NCERT Class 8 Social Science Chapter 2 From Trade to Territory: The Company Establishes Power

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NCERT Class 8 Social Science Chapter 2 From Trade to Territory: The Company Establishes Power

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Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. CBSE Class 8 Social Science Solutions are part of All Subject Solutions. Here we have given NCERT Class 8 Social Science Chapter 2 From Trade to Territory: The Company Establishes Power, NCERT Class 8 Social Science Textbook of Our Pasts – III: History, Social and Political Life – III: Civics, Resources, and Development: Geography. for All Chapters, You can practice these here.

From Trade to Territory: The Company Establishes Power

Chapter: 2




You are living in England in the late eighteenth or early nineteenth century. How would you have reacted to the stories of British conquests? Remember that you would have read about the immense fortunes that many of the officials were making.

Ans. Students Do Yourself.


Q.1. Match the following:

(i) Diwani(a) Tipu Sultan
(ii) “Tiger of Mysore”(b) Right to collect land revenue
(iii) Faujdari adalat(c) Sepoy
(iv) Rani Chinnamma(d) Criminal court
(v) Sipahi(e) Led an anti- British movement in Kittur


(i) Diwani(b) Right to collect land revenue
(ii) “Tiger of Mysore”(a) Tipu Sultan
(iii) Faujdari adalat(d) Criminal court
(iv) Rani Chinnamma(e) Led an anti- British movement in Kitoor
(v) Sipahi(c) Sepoy

Q.2. Fill in the blanks:

(a) The British conquest of Bengal began with the Battle of ___________.

Ans. Plassey.

(b) Haidar Ali and Tipu Sultan were the rulers of ___________.

Ans. Mysore.

(c) Dalhousie implemented the Doctrine of ____________.

Ans. Lapse.

(d) Maratha kingdoms were located mainly in the ____________ part of India. 

Ans. North-west.

Q.3. State whether true or false:

(a) The Mughal empire became stronger in the eighteenth century.

Ans. False.

(b) The English East India Company was the only European Company that traded with India.

Ans. False.

(c) Maharaja Ranjit Singh was the ruler of Punjab.

Ans. True.

(d) The British did not introduce administrative changes in the territories they conquered. 

Ans. False.


Q.4. What attracted European trading companies to India?

Ans. There was a great demand of Indian goods in European countries such as cotton and silk. Pepper, cloves, cardamom and cinnamon too were in great demand. These things could be purchased at low prices in India and could be sold at very high prices. Hence European trading companies came to India to gain profits.

Q.5. What were the areas of conflict between the nawabs of Bengal and the East India Company?

Ans. The following were the areas of conflict between the nawabs of Bengal and the East India Company:

(a) Misuse of trade concession: Farrukh Siyar, the Mughal Emperor had granted the British Company a farman to carry on duty-free trade in Bengal, Bihar and Orissa in 1717 A.D. The English traders however misused the privilege and evaded the payment of taxes.

(b) In the first half of the eighteenth century, Nawab of Bengal laid two conditions which the Company had to obey or loose its right to trade in Bengal.

(c) The officials of the Company engaged in private trade shall pay custom duty or privilege of not paying the duty will be with- drawn altogether.

(d) The Company shall not extend its fortification.

Q.6. How did the assumption of Diwani benefit the East India Company?

Ans. Diwani allowed the Company to use the vast revenue resources of Bengal. Formerly, it had to import gold and silver from Britain in large quantities to buy most of the goods in India. At that time, Britain had no goods to sell in India which could fetch its finances to buy Indian goods. But the Diwani of Bengal, Bihar and Orissa not only helped it to meet administrative expenses but also enabled it to buy Indian goods to be exported to Britain. 

Q.7. Explain the system of “subsidiary alliance”.

Ans. The following were the features of system of Subsidiary Alliance given by Lord Wellesley:

(a) The Indian rulers accepting the Subsidiary Alliance would neither enter into alliance with any other power, nor would they declare war against any power without the permission of English.

(b) The Indian rulers accepting this system were to agree to the stationing of the British contingent force for whose maintenance they would pay a subsidy.

(c) He would allow a British resident to stay in his state.

(d) He would not employ any Europeans other than the English and if there was already any, would dismiss them.

