Question

how did the east india company begin trade in bengal

Answer 1

East India Company Begins Trade in Bengal. The first English factory was set up on the banks of the river Hugli in Bengal 1651. As their expanded, the East India Company convinced merchants and traders to come and settle near the factory. By 1696, the Company began building a fort around the Hugli settlement.

Answer 2

In 1651, the first English factory was set up on the banks of river Hugli and first english factory was opened up  at Surat in 1608.

Aurangzeb issued a farman granting the company the right to trade duty free.

The company tried to press for more concessions and manipulate existing privileges. 

For trading purpose the passes were issued to company officials but they misused these passes for private trade and accumulate wealth on the name of company.

Soon because of private trade company suffered and went into loses. To cure this anamoly British government made strict rules.