit.
  • Term: 5 years from the date of entering office.
  • Resignation: By writing to the President.
  • Removal: Unlike the President, there is no formal “impeachment.”
    • A resolution for removal can be started only in the Rajya Sabha.
    • It must be passed by the Rajya Sabha by an Effective Majority (majority of all the then members) and agreed to by the Lok Sabha by a Simple Majority.
    • A 14-day notice must be given before moving the resolution.

The Vice-President has two main functional roles:

  • His powers and functions here are similar to those of the Speaker of the Lok Sabha.
  • He presides over the proceedings of the House.
  • He ensures the maintenance of order and decorum.
  • Casting Vote: He does not vote in the first instance, but can cast a vote in case of a tie.
  • He acts as President in case of a vacancy due to death, resignation, or removal.
  • While acting as President, he does not perform the duties of the Chairman of Rajya Sabha (the Deputy Chairman takes over).
  • He enjoys all powers, immunities, and emoluments of the President during this period.
ArticleKeywordCore Mandate
63OfficeExistence of Vice-President post.
64ChairmanEx-officio Chairman of Rajya Sabha.
65StandbyActs as President during vacancies.
66ElectionElectoral College (All MPs).
67Tenure5-Year Term and Removal process.
69OathAdministered by the President.
71DisputesAll election disputes decided by Supreme Court.
Constitutional Office • Art. 63-71
The Vice-President of India

Election, Roles & Removal

Eligibility
Must be a citizen, 35+ years of age, and qualified for Rajya Sabha election.
Dual Role
Acts as Ex-officio Chairman of Rajya Sabha and as “Standby” Acting President.
Election (Art. 66)
Electoral College: Consists of all members of Parliament (both Elected and Nominated). Unlike the President, State MLAs are not included.
Method: Proportional Representation by Single Transferable Vote via Secret Ballot.
Removal Process (Art. 67)
Resolution must originate in Rajya Sabha (Effective Majority) and be agreed upon by Lok Sabha (Simple Majority) after a 14-day notice.

Chairman Powers

Presides over proceedings, maintains decorum, and exercises a Casting Vote in case of ties.

Acting President

During vacancies, enjoys all Presidential powers and emoluments; vacates Chairman duties during this term.

Election Disputes

Under Art. 71, all disputes regarding VP elections are inquired and decided by the Supreme Court.

The Legal
Shortcut
The Vice-Presidential tenure is 5 years (Art. 67). While in office, they cannot hold any Office of Profit. Upon assuming charge, the oath (Art. 69) is administered specifically by the President or a person appointed by them.

Here is a detailed analysis of the The Hindu Editorials for January 28, 2026, categorized by syllabus relevance for UPSC preparation.

Syllabus: GS Paper 3 (Indian Economy; External Sector; Exchange Rate Management) and GS Paper 2 (International Relations).

Context: Former RBI Governor C. Rangarajan analyzes the recent 6% slide in the rupee’s value since April 2025, attributing it primarily to diplomatic rather than purely economic factors.

Key Points:

  • Capital Outflows as the “Villain”: Unlike past crises driven by trade deficits, the current decline is fueled by a net capital outflow of $3,900 million (April-Dec 2025) compared to an inflow of $10,615 million in the previous year.
  • U.S. Tariff Pressures: The “hostile attitude” of the Trump administration—imposing a 50% duty on Indian exports and threatening another 25% for trading with Iran—is generating market fear.
  • Devaluation is Not the Remedy: India’s rising export import-content means devaluation provides less stimulus than before, while it simultaneously fuels inflation by raising the cost of essential crude oil imports.
  • Shift to Diplomacy: Since there is no clear economic explanation like Federal Reserve interest rate hikes this time, the solution has shifted from the economic arena to the diplomatic platform.

UPSC Relevance: Vital for “Monetary Policy,” “Exchange Rate Volatility,” and “India-U.S. Economic Diplomacy.”

