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Relations with the English and the Anglo-Mughal War

In 1686, the East India Company, which had unsuccessfully tried to obtain a firman that would grant them regular trading privileges throughout the Mughal Empire, initiated the Anglo-Mughal War. This war ended in disaster for the English after Aurangzeb in 1689 dispatched a large fleet from Janjira that blockaded Bombay. The ships, commanded by Sidi Yaqub, were manned by Indians and Mappilas. In 1690, realising the war was not going favourably for them, the Company sent envoys to Aurangzeb's camp to plead for a pardon. The company's envoys prostrated themselves before the emperor, agreed pay a large indemnity, and promise to refrain from such actions in the future.

In September 1695, English pirate Henry Every conducted one of the most profitable pirate raids in history with his capture of a Grand Mughal grab convoy near Surat. The Indian ships had been returning home from their annual pilgrimage to Mecca when the pirate struck, capturing the Ganj-i-Sawai, reportedly the largest ship in the Muslim fleet, and its escorts in the process. When news of the capture reached the mainland, a livid Aurangzeb nearly ordered an armed attack against the English-governed city of Bombay, though he finally agreed to compromise after the Company promised to pay financial reparations, estimated at £600,000 by the Mughal authorities. Meanwhile, Aurangzeb shut down four of the English East India Company's factories, imprisoned the workers and captains (who were nearly lynched by a rioting mob), and threatened to put an end to all English trading in India until Every was captured. The Lords Justices of England offered a bounty for Every's apprehension, leading to the first worldwide manhunt in recorded history. However, Every successfully eluded capture.

In 1702, Aurangzeb sent Daud Khan Panni, the Mughal Empire's Subhedar of the Carnatic region, to besiege and blockade Fort St. George for more than three months. The governor of the fort Thomas Pitt was instructed by the East India Company to sue for peace.