(e) In return for acknowledging the British Company as the paramount power, the Company undertook to protect him from the external dangers and internal disorders.

Q.8. In what way was the administration of the Company different from that of Indian rulers?

Ans. (i) The British territories were broadly divided into administrative units called Presidencies. There were three Presidencies-Bengal, Madras and Bombay. The supreme head of the administration was the Governor General.

(ii) From 1773, each district was to have two courts-a criminal court (faujdari adalat) and a civil court (diwani adalat). Muslims and Hindu Pandits interpreted Indian laws for the European district collectors who presided over civil courts. The criminal courts were still under a qazi and mufti but under the supervision of the collectors.

(iii) In 1775, eleven Pandits were asked to compile a digest of Hindu laws. 

(iv) By 1778, a code of Muslim laws was also compiled for the benefit of European judges.

(v) Under the Regulating Act of 1773, a new Supreme Court was established. A court of appeal-the Sadar Nizamat Adalat was also set- up at Calcutta.

Q.9. Describe the changes that occurred in the composition of the Company’s army.

Ans. The following were the changes that occurred in the composition of the Company’s army:

(i) The English Company though recruited Indian soldiers in the army but they were never allowed to acquire any higher post.

(ii) The cavalry dominated the army and the Mughal state did not feel the need to have a large professionally trained infantry. The English Company’s soldiers were however armed with muskets and match locks.

(iii) The infantry regiments became more important under the British Company.

(iv) The soldiers of the Company were subjected to European style of training.


Q.10. After the British conquest of Bengal, Calcutta grew from a small village to a big city. Find out about the culture, architecture and the life of Europeans and Indians of the city during the colonial period.

Ans. The main features of Calcutta city during the colonial period were as follows:

(i) Calcutta from 1750 to 1805: The work of planning of Calcutta was carried by different Governor- Generals. After the Battle of Plassey Civil Line areas were developed.

(ii) Planning of Calcutta after Lord Wellesley: After Wellesley’s departure, the work of town planning was carried on by Lottery Committee (1817) with the help of the government.

(iii) Role of Health and Town Planning of Calcutta: The threat of epidemics gave a further impetus to town planning.

(iv) Change in Attitude of Government for Planning: Densely built up areas were seen as insanitary since they obstructed direct sunlight and circulation of air.

Q.11. Collect pictures, stories, poems and information about any of the following the Rani of Jhansi, Mahadji, Sindhia, Haidar ali, Maharaja Ranjit Singh, Lord Dalhousie or any other contemporary ruler of your region.

Ans. Self attempt.



Q.1. Why could Delhi no longer function as an effective centre?

Ans. Delhi could no longer function as an effective centre because powerful regional kingdoms emerged in various parts of India.

Q.2. What was written in the charter from the Queen Elizabeth to the East India Company in 1600?

Ans. The charter from the Queen Elizabeth to the East India Company in 1600 granted Company the sole right to trade with the East.

Q.3. How did the Portuguese reach the western coast of India by the time the first English ships sailed down the west coast of Africa?

Ans. The Portugueses had reached the western coast of India because the royal charter could not prevent other European powers from entering the Eastern markets.

Q.4. When and where was the first English factory set-up?

Ans. The first English factory was set-up on the banks of river Hugli in 1651.

Q.5. What farman did the Company ask from the Mughal emperor Aurangzeb?

Ans. The Company persuaded the Mughal Emperor Aurangzeb to issue a farman granting the Company the right to trade duty free. 

Q.6. What three things Sirajuddaulah ask the Company to do?

Ans. Sirajuddaulah asked the Company to:

(a) Stop meddling in the political affairs of his dominion. 

(b) Stop fortification.

(c) Pay the revenues.

Q.7. What was the main reason for the defeat of the Nawab Sirajuddaulah?

Ans. The main reason for the defeat of the Nawab was that Mir Jafar, one of Sirajuddaulah’s commanders and Mir Jafar’s officers never fought the battle.

Q.8. Besides British East India company, which were the other trading companies that came to the Indian shores.

Ans. Portuguese, Dutch and the French.

Q.9. When and between whom were the following battles fought: 

(a) Battle of Plassey.

(b) Battle of Buxar.

(c) Third battle of Panipat. 