Detailed Analysis:

  • Redefining Volatility: The editorial calls for the RBI to clarify that “reducing volatility” includes moderating a steady fall, not just managing fluctuations around a level.
  • Geopolitical Weaponization: As tariffs are being weaponized for geopolitical reasons, trade negotiators must reach an understanding with the U.S. to stabilize capital flows.
  • Impact on Markets: Continued capital outflows from stock sales have a direct negative impact on the domestic stock market, creating a cycle that further weakens the currency.

Syllabus: GS Paper 2 (Bilateral and global groupings involving India; International Relations) and GS Paper 3 (Science & Technology).

Context: The conclusion of the India-EU Free Trade Agreement (FTA) and the launch of the “Comprehensive Strategic Agenda for 2030”.

Key Points:

  • Beyond Supply Chains: The pact moves into operationalizing joint R&D in “heterogeneous integration” (advanced semiconductor packaging) and chip design.
  • AI Safety Alignment: It formally links the European AI Office with India’s National AI Mission to develop safe, human-centric AI models using India’s vast multilingual datasets.
  • Regulatory Exclaves: The creation of “Blue Valleys”—regulatory zones that align Indian standards with European ones—will allow Indian components to flow into EU supply chains without new certifications.
  • Financial Integration: India will explore association with “Horizon Europe,” potentially giving Indian chip startups access to the EU’s €95.5-billion research budget.

UPSC Relevance: Essential for “Critical Technologies,” “India-EU Strategic Ties,” and “Global AI Governance.”

Detailed Analysis:

  • Heterogeneous Integration: Recognizing that India is years away from 2-3 nm chip fabrication, the deal pivots to stacking logic, memory, and sensors, which is critical for AI accelerators.
  • The “Brussels Effect”: By adopting EU safety benchmarks (which penalize algorithmic bias), Indian developers may unknowingly export European digital protections into the domestic market.
  • Designer vs. Physical Capital: The deal unifies India’s design talent (20% of the world’s share) with Europe’s physical research infrastructure (IMEC/Fraunhofer) to reduce reliance on U.S. intellectual property.

Syllabus: GS Paper 3 (Indian Economy; Industrial Policy; Manufacturing sector).

Context: An analysis of why capital support alone is failing to build a robust domestic ecosystem for battery cell and solar manufacturing.

Key Points:

  • Upstream Bottleneck: While downstream assembly is robust (56% target met), critical upstream segments like polysilicon and wafer manufacturing have only reached 14% and 10% of their targets.
  • Sluggish Battery Progress: Only 2.8% (1.4 GWh) of the targeted 50 GWh battery production capacity has been commissioned despite an ₹18,000 crore outlay.
  • Visa Issues: A major hurdle is the government’s reluctance to issue visas to Chinese technical experts required to set up these highly specialized facilities.
  • Stringent Deadlines: Several companies now face steep fines for missing deadlines, highlighting a gap between policy ambition and ground reality.

UPSC Relevance: Significant for “Make in India,” “Energy Transition Strategy,” and “Challenges in High-Tech Manufacturing.”

Detailed Analysis:

  • Misplaced Expectations: The editorial argues that capital subsidies cannot substitute for decades of research investment and workforce training required for scale.
  • Relook at Criteria: It suggests the PLI scheme should prioritize “expertise and technical know-how” over the net worth of bidding companies to ensure successful execution.

Syllabus: GS Paper 3 (Indian Economy; Employment; Labour Reforms) and GS Paper 2 (Social Justice).

Context: The four Labour Codes came into force in November 2025, aiming to consolidate 29 central laws and simplify compliance.

Key Points:

  • Youth Unemployment Crisis: PLFS data shows youth unemployment at 10.2%, with a massive gender gap—only 28.8% of young women participate in the labor force compared to 63.5% of men.
  • Informality Trap: Nearly 90% of young workers are informally employed, and 60.5% of those in regular salaried jobs lack social security.
  • Contractual Insecurity: 66.1% of young regular workers have no written contract, making them more vulnerable to sudden job losses.
  • Statutory Floor Wage: The introduction of a national floor wage is expected to raise earnings for those in low-paid entry-level roles.

