British Colonialism in India

Choose the Correct Answer

Correct Answer : Option b

Explanation
Statement-I is correct. The English East India Company began as a trading organization with a monopoly on trade in India. However, over time, its monopoly was reduced:
● The Charter Act of 1813 abolished the Company's monopoly on trade in all goods except tea and trade with China.
● The Charter Act of 1833 ended the Company's monopoly completely, turning it into an administrative body rather than a commercial entity.

Statement-II is correct. As the Company acquired territorial control following events like the Battle of Plassey (1757) and the Battle of Buxar (1764), its role shifted from being purely a trading company to becoming the de facto ruler of large parts of India. This transformation was solidified through legislative measures, including the Pitt's India Act (1784) and the Charter Acts, which gradually curtailed the Company's commercial role and strengthened its administrative and political functions.
While both statements are true, Statement-II does not directly explain Statement-I. The loss of the Company's trade monopoly was primarily due to pressure from British merchants and the need to align with Britain's evolving free-trade policies, not because the British government was changing the Company's character into an administrative body.