EUROPEAN TRADE

For hundreds of years, India was famous across the world for its many valuable
spices like pepper, cinnamon, cloves and nutmeg. European traders and
explorers desperately looked for a sea route to India that would make the
transport of spices much easier, faster and cheaper. In the late 15th century, an
explorer from Portugal named Vasco da Gama finally managed to find a sea
route from Europe to India by sailing around the southern tip of Africa.
Da Gama's voyage in 1498 opened up a new era of maritime trade between
India and Europe. Over the next few centuries, trading companies were
established by several major European nations like Portugal, the Netherlands,
England and France. Their main goal was to engage in the lucrative trade of
Indian spices and other valuable goods like cotton, silk, indigo dye, tea and
opium.
These European trading firms gradually set up a network of coastal outposts
and trading settlements across India - the Portuguese in Goa, the Dutch in
cities like Pulicat, the English in Bombay, Madras and Calcutta, and the French
in Pondicherry. From these bases, they could acquire spices, textiles and other
commodities supplied from the interiors of India. What started as business
enterprises focused on maritime trade slowly transformed into territorial
projects as the European companies used military forces to protect their
commercial interests. This inevitably led to conflicts with local Indian rulers as
well as among the European trading rivals themselves as they jockeyed for
supremacy.

Portuguese Pioneers
In 1498, Portuguese explorer Vasco da Gama discovered a sea route from
Europe to India by sailing around the Cape of Good Hope. This opened up
direct maritime trade between Europe and India.
The Portuguese quickly established a trade monopoly, becoming the first
Europeans to set up outposts along the western coast of India.
Their first settlement was established in Calicut in 1510. This was followed by
conquest of Goa in 1510 which became the capital of the Portuguese Estado da
India (State of India).
Other important Portuguese trade settlements were at Daman and Diu on the
Gujarat coast.
The Portuguese focused their trade on spices like pepper, cinnamon, cloves,
ginger which were in huge demand in Europe.
They controlled the sea routes in the Indian Ocean and levied tax (cartaze) on
trade along the Indian coasts.
In their settlements, they built forts and Churches, established Portuguese
cultural influence.
Goa developed as the main entrepot for Portuguese trade which included
goods like cotton textiles, indigo dye, coconut, rice along with spices.
By 1600s, the Portuguese trade monopoly was challenged by the Dutch and
English trading companies which impacted their dominance.
However, the Portuguese colonial presence endured for over 450 years until
the annexation of their remaining Indian territories like Goa by India in the
1960s.

Dutch Arrivals
The Dutch entered the Indian maritime trade arena at the beginning of the
17th century, challenging the Portuguese monopoly.
In 1602, the Dutch East India Company (Verenigde Oostindische Compagnie or
VOC) was established to monopolize the spice trade.
The VOC established its first factory in India at Masaulipatnam on the
Coromandel Coast in 1605. This was followed by factories at Pulicat (1610),
Surat (1616), Bimlipatam (1641) and Negapatam (1658).
Their main trade items were spices like pepper and nutmeg which they sourced
from the Indonesian islands. But they also traded cotton, silk, indigo, rice and
opium in India.
To facilitate their trade, the Dutch struck deals with local rulers like the Zamorin
of Calicut, Nayaks of Madurai and Mughals for duty-free conditions.
They established control over the weaving and textile production centers of
Pulicat and Surat through their fortified factories.
In their quest for dominance, the Dutch captured many Portuguese settlements
in India like Hughli (1627) and fought frequently with them.
However, the Dutch never intended territorial conquest unlike the English and
French. Their focus was mainly on maintaining commercial monopolies.
By the late 18th century, the Dutch saw a decline due to corruption and
mismanagement. Most of their Indian settlements were captured by the
English.
The Dutch left a lasting impact on towns like Sadras (now Sadras Pattinam),
Pulicat, Surat and the Coromandel coast with their forts and cemeteries.

English Ascendancy
The English arrived late onto the Indian trade scene, after the Portuguese and
Dutch had already established footholds.
In 1600, the East India Company was established to tap into the lucrative spice
trade with the East.
The Company set up its first factory in India at Surat in 1619, under a farman
(permit) from the Mughal emperor Jahangir.
Over time, the English expanded their presence by establishing trade
settlements at Madras (1639), Bombay (1668), Calcutta (1690) and many other
places.
Their main trade items from India included cotton and silk textiles, indigo dye,
saltpeter (for gunpowder), opium, spices and tea.
To secure their commercial interests, the Company engaged in territorial
annexations and political subjugation of Indian rulers.
Key events were the Battle of Plassey (1757) and Battle of Buxar (1764) which
helped the English become the dominant military and political power.
The English employed trained sepoy armies and naval squadrons to defend
their settlements and trade interests.
There was intense Anglo-Dutch rivalry, with the English ultimately prevailing
after the Napoleonic Wars.
By the early 19th century, the East India Company had established control over
most of present-day India, Pakistan and Bangladesh.
The English promoted policies that consolidated their economic monopoly over
India's industries and exports.