UPSC Relevance: Key for “Labour Law Reforms,” “Demographic Dividend,” and “Gig Economy Regulations.”

Detailed Analysis:

  • Fixed-Term Parity: The codes mandate parity in wages and benefits for fixed-term workers compared to permanent ones, which could stabilize youth employment if enforced.
  • Gig Worker Recognition: For the first time, gig and platform workers (projected to reach 2.35 crore by 2029-30) are recognized in law with provisions for social security boards.
  • Statistical Gaps: The piece highlights the urgent need for stronger data systems that specifically identify gig workers instead of grouping them under general self-employment.

Syllabus: GS Paper 2 (International Relations; Effect of policies of developed countries; West Asian and South American Geopolitics).

Context: A critique of U.S. President Trump’s “naked imperialism” in Venezuela, including the naval blockade and abduction of the former head of state.

Key Points:

  • Control Over Oil: The editorial argues the U.S. action is not about democracy but about securing exclusive control over Venezuela’s vast oil resources.
  • Neocolonial Logic: Washington aims to capture the existing state apparatus and redirect its functions, avoiding the costs of direct occupation seen in Iraq.
  • The “Donroe Doctrine”: Characterized as an extension of the Monroe Doctrine, this unilateralism threatens the foundations of the international rules-based order.
  • Extortion as Diplomacy: Washington creates economic pressure through sanctions and then offers to ease it only if Venezuela submits to American control.

UPSC Relevance: Important for “Global Sovereignty Issues,” “U.S. Foreign Policy Shifts,” and “Impact on Global South Security.”

Detailed Analysis:

  • Double Standards: The international community condemned Russia for violating Ukrainian sovereignty but remains “muted” on U.S. overreach in the Western Hemisphere.
  • Fragile Stability: By pressuring Acting President Delcy Rodriguez to surrender sovereignty, the U.S. risks the very regional instability it claims to prevent.
  • Threat to Global South: The lekh warns that if this precedent remains unchallenged, no nation in the Global South can be considered safe from external intervention.

Editorial Analysis

JANUARY 28, 2026
GS-2 IR / GS-3 TECH India-EU FTA: Tech 2030

Shift to Heterogeneous Integration in semiconductors. Indian startups gain potential access to the €95.5-billion Horizon Europe budget.

GS-3 INDUSTRY Manufacturing PLI Woes

Upstream wafer manufacturing at only 10% of Target. Capital support alone cannot bridge the decade-long R&D gap in battery cells.

GS-2 IR The Donroe Doctrine

U.S. naval blockade of Venezuela analyzed as Naked Imperialism. Focus on control over oil resources rather than democratic stability.

ECONOMY: Devaluation fuels inflation due to high import-content in India’s exports; diplomacy is the new remedy.
TECH DIPLOMACY: “Blue Valleys” regulatory zones will allow Indian components to enter EU supply chains seamlessly.
LABOUR: Mandating parity for fixed-term workers is essential to solve the informality trap in youth employment.
GLOBAL SOUTH: Sovereignty violations in the Western Hemisphere threaten the foundations of the rules-based order.
GS-4
Global Ethics
Realpolitik vs. Sovereignty: The weaponization of trade and naval blockades raises ethical questions about the Right to Self-Determination. A muted international response to interventionism risks delegitimizing universal ethical standards in global governance.

For today’s mapping session, we focus on India’s Major Soil Types and Agricultural Belts. These are core components for your IAS PCS Mission 2026 website, as they provide the spatial link between geography and the economy.

The Indian Council of Agricultural Research (ICAR) classifies Indian soils into 8 major groups. For mapping, focus on these top 4, which cover over 80% of the land.