Ans. (a) Battle of Plassey: It was fought in 1757 between Siraj-ud-Daula the Nawab of Bengal and the English East India Company.

(b) Battle of Buxar: It was fought in 1764 between Mir Qasim, the Nawab of Bengal, Mughal emperor and the Nawab of Awadh, on one side and the English on the other.

(c) Third Battle of Panipat: It was fought in 1761 between the Marathas and Ahmad Shah Abdali (Afghan chief).


Q.1. Write a short note on trade wars.

Ans. Scramble for colonies led to many wars among the European nations in the 17th and 18th centuries. These were known as trade wars. The European nations involved in trade wars were Britain, France, Holland and Portugal. For example, Indian fine quality cotton was in great demand in European nations. Along with cotton, other items, i.e., pepper, cloves, cardamoms, etc., were also in high demand.

All the European trading companies were interested in the trade of these item to earn high profit. As a result the competition among them increased, prices went up, which considerably reduced their profit. The urge to establish monopoly in the market led to fierce battles between these companies.

Q.2. Discuss the result of Carnatic wars.

Ans. The Carnatic wars were fought on the Indian soil between two European rival powers-Britain and France. Their struggle in India continued for nearly 20 years.

The three Carnatic wars were fought between these two nations. As a result of these wars, the France was eliminated from the political scene of India. The dream of empire building in India remained here-after largely a dream for the French except a few isolated pockets.

Q.3. Describe any four consequences of Battle of Plassey.

Ans. Following were the consequences of the battle of Plassey: 

(i) The defeat of Nawab in this battle marked the beginning of the establishment of British power in India.

(ii) After this battle, the British became the real masters of Bengal with Nawab as its puppet. 

(iii) It was the beginning of the subsequent victory of the whole country by the British. 

(iv) After the battle, the Nawab of Bengal was deposed. It installed in a chain of reactions.

Q.4. What were the causes of the Portuguese monopoly over trade in India till 16th century?

Ans. Causes of the Portuguese monopoly over trade in India till 16th century were:

(i) They possessed superior ships. 

(ii) Disunity among the Indian rulers gave an opportunity to them to expand their trade.

(iii) They set up their trading centres and port on Malabar coast and successfully checked the Arab steamers and even the Mughal ships.

Q.5. How was the charter issued to the East India Company by Queen Elizabeth I in 1600 advantageous for the Company?

Ans. The charter issued by Queen Elizabeth I in 1600 was advantageous for the Company because:

(i) No other trading group in England could compete with the East India Company. 

(ii) With this charter the Company could venture across the oceans, looking for new lands from which it could buy goods at cheap price, and carry them back to Europe to sell at higher prices.

Q.6. What were the consequences of Anglo-Maratha Wars? 

Ans. The consequences of Anglo-Maratha wars were: 

(i) The office of the Peshwas was abolished. 

(ii) A descendant of Shivaji was put on the throne of Satara. 

(iii) Appa Sahib of Nagpur was deposed and a minor son of Raghuji Bhonsle II was put on his place.

(iv) In new political scenario the ascendancy of the British became absolute. 

(v) The Holkars, Malhar Rao II was forced to accept the Subsidiary Alliance.

Q.7. Discuss the terms of the treaty of Allahabad which was signed in 1765.

Ans. Allahabad treaty of 1765 was signed between Shuja-ud-daullah and Shah Alam with Lord Clive. 

Terms of the Treaty:

(i) As a result of this treaty the British secured the Diwani of Bengal, Bihar and Odisha (Orissa).

(ii) The Nawab of Awadh ceded Allahabad and Kara to the Mughal Empire who begun to reside at Allahabad under the protection of British troops.

(iii) The Company agreed to pay 26 lakh annually to the Mughal Emperor but soon after stopped making this payment.

(iv) The Company promised to help nawab in case of the fear of an invasion, for which the nawab had to pay.

Q.8. Why were the British furious with Tipu Sultan?

Ans. The British were furious with Tipu Sultan because of following reasons:

(i) In 1785, Tipu Sultan stopped the export of sandalwood, pepper and cardamom through the ports of his kingdom.

(ii) He also disallowed local merchants from trading with British East India Company. 

(iii) He established a close relationship with the French in India and modernized his army with their help.

