Territorial Expansion
During the 18th century, the Hindu Maratha Empire expanded rapidly, claiming Konkan and much of eastern Gujarat from the disintegrating Mughal Empire. In western Gujarat, including Kathiawar and Kutch, the loosening of Mughal control allowed numerous local rulers to create virtually independent states. The first conflict between the British and the Marathas was the First Anglo-Maratha War which began in 1774 and resulted in the 1782 treaty of Salbai, by which the island of Salsette, adjacent to Bombay island, was ceded to the British, while Bharuch was ceded to the Maratha ruler Scindia. The British annexed Surat in 1800. British territory was enlarged in the Second Anglo-Maratha War which ended in 1803. The East India Company received the districts of Bharuch, Kaira, etc., and the Maratha Gaekwad rulers of Baroda acknowledged British sovereignty.
In 1803 the Bombay Presidency included only Salsette, the islands of the harbour (since 1774), Surat and Bankot (since 1756); but between this date and 1827 the framework of the presidency took shape. The Gujarat districts were taken over by the Bombay government in 1805 and enlarged in 1818. Baji Rao II, the last of the peshwas, who had attempted to shake off the British yoke, was defeated in the Battle of Khadki, captured subsequently and pensioned (1817/1818), and large portions of his dominions (Pune, Ahmednagar, Nasik, Sholapur, Belgaum, Kaladgi, Dharwad, etc.) were included in the Presidency, the settlement of which was completed by Mountstuart Elphinstone, governor from 1819 to 1827. His policy was to rule as far as possible on native lines, avoiding all changes for which the population was not yet ripe; but the grosser abuses of the old regime were stopped, the country was pacified, the laws were codified, and courts and schools were established. The period that followed is notable mainly for the enlargement of the Presidency through the lapse of certain native states, by the addition of Aden (1839) and Sindh (1843), and the lease of the Panch Mahals from Scindia (1853). The establishment of an orderly administration, one outcome of which was a general fall of prices that made the unwonted regularity of the collection of taxes doubly unwelcome, naturally excited a certain amount of misgiving and resentment; but on the whole the population was prosperous and contented, and under Lord Elphinstone (1853–1860) the presidency passed through the crisis of the Revolt of 1857 without any general rising. Outbreaks among the troops at Karachi, Ahmedabad and Kolhapur were quickly put down, two regiments being disbanded, and the rebellions in Gujarat, among the Bhils, and in the southern Maratha country were local and isolated. Under Sir Bartle Frere (1862–1867) agricultural prosperity reached its highest point, as a result of the American Civil War and the consequent enormous demand for Indian cotton in Europe. The money thus poured into the country produced an epidemic of speculation known as the Share Mania (1864–1865), which ended in a commercial crisis and the failure of the bank of Bombay (1866). But the peasantry gained on the whole more than they lost, and the trade of Bombay was not permanently injured. Sir Bartle Frere encouraged the completion of the great trunk lines of railways, and with the funds obtained by the demolition of the town walls (1862) he began the magnificent series of public buildings that now adorn Bombay (Mumbai).
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