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NCERT Solutions for Class 8 History Chapter 2 From Trade to Territory

NCERT Solutions for Class 8 History Chapter 2 From Trade to Territory with clear answers on the East India Company’s rise to power.
authorImageNivedita Dar8 Jan, 2026
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NCERT Solutions for Class 8 History Chapter 2 From Trade to Territory: The Company Establishes Power - The class 8 history chapter 2 question answer guide helps students learn how the British East India Company, which started out as a tiny trade company, became a powerful political force in India. This chapter talks about how the transition from trade to land conquest changed the way the Indian subcontinent was run. It talks about important wars like Plassey and Buxar that had a big impact on the way the Indian subcontinent was run.

NCERT Solutions for Class 8 History Chapter 2 

NCERT Solutions for Class 8 History Chapter 2 From Trade to Territory: The Company Establishes Power help students understand how the British East India Company expanded its control in India. The solutions explain key topics such as the arrival of European traders, battles like Plassey and Buxar, and the Company’s administrative policies in simple language. Each answer is written as per the latest NCERT syllabus, making it easy for students to revise and prepare for exams. These solutions help build strong concepts, improve answer-writing skills, and make history learning clear and interesting for Class 8 students.

Class 8 History Chapter 2 From Trade to Territory Questions and Answers

1. Match the following:

Diwani Tipu Sultan
“Tiger of Mysore” Right to collect land revenue
Faujdari Adalat Sepoy
Rani Channamma Criminal Court
Sipahi Led an anti-British movement in Kitoor

Answer.

Diwani Right to collect land revenue
“Tiger of Mysore” Tipu Sultan
Faujdari Adalat Criminal Court
Rani Channamma Led an anti-British movement in Kitoor
Sipahi Sepoy

2. Fill in the blanks:

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

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

(c) Dalhousie implemented the Doctrine of ___________.

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

Answer .

(a) The British conquest of Bengal began with the Battle of Plassey (b) Haidar Ali and Tipu Sultan were the rulers of Mysore . (c) Dalhousie implemented the Doctrine of Lapse (d) Maratha kingdoms were located mainly in the South-western part of India.

3. State whether true or false:

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

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

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

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

Answer .

(a) The Mughal empire became stronger in the eighteenth century – False (b) The English East India Company was the only European company that traded with India – False (c) Maharaja Ranjit Singh was the ruler of Punjab – True (d) The British did not introduce administrative changes in the territories they conquered – False

4. What attracted European trading companies to India?

Answer.

European trading companies were on the lookout for new lands where they could buy goods cheaply and sell them in Europe for higher prices. India caught their eye because it produced high-quality cotton and silk, which were in demand in Europe. Spices such as pepper, cloves, cardamom, and cinnamon were also highly sought after. These goods had a ready market in Europe. So, the allure of India's valuable goods attracted European trading companies to establish a presence in the region.

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

Answer.

The conflicts between the Bengal nawabs and the East India Company arose due to several reasons: a. Nawabs refused to grant concessions to the East India Company on numerous occasions. b. Nawabs demanded hefty tributes from the company. c. The company refused to pay taxes to the nawabs. d. Company officials wrote disrespectful letters to the nawabs, further escalating tensions.

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

Answer.

The acquisition of Diwani rights provided several benefits to the East India Company: a. It enabled the Company to utilize the extensive revenue sources of Bengal. b. The East India Company gained a monopoly on trade, further strengthening its economic power. c. The revenue generated from Bengal was utilized to export Indian goods overseas, contributing to the Company's profits and expanding its trade networks.

7. Explain the system of “subsidiary alliance”.

Answer.

The introduction of the subsidiary alliance system brought about several changes: a. The East India Company assumed the role of guardian over the territories it acquired through the alliance. b. An English resident, representing the East India Company, was stationed in the territory to monitor the actions of the ruler. c. Indian rulers were prohibited from allowing any other European companies to trade or enter their territory, consolidating the Company's monopoly. d. Indian rulers were obligated to finance the subsidiary armed forces of the East India Company. Failure to comply resulted in forfeiture of that part of the territory by the Company.

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

Answer.

The difference in the administration of the company and that of the Indian rulers is given below:

Company Administration Indian Rulers Administration
The company divided the territories into presidencies Indian rulers divided the territories into district, pargana, tehsil and parishad
Governor ruled the administrative units Zamindar or Peasants were responsible for their units
Governor-General was the head of the state King or Nawab was the head of the state
The introduction of several acts:
  • Regulating Act
  • Indian Council Acts
  • Montague-Chelmsford Reforms
Indian rulers brought no such acts but used to rule with their farmans.

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

Answer.