(iv) The British saw him as ambitious, arrogant and dangerous and became furious.

Q.9. Who introduced Doctrine of Lapse? What did it state? Which states were annexed under it?

Ans. Lord Dalhousie introduced the Doctrine of Lapse. According to that, adopted sons could not be made the ruler. It means that right of an adopted son to succeed to the throne was denied.

Under the Doctrine of Lapse, Dalhousie annexed Satara, Jaitpur, Jhansi, Awadh, Udaipur and Sambalpur.

Q.10. Write a short note on Subsidiary Alliance. 

Ans. Subsidiary Alliance was introduced by Lord Wellesly. According to this alliance:

(a) Indian rulers were not allowed to have their independent armed forces.

(b) Indian rulers were to be protected by the company but had to pay for the “subsidiary forces” that the company was supposed to maintain for the purpose of this protection.

(c) If the Indian rulers failed to make the payment, then part of their territory was taken away as penalty.

(d) For example, Nawab of Awadh was forced to give over half of his territory to the company in 1801 as he failed to pay for the “subsidiary forces”. Hyderabad was also forced to cede territories on similar grounds.

Q. 11. How and when did the British East India company set foot in India? 

Ans. In 1600, the East India Company acquired a licence to trade, from Queen Elizabeth I, of England. The company got the sole right to trade with Eastern countries. No other company in England was given the right to trade.

Q.12. What was the result of the competition between the trading companies from different European countries?

Ans. Competition between the trading companies from different European countries led to the following consequences-

(a) It resulted in fierce clashes between the trading companies and the sinking of each others ships.

(b) Different trading companies blocked routes and prevented rival ships from moving with supplies of goods.

Q.13. What were the reasons for Battle of Plassey or Why did the conflict between Siraj-ud-Daula and English intensify? 

Ans. The conflict between Siraj-ud- Daula and the English intensified due to a number of factors:

(a) British interference in the political affairs of the nawab. Siraj-ud-Daula wanted to maintain his independence. 

(b) Fortification of British settlements and non payment of revenues by company officials who carried on private hade. 

Q.14. Mention the consequences of Battle of Plassey. 

Ans. Battle of Plassey had the following consequences:

(a) Siraj-ud-Daula was defeated and Mir Jafar was made the Nawab of Bengal.

(b) The battle made the English supreme in Bengal and in a sense ensured their paramount power in India. 

Q.15. What was the reason for Battle of Buxar?

Ans. Mir Qasim was made the Nawab of Bengal by the Britishers. He was an able ruler and wanted to improve the condition of Bengal. He tried to check tax free trade by the British.

The Britishers got annoyed over this issue and a battle took place between the two.


Q.1. Write a detailed note on Anglo- Maratha wars.

Ans. Three wars were fought between the British and the Marathas-

(a) First Anglo Maratha war: The first war ended with the Treaty of Salbai. There was no decisive victory after this war.

(b) Second Anglo-Maratha war: The second war resulted in the British gaining Orissa, Agra and Delhi.

(c) Third Anglo Maratha war: The Third war broke the power of the Marathas. The company now had complete control over the territories south of Vindhyas. 

Q.2. Describe the consequences of the Fourth Anglo Mysore war.


What was the outcome of wars between Tipu Sultan and English East India Company?

Ans. The Fourth Anglo Mysore war had the following consequences:

(a) Tipu Sultan was killed defending his capital Seringapatam. 

(b) Mysore was placed under the former ruling dynasty of the Wodeyars.

(c) A subsidiary alliance was imposed on Mysore. 

Q.3. How did the annexation of the Indian states by the British affect the economic life of the common people?

Ans. The annexation of the Indian states by the British affected the economic life of the common people in the following ways:

(i) The annexation of the Indian states abolished the administrative machinery of each state.

(ii) The scope of the Indians to get high jobs in the administrative system was restricted. All this created unemployment in the higher class of society.

(iii) The learned people who worked for the state and received its patronage lost their jobs and the lands granted to them by the old rulers were taken away.

(iv) A number of soldiers of the armies of the Indian rulers were also thrown out of employment after their states had been conquered or had entered into a Subsidiary Alliance with the British.

(v) Many craftsmen who depended on state patronage were also ruined.


Q.1. Write a short note on Warren Hastings.

