Question

The English East India Company was the only European company that traded with India. State whether true or false.

Answer 1

Answer: The correct answer is False.

• There were trading companies from Portugal, also there were Dutch and French traders.
• Portuguese had already established their base in Western India, when the British arrived in India.
• All the trading companies wanted to buy the same things.
• There was a big market in Europe for the fine qualities of silk and cotton produced in India.
• There was also great demand for cinnamon, cardamom, cloves and pepper.
• There was a reduction in the profits that could be earned by these European companies from the goods they purchased in India, as the prices had shot up due to competition.
• Hence eliminating rival competitions among European trading companies was the only way to flourish.
• All these led to fierce battles between European trading companies.
• Through fortification, trading posts were protected.
• Hence they prevented each other’s rival ships from moving with supply of goods by blockading routes, sinking each other’s ships through the 17th and 18th centuries.