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Question
Explain the following statement with a reason.
European rulers started giving military protection and trade concessions to the trading companies.
Solution
The middle of the 16th century and the middle of the 18th century witnessed the expansion of India’s overseas trade. This was due to the trading activities of the various European companies that came to India during this period. India had commercial dealings with the western countries from time immemorial.
European rulers started giving military protection and trade concessions to the trading companies because:
- If conflicts happen with Indian rulers, it will become difficult for European traders to keep their business.
- They wanted to separate trade and conflicts from Indian politics.
- The European rulers wanted the sole right to trade with the East without competition from other British traders.
- The European companies wanted to buy fine qualities of cloth and spices from India, which made them flourish in trade and wealth.
- Trade concessions were given as an incentive to the trading companies so that they remained to their rules and regulations in trade.
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