The army of the East India Company (EIC) was commonly referred to as the Sepoy Army. It mainly comprised Indian peasants who were trained by the EIC to become skilled and professional soldiers. A significant change in the EIC army occurred with the shift towards infantry dominance over cavalry, brought about by the introduction of muskets and matchlocks for their defense. The Company implemented a uniform military culture, wherein soldiers underwent European-style training through drills and exercises. This standardized approach helped create a disciplined and cohesive fighting force within the EIC army.

Mastering Class 8 History Chapter 2 Question Answer and Key Concepts

To understand the change from trade to territory, you need to look at how the East India Company used local politics to its advantage. The Company didn't just trade spices; they also started getting involved in the politics of Indian states. This part goes over the most important ideas and solutions you need to do well on your school tests and learn about modern Indian history.

Match the Following: Connecting Historical Events

To solve the class 8 history chapter 2 question answer exercises correctly, you must link the right terms with their definitions. Based on the NCERT curriculum, here are the correct matches:

  • Diwani: Right to collect land revenue.

  • Tiger of Mysore: Tipu Sultan.

  • Faujdari adalat: A criminal court.

  • Rani Channamma: Led an anti-British movement in Kitoor.

  • Sipahi: Sepoy.

True or False: Fact-Checking the Company’s Rise

True or false questions are a fantastic method to test your understanding of the finer points of British expansion.

  • After Aurangzeb died, the Mughal Empire got stronger.
    (False- It actually got weaker as regional governors claimed their independence.)

  • The only European corporation that did business with India was the English East India corporation.
    (False- The French, Dutch, and Portuguese were also strong competitors.)

  • The king of Punjab was Maharaja Ranjit Singh.
    (Yes).

  • The British don't make changes to the way things are run in the places they took over. (False- They set up a new system of justice and government).

Detailed Solutions: From Trade to Territory

What Attracted European Trading Companies to India?

European countries weren't merely investigating; they were also trying to make money. Europe has a huge market for India's high-quality cotton and silk. There was also a high demand for spices including cinnamon, cardamom, cloves, and pepper. Because all European enterprises wanted to buy the same things, there was a lot of competition. This led to naval wars and the building of stronger trading stations.

The Conflict Between Bengal Nawabs and the East India Company

The relationship between the Nawabs of Bengal and the Company soured for several reasons. The Nawabs, starting with Murshid Quli Khan, refused to grant the Company concessions. They demanded large tributes for the Company’s right to trade, denied them the right to mint coins, and stopped them from extending their fortifications. They claimed the Company was depriving the Bengal government of huge amounts of revenue.

The Battle of Plassey: A Turning Point

The Battle of Plassey is a vital part of the class 8 history chapter 2 question answer set because it was the first major British victory in India. When Alivardi Khan died, Sirajuddaulah became the Nawab. The British wanted a puppet ruler who would give them trade concessions. This tension led to the battle in 1757 where Robert Clive defeated the Nawab, largely because the forces led by Mir Jafar, one of Sirajuddaulah’s commanders, never fought the battle.

Administrative Changes and New Systems of Justice

The Doctrine of Lapse and Subsidiary Alliance

The Company employed a variety of political and military means to take over kingdoms.

  • Subsidiary Alliance: This meant that Indian rulers couldn't have their own armies. They had to pay for the "subsidiary forces" that the Company kept. They lost part of their land if they didn't pay.

  • The Doctrine of Lapse: Created by Lord Dalhousie made this rule: if an Indian king died without a male heir, his kingdom would "lapse," or become part of Company land. This is how Satara, Sambalpur, and Jhansi became part of India.

Setting up a New System of Justice

Warren Hastings played a vital part in reforming the administrative system. Each district was to have two courts: a criminal court (faujdari adalat) and a civil court (diwani adalat). Maulvis 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 a mufti but were supervised by the collectors.

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NCERT Solutions for Class 8 History Chapter 2 FAQs

What was the major reason for the Battle of Buxar?

Mir Qasim, the British had made the Nawab of Bengal, revolted against them, which led to the Battle of Buxar (1764). He wanted to get away from British rule, which led to a war in which the Company beat the united armies of Mir Qasim, Shuja-ud-Daulah, and Shah Alam II.

How did the East India Company start trading in Bengal?

In 1651, the first English factory was built on the banks of the Hugli River. The Company's dealers, called "factors," worked from this headquarters. They started building a fort around the hamlet in 1696, and later they paid off Mughal officials to give the Company zamindari powers over three villages.

Who were the "Residents" that the Company chose?

The Company put Residents in Indian states after the Battle of Buxar. They were political or business agents whose job it was to help the Company and serve its interests. The Company started to meddle in the internal affairs of Indian states through these Residents.

Why was the Diwani donation important?

The Mughal Emperor made the Company the Diwan of the provinces of Bengal in 1765. This let the Company use Bengal's huge income to buy cotton and silk fabrics from India, pay for its troops, and pay for erecting forts and offices.

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