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The first installment of The Moonstone was published in January 1868, about a decade after the Indian Rebellion of 1857-1858 (sometimes known as the Indian Mutiny). The British East India Company was initially formed as a trade corporation, but by 1858, the Company was effectively ruling most of modern-day India, Pakistan, and Bangladesh, either through direct administration, or through client kings. Imperial exploitation and a lack of awareness for the many varied and complex local cultural and religious nuances led to tension, resentment, and eventually a military uprising.
After months of military conflict, British forces defeated Indian troops. This conflict led to the dissolution of the British East India company, and Britain assumed direct control over India after the passage of the Government of India Act in 1858. This Act inaugurated the British Raj, or direct rule in India, which would last for almost a century, until the creation of two independent dominions (India and Pakistan) in 1947. In 1877, Queen Victoria was granted the title of Empress of India.
These events, as well as the vast wealth that control of Indian territory brought to Britain, meant that many Victorian English readers were fascinated by depictions of India (including often inaccurate representations of its culture and religions).
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