Why are European companies attracted to India?

What attracted to European companies to India?

The fine qualities of cotton and silk produced in India had a big market in Europe. Spices like Pepper, cloves, cardamom and cinnamon too were in great demand. These were the reasons that attracted European trading companies to India.

What were the reasons for the competition of European companies in India?

Answer

  • There was rivalry.
  • between the trading companies of different European countries in India because:
  • The amount of trade was not sufficient to sustain all the.
  • companies.
  • There was a competition to make more profit.
  • In order to gain more trade facilities they had to gain.
  • political control over the areas.

What did European trading companies come to India?

What attracted European trading companies to India? Answer: The East India Company saw great opportunities in trade with India. The company could buy goods at a cheaper rate in India and carry” them back to Europe to sell at a higher price.

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Why were the British attracted to India?

The British East India Company came to India as traders in spices, a very important commodity in Europe back then as it was used to preserve meat. Apart from that, they primarily traded in silk, cotton, indigo dye, tea and opium.

Who came second in India?

French East India Company was set up in 1664 during the French ruler Louis XIV, with the support of his Finance Minister Colbert. It was a government company. 1st French settlement in India was at Surat (1668) and 2nd at Masulipatnam (1669).

European Powers That Came To India.

Sr. No. 4.
Fort Fort St. Angelo (1stPortuguese fort)
Year 1505
Place Kannur

What was reason behind the battle between European trading companies?

Explanation: The intense competition to hold a monopoly resulted in fierce battle between the trading companies. Trade was carried on with arms, and fortifications were done to protect the trading posts.

Why did the European trading companies want to establish trading alliances with India?

European trading companies ventured across the oceans so as to look for new lands from where they could buy goods at a cheap price, and carry them back to Europe to sell at higher prices. Hence European trading companies were attracted to India.

Why did European trading companies decide to eliminate rival competitors?

Competition among them was fierce and this pushed up the purchase prices of these goods. This inevitably reduced the volume of profits which could be earned. Hence, the European trade companies could flourish in India only by eliminating rival competitors.

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Why is India an attractive market for investment?

India remains an attractive destination for foreign direct investments (FDI) on account of healthy prospects of economic growth and its skilled workforce, according to a survey by Deloitte. … The US and UK business leaders expressed greater confidence in India’s stability,” it said.

Why were the European traders attracted towards the province of Bengal?

Bengal was the richest and most fertile province in India at that time. It was known as the paradise of the earth and this province attracted traders from many European countries.

Why was trade with India profitable for the European trade?

Trading with India was highly profitable for European traders because: The fine qualities of silk and cotton attracted them to india. Indian Spices like pepper, cloves, cardamom and cinnamon were in great demand in Europe. They bought goods at a cheap price from India and sold them at a high price in Europe.