Ans. (a) He was one of the many important figures who played a significant role in the expansion of the company power.

(b) By his time, the company had acquired power not only in Bengal, but also in Bombay and Madras.

(c) He introduced several administrative reforms notably in the sphere of justice.

(d) Under him, a new system of justice was established. Each district was to have two courts – a civil court and a criminal court.

(e) His most well known measure was the Regulating Act of 1733 by which a new supreme court was established and a court of appeal was also set up at Calcutta.

Q.2. In your opinion, which of the wars fought by the British was turning point in the establishment of British an Empire in India?

Ans. These wars were: (i) Battle of Plassey.

(ii) Battle of Buxar. 

Battle of Buxar (1764) paved the way for the rise of British empire in India.


Q.1. Tipu Sultan transformed Mysore into a powerful Kingdom. Unlike many other Indian rulers, he opposed the British rule and fought against them. What value did Tipu stand for?

Ans. He stands for following values:

(i) Courage.

(ii) Determination.

(iii) Capable general.

(iv) Eagerness to move further.

(v) Adaptation of modern modes of warfare with help of the French.

Q.2. British establish a vast empire in India. Which qualities abled him to do so?

Ans. British established a vast empire in India due to following values: 

(i) Able British officers and superior Army and Navy. 

(ii) A unified command and disciplined attitude of British.

Q.3. Describe the policy of paramountcy. 

Ans. It was an aggressive policy of territorial expansion, introduced by Lord Hasting. This policy had the following features”:

(a) Under this policy, the company claimed that its authority was paramount or supreme, hence its s power was greater than that of Indian states.

(b) In order to protect its interest, it was justified in annexing or threatening to annex any Indian kingdom.

Q.4. Mention the features of a new system of justice that was established in India after 1722. 

Ans. (i) Firstly two courts a criminal court and a civil court were set up in each district. Maulvis and Hindu pandits interpreted Indian laws for the European district collectors who presided over civil courts.

(ii) Secondly, European district collectors decided cases with the help of Qazis and Muftis. But the Qazis and Muftis were subordinate to these collectors.

Q.5. What changes were introduced in the judiciary under the Regulating Act of 1733?

Ans. Under the Regulating Act of 1733, a new supreme court was established, while a court of appeal – the Sadar Nizamat Adalat was also set up at Calcutta.

Q.6. Write a short on ‘Residents’.

Ans. After the Battle of Buxar, the company appointed residents in Indian States. They were political or commercial agents. They had the following features: 

(a) Their job was to serve and further the interests of the company.

(b) Through the residents, the company officials began interfering in the internal affairs of Indian States.

(c) They tried to decide who was to be the successor to the throne and who was to be appointed in administrative posts.


A. Multiple Choice Questions Tick (✔) the correct of option:

1. The British East India Company was established in:

(a) 1650 by a group of traders and businessmen.

(b) 1600 by a group of traders and businessmen.

(c) 1638 by a group of traders and businessmen.

(d) None of the above.

Ans. (b) 1600 by a group of traders and businessmen.

2. In the beginning of its trade in India East India company’s main centre of trade was:

(a) Varanasi.

(b) Meerut.

(c) Surat.

(d) Bombay.

Ans. (c) Surat.

3. How did mercantile trading companies make profit?

(a) by buying cheap and selling dear.

(b) by buying dear and selling cheap.

(c) by eliminating competition.

(d) by selling more goods.

Ans. (a) by buying cheap and selling dear.

4. Who discovered the sea route to India in 1498?

(a) Pedro Escobra.

(b) William Simpson. 

(c) Vasco Da Gama.

(d) Diago Cao.

Ans. (c) Vasco Da Gama.

5. What were the East India Company’s traders known as?

(a) Sellers.

(b) Merchants.

(c) Factors.

(d) Manufacturers.

Ans. (c) Factors.

6. What ‘farman’ was issued by emperor Aurangzeb?

(a) granting the Company the right to trade without external interference.

(b) granting the Company the right to trade duty free.

(c) granting the Company the right to have exclusive right over concessions.

(d) granting the Company the right to carry on private trade.

Ans. (c) granting the Company the right to have exclusive right over concessions.

