NCERT Class 8 Social Science Our-Pasts-III: Chapter 2 — 2. From Trade to Territory The Company Establishes Power
This chapter, 'From Trade to Territory,' from NCERT's Class 8 Social Science book 'Our-Pasts-III,' details the transition of the British East India Company from a trading entity to a territorial power in India. It begins by discussing the decline of the Mughal Empire after Aurangzeb's death in 1707, leading to the rise of regional kingdoms. The chapter highlights the arrival of European trading companies, including the Portuguese, Dutch, and French, who competed fiercely for lucrative trade in Indian goods like cotton, silk, spices, and more. The narrative emphasizes how this intense competition, driven by mercantile principles of profit maximization through trade, eventually led to conflicts and the company's strategic acquisition of territories. It sets the stage for understanding the establishment of British dominance in India.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 8 |
| Subject | Social Science |
| Book | Our-Pasts-III |
| Chapter | Chapter 2 — 2. From Trade to Territory The Company Establishes Power |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 4 minutes |
| Word count | 609 |
Learning outcomes
- Understand the political situation in India after Aurangzeb's death.
- Identify the European trading companies that entered India.
- Explain the concept of mercantile trade and its impact.
- Analyze the reasons for competition among European companies.
- Trace the initial steps of the East India Company's expansion.
Vocabulary
| Word | Meaning |
|---|---|
| Subadars | Mughal governors |
| Zamindars | Landlords or big landowners |
| Mercantile | A business enterprise that makes profit primarily through trade, buying goods cheap and selling them at higher prices |
| Charter | An official document granting rights and privileges |
| Competition | The activity or condition of striving to gain or win something by defeating or holding off rivals |
| Territory | An area of land under the jurisdiction of a ruler or state |
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Practice questions
- Who was the last powerful Mughal ruler? Answer: Aurangzeb was the last powerful Mughal ruler.
- What happened after Aurangzeb's death in 1707? Answer: After Aurangzeb's death, many Mughal governors and big zamindars began asserting their authority and establishing regional kingdoms.
- When did the East India Company acquire its charter? Answer: The East India Company acquired its charter in 1600.
- Who was Vasco da Gama and what did he discover? Answer: Vasco da Gama was a Portuguese explorer who discovered the sea route to India in 1498.
- What were the main goods traded by European companies in India? Answer: The main goods traded included fine qualities of cotton and silk, pepper, cloves, cardamom, and cinnamon.
Frequently asked questions
Who was the last powerful Mughal ruler mentioned in the chapter?
Aurangzeb is mentioned as the last powerful Mughal ruler.
What was the East India Company's initial purpose in India?
The East India Company originally came as a small trading company to buy goods at cheap prices and sell them in Europe at higher prices.
When did the East India Company receive its charter?
The East India Company acquired its charter in 1600 from Queen Elizabeth I of England.
Which European explorers had already established a presence in India before the English became dominant?
The Portuguese had already established their presence in India, with their base in Goa. Vasco da Gama, a Portuguese explorer, had discovered the sea route to India in 1498.
What were the main Indian goods in demand in Europe?
Fine qualities of cotton and silk, pepper, cloves, cardamom, and cinnamon were in great demand in Europe.
Why did European trading companies engage in fierce battles?
They engaged in fierce battles to secure markets and eliminate rival competitors, as competition pushed up the prices of goods and reduced profits.
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NCERT Class 8 Social Science — Our-Pasts-III — Chapter 2 — 2. From Trade to Territory The Company Establishes Power. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.