Question

How did the trading companies use their military power to increase their trade in the subcontinent?

Answer 1

Instructions: Explain the following points:

• Trading groups took sides whenever India rulers were fighting among themselves.
• The companies provided military assistance to the local ruler.
• In exchange, the rulers gave them trade concessions and large amount of money.

Solution:

• The companies used their military to make profits through trade.
• Whenever any two Indian rulers were fighting among themselves, the companies often got involved into the battle and joined either sides. This way, the companies used to lend their support to local rulers in the form of military in exchange for trade concessions.
• The rulers often gifted large sums of money to the companies for their help. This money further increased the trade of the companies.