7. Which ruler of England gave permission to the East India Company to establish trade relation with the East?

(a) Henry- II

(b) Queen Elizabeth- I

(c) Queen Elizabeth- II

(d) Both ‘(a)’ and ‘(c)’

Ans. (b) Queen Elizabeth- I

8. Arrange the following states in order of which they were annexed by British under Doctrine of Lapse?

(a) Satara, Nagpur, Sambalpur, Jhansi.

(b) Satara, Jaipur, Nagpur, Jhansi.

(c) Satara, Sambalpur, Nagpur, LJhansi.

(d) Satara, Jhansi, Nagpur, Sambalpur.

Ans. (c) Satara, Sambalpur, Nagpur, LJhansi.

9. Which of the following was the first victim of Lord Dalhousie’s Doctrine of Lapse?

(a) Jhansi.

(b) Nagpur.

(c) Satana.

(d) Jodhpur.

Ans. (c) Satana.

10. Which of the following was not involved in the conspiracy against Siraj-ud-daullah?

(a) Mir Jafar.

(b) Ami Chand.

(c) Mir Madan. 

(d) Manik Chand.

Ans. (c) Mir Madan. 

B. Give the exact date of the following events:

1. First Mysore War.

Ans. 1767.

2. Treaty of Seringapatam.

Ans. 1792.

3. Third Maratha War.

Ans. 1817.

4. Battle of Buxar.

Ans. 1764.

5. Battle of Plassey.

Ans. 1757.

6. Ist Anglo-Maratha War.

Ans. 1772-82.

7. Second Carnatic War.

Ans. 1747-55.

C. Solve the given puzzle with the help of the clue. 

CLUES: Down (↓)

1. His main job was to collect revenues and taxes and maintain law and order in his district.

2. The title given to rulers of Hyderabad.

3. Principal Minister of Marathas, the main military and administrative head.

4. An early type of gun in which the powder was ignited by a match. 

5. A judge.

Across (→):

6. Sanskrit texts prescribing social rules and codes of behaviour, composed from 500 BCE onwards.

7. Trained soldiers on horseback. 

8. Political units among the Sikhs, each loyal to its own political leader.

9. A heavy gun used by infantry soldiers.


E. Extract Based Questions:

At his hearing in front of a Committee in Parliament, Clive declared that he had shown admirable restraint after the Battle of Plassey. 

This is what he said:

• Consider the situation in which the victory at Plassey had placed me! A great prince was dependent on my pleasure; an opulent city lay at my mercy; its richest bankers bid against each other for my smiles; I walked through vaults which were thrown open to me either hand with gold and jewels! Mr. Chairman, at this moment I stand astonished at my moderation.

Read the source given above and answer the following questions:

Q.1. What do you know about Robert Clive?

Ans. He was the Company official, who was sent to Bengal against the army of Siraj-ud-daulah in the Battle of Plassey. In 1764, he was appointed as the Governor of Bengal.

Q.2. Why, when and by whom he was cross-examined?

Ans. He was cross examined by the British parliament in 1772 for amassing a large amount of wealth and for corruption. 

Q.3. Why was Battle of Plassey important for Britishers?

Ans. Because it was their first major Victory on Indian soil.


Q.1. Look at the picture given below and answer the questions that follows:

1. Identify and name this personality. 

Ans. Tipu Sultan.

2. By what nick name he was famous?

Ans. Tiger of Mysore.

3. Name the territory ruled by him. 

Ans. Mysore.

4. When and how many Anglo- Mysore wars were fought?

Ans. Anglo- Mysore wars were fought between English and the rulers of Mysore. These were fought in 1767-69, 1780-84,1790-92 and 1799.

Q.2. Look at the following picture and answer the questions that follow:

1. Who possessed the mechanical toy in the picture?

Ans. Tipu Sultan.

2. What happened when the handle of the toy was turned?

Ans. When the handle of the toy was turned, the toy tiger roared and the soldier shrieked.

3. Where is the toy tiger now kept?

Ans. The toy tiger is now kept in the Victoria and Albert Museum in London.


Q. 1. On the map of world mark and locate the sea route to India in 18th century.

Ans. Routes to India in the 18th Century.

Q. 2. On the maps of India mark and locate the Expansion of British Empire in 1857:

Ans. Expansion of British Empire in 1857.

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