Question

How did the royal charter empower the East India Company?

Answer 1

Dear student,

The charter signed by Queen Elizabeth I on December 31, 1600 gave a monopoly on trade in Asia to the East India Company. No other English company could trade in Asia, including India under this charter. The charter was of immense significance to the Company. It gave them access to lucrative territories for trade. The Company could now trade in India. It started to export products like spices from India and then moved on to trading in other products like cotton textile. The charter, therefore, opened up the way for the company to earning immense profits and acquire political power in India. But still , the company had to face competitions with other countries' companies like that of French, Dutch, Portuguese etc

Regards.