2-5: European Commercial Enterprise in Pre-Colonial India | Om Prakash (1998) | Volume II: Indian states and the transition to colonialism | The New Cambridge History of India

European Commercial Enterprise in Pre-Colonial India | Om Prakash (1998)

Overview

Released in 1998, Om Prakash's European Commercial Enterprise in Pre-Colonial India represents a significant contribution to The New Cambridge History of India series. This work provides a thorough examination of European trading entities in India prior to the onset of extensive British colonialism. It contests oversimplified perspectives that these entities merely functioned as political invaders, illustrating instead their role as economic participants within India’s pre-existing trade networks.
Om Prakash adeptly explores the interactions of European powers—mainly the Portuguese, Dutch, English, and French—with India's dynamic and multifaceted economy between the 16th century and the mid-18th century. The text synthesizes elements of economic history, political discourse, and maritime studies to present a well-rounded and extensively researched account.

Historical Scope

The book spans a significant timeframe from approximately 1500 to 1757, encompassing:

• The arrival of the Portuguese in India starting in 1498
• The expansion of the Dutch and English East India Companies during the 17th century
• The role of the French Compagnie des Indes and various other minor stakeholders
• The transition from economic activities to political control by the mid-18th century

Key Themes and Highlights

Entry of European Powers into Indian Trade

Om Prakash outlines how:

• Vasco da Gama’s arrival initiated a new chapter in India’s global trade dynamics
• The Portuguese Estado da Índia initially monopolized early coastal commerce via fortified locations such as Goa
• The Dutch and English companies grew stronger over time due to better organization and maritime capabilities

Structure and Strategy of European Companies

The book meticulously investigates:

• How these companies received government charters bestowing exclusive trading rights
• Their internal structures, encompassing factories (trading outposts), governance, and financial frameworks
• Their reliance on Indian merchants, bankers, and producers for achieving their objectives

Indian Markets and Indigenous Agency

In contrast to Eurocentric narratives, Om Prakash underscores:

• The robustness and adaptability of Indian markets
• The influence of local trading networks, such as the Banyans and Chettis, on trade results
• The necessity for Europeans to adjust to Indian trading customs, often finding themselves as subordinate partners rather than rulers

Competition, Conflict, and Maritime Rivalry

The book analyzes:

• The rivalries between the Anglo-Dutch and Anglo-French factions in India and Southeast Asia
• Naval confrontations and the contest for coastal supremacy
• The strategic deployment of fortifications, naval strength, and negotiation to dominate trade routes

Transition from Trade to Territorial Power

Ultimately, the book details the gradual movement from economic pursuits to political aspirations:

• Particularly in the aftermath of the Battle of Plassey in 1757
• The East India Company began to exercise political control, signaling the onset of formal British colonial governance
• Om Prakash depicts this as a gradual, intricate progression rather than a sudden takeover

About the Author: Om Prakash

Om Prakash stands as one of India's most esteemed economic historians.

• He is a former professor at the Delhi School of Economics
• His expertise encompasses maritime trade, Indian Ocean commerce, and the early modern Indian economy
• He authored Bullion for Goods: European and Indian Merchants in the Indian Ocean Trade (1500–1800)

His scholarly writing merges thorough archival research with a digestible narrative style, rendering this book essential for both academics and lay readers.

Why This Book Is Important

• Provides a non-colonial perspective on the European involvement in India.
• Illustrates India as an economic force, rather than a mere colony awaiting domination.
• Assists readers in grasping pre-colonial globalization and the economic connections between India and Europe.
• Crucial for comprehending the roots of colonial dominance driven by commercial interests.