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# European Trading Companies in India ## Introduction The first trading depot, known as a **factory**, was set up in **Surat** by the **East India Company** in the early 17th century. Mughal Emperor Jahangir granted permission to set up factories in his territories. The East India Company establis...

# European Trading Companies in India ## Introduction The first trading depot, known as a **factory**, was set up in **Surat** by the **East India Company** in the early 17th century. Mughal Emperor Jahangir granted permission to set up factories in his territories. The East India Company established factories at two places: **Surat** (Gujarat) on the west coast and **Hugli** (West Bengal) in the east. In due course, many locations in the Indian peninsula became the centres of international trade in commodities like spices, cotton, raw silk, sugar, saltpetre, textile and indigo. ## French East India Company The **French East India Company (FEIC)** set up settlements at **Chandannagar** (Bengal), **Malabar** (Kerala), **Karaikal** and **Puducherry** on the eastern coast and **Mauritius** in the Indian Ocean in 1664. The French East India Company was largely a government-controlled business venture and depended on the French government for its funding. A major role in the expansion of French power in India was played by **Dupleix**, the French Governor General at **Pondicherry** (Puducherry). ## Rivalry in Trade During the 17th and 18th centuries, rulers of many European countries pursued the policy of **mercantilism**. Mercantilism is also known as commercialism. Therefore, European companies supported by the respective governments came into existence. The **Royal Charter** issued by Queen Elizabeth I, however, could not prevent other European powers from entering into trade with the eastern world. By the time the English appeared, the Portuguese had already established their presence on the western coast of India. They had their base at **Goa**. In fact, in 1498 a Portuguese explorer, **Vasco-da-Gama**, had discovered the sea-route to India via the **Cape of Good Hope**. By the early 17th century, the **Dutch** and the **French** traders also arrived on the scene. The presence of so many companies intensified competition and reduced profits. All of them wanted to buy goods at low prices in India and sell them at very high prices elsewhere, particularly in Europe. The need to secure markets resulted in aggressive wars between the trading companies. During this period, trade was carried on with arms and rival countries regularly sank each other's ships, blocked routes and prevented rival ships from moving with supplies of goods. Trading centres were protected through fortifications and companies raised their own armies. In course of time, the Portugese and the Dutch were ousted from the Indian trade. The English and the French started dominating the trade between India and Europe. ## Anglo-French Rivalry Around the middle of the 18th century, English and French trade interests clashed that resulted in the three Anglo-French wars. These are referred to as the **Carnatic Wars** (1744-1763), since most of the battles were fought in the region within the present state of Tamil Nadu. ## Factories of the European Companies in India During the 17th Century A map of India is shown, with the following labels: - **English** - **French** - **Dutch** - **Danish** - **Portuguese** - **International Boundary** - **Ocean** The map shows various factories established by the European trading companies in India during the 17th century: - **Surat** - **Hugli** - **Daman** - **Diu** - **Bombay** - **Goa** - **Masulipatnam** - **Madras** - **Puducherry** - **Chandannagar** - **Karaikal** - **Nagapatnam** - **Trincomalee** - **Colombo** - **Cochin** - **Calicut** - **Mangalore** - **Yanaon** - **St. George** - **Negapatam** - **Malacca**