The origin of British India can be traced to warfare in 18th-century Europe and India, trade-related conflicts and disputes, and the East India Company’s business model. The state that emerged from these roots survived by reforming the institutions of capitalism, military strategy, and political strategy. As the 19th century unfolded and its power became paramount, the Company evolved from a trading firm to a protector of trade. The rapid growth of the three port cities where Indo-European trade and naval power was concentrated exemplifies that commitment. But beyond maintaining an army and protecting trade routes, the state remained limited in its reach.
The Parsi community enjoyed a special status in western India as enterprising traders, who were quick to appreciate the advantages of the British connection especially in driving a huge trade in the Indian Ocean and specifically with China from roughly the latter half of the 18th century. Arriving in India as asylum seekers, the community quickly adapted to the host society by adopting the local language (Gujarati) and by deploying their commercial and manufacturing skills in consolidating their social location in the region. They were mindful of the ruling powers and developed over time important strategies of working closely with local interests, so much so that they acquired a foothold in landed and commercial society. It was in the late 17th and 18th centuries that they forged important links with European traders and trading companies, working as brokers for procurement of textiles and in the process acquiring a very close understanding of foreign markets. This was an important resource that enabled the community to play a major role on the emerging proto-colonial trade of western India, largely channeled through Bombay. The late 18th and 19th centuries saw the community produce major players and merchants of renown who amassed considerable wealth from the trade in raw cotton and opium with China and invested that wealth in philanthropy and subsequently in entrepreneurship. The community was primarily located in Bombay and western India, although their ventures took them as far as Calcutta and Canton. More recently there has been a considerable volume of scholarship on the community, emphasizing its origins, its histories and self-representation, and its use of the English colonial law in defining its own status and streamlining its customs.