←

IELTS Academic Reading Practice Test 248

Part 1 · Read the text and answer questions 1–13

You should spend about 20 minutes on Questions 1–13, which are based on Reading Passage 1 below.

The Company That Ruled Bengal

On the last day of 1600, Queen Elizabeth I granted a royal charter to a group of London merchants, giving them a monopoly of English trade with all lands to the east of the Cape of Good Hope. The new body was called the Governor and Company of Merchants of London trading into the East Indies, and its founders had one immediate aim: to win a share of the spice trade that had made Portugal and the Netherlands rich. English merchants had watched enviously as Dutch ships returned from the East Indies laden with pepper, nutmeg and cloves.

The first voyages were dangerous and expensive. Each fleet was financed separately by subscription, and investors accepted that a ship might never return. Early settlements, known as factories, were established not to manufacture goods but to store and trade them, and the Company's servants negotiated with local rulers for permission to build them. The English concentrated at first on the Indonesian archipelago, but the Dutch were far stronger there, and in 1623 a group of English merchants was executed at Amboyna, in what is now Indonesia, after accusations of conspiracy. The Company turned instead towards India, where its first factory was set up at Surat, on the west coast, in the second decade of the seventeenth century.

Indian cotton cloth proved more profitable than spices. Light, washable and cheap, calicoes became fashionable in England, where they alarmed wool merchants and were at times banned. The Company also shipped indigo, saltpetre for gunpowder and, increasingly, tea. Its three principal settlements grew into fortified towns. Madras, where Fort St George was begun in 1639, and Calcutta, founded around 1690, belonged to the Company; Bombay came to the English crown in 1661 as part of the dowry of Catherine of Braganza and was leased to the Company seven years later.

In London the Company was run by a governor and a court of directors chosen by its stockholders, and it raised capital by selling shares; in this respect it was one of the first great joint-stock corporations. Its monopoly, defended as a reward for risk, was unpopular. Rival merchants complained that a handful of men controlled a trade that ought to be open to all, and in the 1690s they obtained a charter for a second company. The competition damaged both, however, and in 1709 the two were merged.

Everything changed in the middle of the eighteenth century. The Company had always maintained a small armed force to protect its warehouses, but as the Mughal empire weakened and Britain and France fought for influence in southern India, that force became an army. In June 1757, at Plassey, a Company force led by Robert Clive defeated the Nawab of Bengal, and in 1765 the Mughal emperor granted the Company the diwani, the right to collect the revenues of Bengal, Bihar and Orissa. A trading corporation had become a territorial power.

The consequences were immense. Company officials returned to Britain with fortunes, and 'nabobs', as they were mockingly called, became figures of suspicion in London society. Much of the wealth came not from trade but from taxation. In 1770 a famine killed a large part of the population of Bengal; historians still disagree about how far the Company's revenue demands were responsible, and estimates of the dead vary widely. Parliament, alarmed by reports of corruption and by the Company's financial difficulties, passed the Regulating Act of 1773, which placed its political activities under government supervision, and Pitt's India Act of 1784 went further.

The China trade deserves particular notice. Tea had been a luxury in 1660; by the early nineteenth century it was drunk in households of every class, and it had to be paid for in silver. To reduce that outflow, the Company encouraged the sale of opium grown in Bengal to Chinese merchants, despite a Chinese ban, and the resulting conflict became the First Opium War of 1839 to 1842. The Company also intruded into American politics: the tea thrown into Boston harbour in 1773 came from its warehouses, and the monopoly that Parliament granted it in the same year enraged colonial merchants.

The Company's commercial privileges were meanwhile being dismantled. The Charter Act of 1813 ended its exclusive right to trade with India, except in tea and in the China trade, and the Act of 1833 abolished its commercial functions altogether. What remained was an administration of tax collectors, judges and soldiers, with an army of Indian sepoys commanded by British officers that by the 1850s was considerably larger than the British Army itself. Long before then, the directors in London had ceased to manage trade and spent much of their time on appointments, pensions and disputes with the government.

In May 1857, sepoys at Meerut rose against their officers, and rebellion spread across northern India. The Company's forces, reinforced from Britain, suppressed it within about a year, but the rising destroyed confidence in the Company's rule. Under the Government of India Act of 1858, its territories and its army passed to the Crown, and India was governed directly from London through a secretary of state. The Company survived as a legal entity, chiefly to pay dividends to its remaining shareholders, until it was finally wound up in 1874.

Its legacy is still argued over. The Company created a framework of law and administration, supported schools teaching in English, and commissioned surveys that mapped large parts of the subcontinent. Critics emphasise the drain of wealth to Britain and the damage done to Indian textile producers, though economic historians disagree about how severe that damage was and how quickly Indian industries recovered. The corporation itself was dissolved more than a century ago, yet its archives remain one of the richest sources for the history of South Asia and of British commerce.

Tip: select any text in the passage to highlight it in one of four colours. Click a highlight to remove it.

Questions 1–6◎ Practise this set only

Complete the summary below. Choose ONE WORD ONLY from the passage for each answer.

Write ONE WORD ONLY for each answer.

From merchant guild to ruler

Granted a royal charter at the end of 1600, the Company received a on English trade east of the Cape of Good Hope. Its early settlements, known as , existed to store and exchange goods rather than to make them. Once the Dutch had driven the English from the spice islands, Indian cloth became the Company's most valuable import. After Clive's victory at Plassey, the emperor granted the Company the right to collect Bengal's in 1765. Parliament then brought its political activities under government through the Regulating Act of 1773. Following the rising of 1857, its territories passed to the .

Questions 7–13◎ Practise this set only

Do the following statements agree with the information given in Reading Passage 1? Choose TRUE if the statement agrees with the information, FALSE if the statement contradicts the information, or NOT GIVEN if there is no information on this.

The Company's early voyages were paid for out of one common fund.
The English set up their first trading post in India at Surat.
Bombay became an English possession through a royal marriage.
The second company founded by rival merchants went on competing with the Company for the rest of the eighteenth century.
Historians agree that the Company's revenue demands caused the Bengal famine of 1770.
By the 1850s the Company's army was bigger than the army of the British state.
The Company built most of the railway network in India.

About this reading test

A full IELTS Academic Reading practice test with 40 questions on three original history passages: the rise and fall of the East India Company, the Lisbon earthquake of 1755, and whether historians should take sides in public political debates. Includes explanations and a band estimate.

PartPassageQuestionsQuestion typesTopicsWords
1The Company That Ruled Bengal1–13Summary completion, True / False / Not GivenBusiness & Economics, History966
2The Day Lisbon Fell14–26True / False / Not Given, Note completion, Multiple choiceEarth & Geography, History898
3The Historian's Oath27–40Matching features, Matching sentence endings, Yes / No / Not GivenHistory, Society828

How to use this practice test

  • Take the full test in 60 minutes, or practise one passage in 20 minutes.
  • Select text in the passage to highlight it, and click a question number to flag it for review.
  • Drag answers from a list into the gaps, or tap a gap to choose from a menu.
  • When you submit, each answer is marked right or wrong, with an explanation and a “Show in passage” button that highlights the sentence that proves it.
  • For gap-fill questions, keep to the word limit; an answer over the limit is marked wrong, as in the real exam.

All passages and questions on Sprechify are written by our own team in the official IELTS format. They are not taken from Cambridge IELTS books or any other published test. Band scores are estimates based on the conversion commonly used for practice tests.

More IELTS reading practice tests

All IELTS reading tests →More Business & Economics passagesMore History passagesMore Earth & Geography passagesMore Society passages