So in essence, the English arrived purely as traders but ultimately transitioned

to become the paramount colonial political power in India through a
combination of military force and economic dominance over the subcontinent.

FRENCH FORRAY
The French were the last major European maritime power to arrive in India,
establishing their trading outposts in the 17th century. In 1664, the French East
India Company was formed and they set up their first Indian settlement at
Surat on the western coast. This was followed by founding the city of
Pondicherry on the Coromandel Coast in 1674, which became the capital of the
French territories in India known as the "French Establishments in India."
Over time, the French acquired other enclaves like Chandannagar in Bengal,
Karaikal and Yanam in the south, and Mahe on the Malabar coast. From these
bases, they conducted a flourishing trade, primarily in Indian cotton and silk
textiles, spices, and coffee. Much of this trade was centered around the
prosperous settlement of Pondicherry.
However, the French were not just interested in commerce. Like their British
rivals, they too had territorial ambitions which brought them into conflicts with
local rulers as well as the British East India Company forces. The struggle for
supremacy between the French and British in India reached its peak during the
Carnatic Wars and the Seven Years War in the mid-18th century. Despite some
initial victories, the French were eventually defeated, losing most of their
Indian territories to the British by 1814.

Trade Commodities and Commerce

Spices - pepper, cinnamon, cloves, nutmeg
Textiles - cotton, silk, printed calicos
Dyes like indigo
Saltpeter (for gunpowder)
Tea, coffee, opium
SOCIO ECONOMIC IMPACT
When European trading companies first came to India, they wanted to buy and
sell many goods from India like textiles, dyes, saltpeter and opium. This led to
big changes in India's economy.
Many communities and regions in India started producing these goods to sell
to the European traders. Farmers grew more cotton, indigo for dyes, and
opium. Weavers made more cotton and silk textiles. This meant other
traditional industries like handicrafts declined as people focused on what the
Europeans wanted.
The European traders made a lot of money from buying cheap and selling
expensive in India. This wealth went from India back to Europe, making some
Indians poor while Europeans got richer.
Around the European trade settlements like Surat, Bombay and Calcutta, new
businesses emerged related to the sea trade like shipbuilding, banking, and
insurance. These new economic centers grew.
However, Indian producers and artisans had to sell to the European companies
at low prices set by them. Peasants were forced to grow cash crops for export
instead of food crops.
Overall, European trade control took away India's freedom over its own
economy and exports. India became part of a trade system that benefited
Europe rather than itself. This hurt traditional industries and economic patterns
in India over time.

The East India Company

The East India Company was formed in 1600 to tap into the lucrative spice
trade with Asia. It received a royal charter from Queen Elizabeth I.
In 1608, the Company established its first factory in India at Surat after
receiving permission from the Mughal emperor Jahangir.
To expand its trade, the Company set up factories/trading posts in Madras
(1639), Bombay (1668), Calcutta (1690) and many other places.
The Company's main exports from India were cotton and silk textiles, indigo
dye, saltpeter, tea, opium and spices.
It employed sepoy armies to protect its factories and trade interests from other
European rivals and Indian rulers.
Key military victories like the Battle of Plassey (1757) against Nawab of Bengal
and Battle of Buxar (1764) against Mughal-Awadh alliance consolidated the
Company's territorial control.
The Company acquired administrative powers like revenue collection in areas
under its control, minting currency and maintaining armed forces.
It promoted policies to boost production of cash crops like indigo, opium and
raw cotton to feed British mills back home.
By the 1850s, the Company had de facto control over most of present-day
India, Pakistan and Bangladesh.
Excesses by Company officials, coupled with failed policies like the
discriminatory tax on salt, contributed to the 1857 Sepoy Mutiny against British
rule in India.
After suppressing the Mutiny in 1858, the Company was dissolved and its
territories in India were transferred to the British Crown.
So in essence, what began as a chartered trading company eventually
transformed into the most powerful political force in India through a mix of
military conquests, economic monopolies and territorial annexations over two
centuries.