Soil TypeGeographic DistributionMapping Highlight
Alluvial SoilNorthern Plains (Indus-Ganga-Brahmaputra) and coastal deltas.Most widespread (approx. 43%); divided into Khadar (new) and Bhangar (old).
Black SoilDeccan Trap (Maharashtra, Gujarat, MP, parts of Karnataka).Also called Regur or Black Cotton Soil; rich in iron and lime.
Red & YellowEastern and Southern Deccan Plateau (Odisha, Chhattisgarh, TN).Red color due to ferric oxide; yellow in hydrated form.
Laterite SoilSummits of Western & Eastern Ghats (Kerala, Karnataka, Odisha).Formed by intense leaching; acidic and coarse-grained.

Agricultural mapping identifies where primary food and cash crops are concentrated based on soil and climate.

  • Wheat Belt (North-West):
    • Major States: Punjab, Haryana, and Western Uttar Pradesh.
    • Soil Focus: Loamy Alluvial soil.
  • Rice Belt (East & South):
    • Major States: West Bengal (largest producer), Uttar Pradesh, Punjab, and Andhra Pradesh.
    • Soil Focus: Clayey Alluvial soil.
  • Cotton Belt (The Black Soil Region):
    • Major States: Maharashtra, Gujarat, and Telangana.
    • Soil Focus: Regur (Black) soil.
  • Sugar Belt:
    • North: Uttar Pradesh (largest area).
    • South: Maharashtra and Karnataka (higher yield due to maritime influence).
  • Tea: Concentrated in the hills of Assam (Brahmaputra Valley), Darjeeling (WB), and the Nilgiris (South).
  • Coffee: Almost entirely in the hills of Karnataka (Bababudan hills), Kerala, and Tamil Nadu.
  • Jute: The delta region of West Bengal (Hugli river belt) is the global leader.
Crop/SoilMapping HighlightKey Location
Cotton SoilDeccan TrapMaharashtra/Gujarat
Rice HubBengal DeltaWest Bengal
Coffee HillsBababudan HillsKarnataka
Granary of IndiaPunjab/HaryanaNW Plains

Mapping Brief

SOILS & AGRICULTURAL BELTS
SOIL PROFILES ICAR Classification

Alluvial (43%) covers northern plains. Black Soil (Regur) dominates the Deccan Trap, while Laterite is restricted to the Ghat summits.

PLANTATION MAP Tea, Coffee & Jute

Assam Valley leads in Tea; Bababudan Hills (KT) for Coffee; and the Hugli Delta for global Jute production.

MAJOR CROP BELTS
The North-West Granary

The Wheat belt thrives on Loamy Alluvial soil across Punjab and Haryana. In contrast, the Rice belt dominates the Clayey Alluvial tracts of West Bengal and the coastal deltas.

CASH CROP DYNAMICS
Cotton & Sugarcane

Cotton is localized in the Black Cotton Soil of Maharashtra and Gujarat. Sugarcane shows a dual-hub: the high-acreage UP Plains and the high-yield Maritime South.

Red & Yellow Soils

Distributed across the eastern Deccan (Odisha/Chhattisgarh), where the Ferric Oxide content gives the landscape its distinctive red hue.

COTTON HUB Mark the Deccan Trap (MH/GJ).
RICE HUB Trace the Bengal Delta (West Bengal).
COFFEE HILLS Locate Bababudan Hills (Karnataka).
Atlas Strategy
Spatial foundation: Understanding the Khadar-Bhangar distinction in Alluvial soil is vital for micro-mapping fertility. Note that intense leaching in high-rainfall zones creates the acidic, coarse-grained Laterite soil.

History

Geography

Indian Polity

Indian Economy

Environment & Ecology

Science & Technology

Art & Culture

Static GK

Current Affairs

Quantitative Aptitude

Reasoning

General English

History

Geography

Indian Polity

Indian Economy

Environment & Ecology

Science & Technology

Art & Culture

Static GK

Current Affairs

Quantitative Aptitude

Reasoning

General English