Agency Houses in British India

From Wikipedia, the free encyclopedia
Not to be confused with Agencies of British India.

Agency Houses in British India, were trading companies that arose in 17th and 18th century India during the Company rule in India.[1][2][3]

History[]

Background[]

In the 17th and 18th century, most of Eastern India came under the rule of the East India Company. India, then, was a major producer of spices and dyes, primarily Indigo. The trade of Indigo was a major business. The agency houses were initially formed to trade in commodities, primarily Indigo. The agency houses were also involved in all the financial dealings that arose from the export of these commodities to Europe.[1][2][3]

Business[]

Before the advent of joint-stock banking companies in India, the role of banks was played by agency houses. The agency houses performed various quasi-banking functions which included but were not limited to:[1][2][3]

  • Accepting deposits (agency houses accepted deposits only from British nationals and other Europeans)
  • Financing trade
  • Lending of money (primarily to the Government)

Downfall[]

In the 19th century, synthetic Indigo had been invented by Adolf von Baeyer at the German company BASF. This gradually reduced the demand for natural Indigo sourced from India. As a result, the agency houses of British India gradually faded away and were replaced by new conglomerates and trading companies.[1]

Legacy[]

The agency houses played a major role in shaping the economy of colonial India.[4]

Several early banks in India, such as the Bank of Hindostan, were founded by these Agency Houses.[4]

They also invented the Tinkathia System, which was a major point of contention during the Indian independence movement.[1]

List of notable Agency Houses[]

The Agency Houses of British India include:[4]

See also[]

References[]

  1. ^ a b c d e "India's Indigo Crash". Jun 29, 2020.
  2. ^ a b c d Roy, Tirthankar (2014). "Trading Firms in Colonial India". Business History Review. 88 (1): 9–42. doi:10.1017/S0007680513001402. ISSN 0007-6805.
  3. ^ a b c "History of Banking" (PDF). Ikouniv.ac.in. Retrieved May 29, 2021.{{cite web}}: CS1 maint: url-status (link)
  4. ^ a b c d "Indian banking's chequered history". www.gatewayhouse.in. Retrieved May 29, 2021.{{cite web}}: CS1 maint: url-status (link)

External Links[]

Retrieved from ""