The first English factory was set up in India, in the year 1951, on the banks of the river Hugli in West Bengal.
This was considered the base from which the traders of the company, known as “factors” operated.
The factory included a warehouse that stored the goods for export and offices where the officials sat.
The then Governor of Bengal, Siraj-ud-Daulah allowed the East India Company to carry out trading activities. The end of his reign initiated the rule of the East India Company in Bengal.
After the expansion of trade, the company prompted the traders to settle near the factory.
They began building the fort around the settlement by 1696 and bribed the Mughal officials to give Zamindari rights over three villages. Kalikata, which later became Kolkata, was one of the villages.
The Mughal ruler, Aurangzeb, was persuaded by the company to issue a “Farman”, right to trade, duty-free. The company was also given the Dastaks or passes for the transportation of goods.
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