Podcast
Questions and Answers
Why was India considered an important trading centre since ancient times?
Why was India considered an important trading centre since ancient times?
Because merchants and traders from Europe and Asia came to India regularly for trade.
How did the nature of trade change in the early seventeenth century?
How did the nature of trade change in the early seventeenth century?
European countries began to form trading companies.
Who granted the English East India Company the exclusive right to trade with the east?
Who granted the English East India Company the exclusive right to trade with the east?
Queen Elizabeth I
What were the trading centres established by the European companies in India called?
What were the trading centres established by the European companies in India called?
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Why did the European trading companies prefer to set up their trading centres on the coast?
Why did the European trading companies prefer to set up their trading centres on the coast?
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Name two goods that were highly sought after by European trading companies in India.
Name two goods that were highly sought after by European trading companies in India.
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What led to the intense trade rivalry among the European trading companies in India?
What led to the intense trade rivalry among the European trading companies in India?
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How did the European trading companies try to increase their profits amidst shrinking trade?
How did the European trading companies try to increase their profits amidst shrinking trade?
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Which countries established trading companies in India by the seventeenth century?
Which countries established trading companies in India by the seventeenth century?
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What did the officials of the trading companies in India refer to themselves as?
What did the officials of the trading companies in India refer to themselves as?
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Study Notes
Early Indian Trade
- India was an important trading center since ancient times, attracting merchants and traders from Europe and Asia.
- The frequency of trade increased in the medieval period, supported by Indian rulers who profited from it.
Rise of Trading Companies
- European countries formed trading companies to trade with the east, including the English East India Company in 1600.
- The English East India Company was granted a charter by Queen Elizabeth I, giving it exclusive rights to trade with the east.
- Trading companies from Portugal, Holland, England, France, and Denmark established their base in India from the 17th century onwards.
Establishment of Trading Centers
- Trading centers, called 'factories', were set up in coastal areas, consisting of offices, godowns, and residential quarters.
- Some factories were fortified over time.
- Companies preferred coastal areas for trade due to ease of transportation and access to sea routes.
Trade Rivalry
- Intense rivalry emerged among trading companies due to competition for goods like spices, cotton, silk, and indigo.
- Each company aimed to buy goods at low prices in India and sell them at high prices in Europe, leading to a desire for trade monopoly.
- The quantum of trade was insufficient to sustain all companies, leading to shrinking profits and the need to eliminate competitors.
- Governments began to strengthen their armies and naval forces to support their trading companies and achieve their aims.
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Description
This quiz covers the history of British trade in India, from ancient times to the early 17th century, including the role of Indian rulers and the shift from individual merchants to backed trade.
