Agency Houses in British India
Agency Houses in British India, were trading companies that arose in 17th and 18th century India during the Company rule in India. 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. 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: 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. Legacy. The agency houses played a major role in shaping the economy of  colonial India. Several early banks in India, such as the Bank of Hindostan, were founded by these Agency Houses. They also invented the Tinkathia System, which was a major point of contention during the Indian independence movement. List of notable Agency Houses. The Agency Houses of British India include: