The Early Role of the East India Company in India

1.Initial Phase as a Trading Corporation: From its establishment in 1600 until 1757, the East India Company operated primarily as a trading entity. Its core business involved importing goods or precious metals to India and exchanging them for local products such as textiles and spices, which were highly valued in Europe and beyond.

2.Profit Generation Through Indian Goods: The Company's profits were not derived from the resources it brought to India but from the Indian goods it exported to foreign markets. These goods, known for their quality and uniqueness, fetched high prices overseas, significantly benefiting the Company’s financial status.

Market Expansion and Promotion of Indian Goods

1.Opening New Markets: The Company actively sought to expand its market reach for Indian products, not just in Britain but across other countries as well. By finding new buyers and markets, it aimed to increase the demand for Indian goods, which, in turn, would increase the volume of goods it could trade.

2.Encouragement of Indian Manufacturing: As a result of the Company’s efforts to open new markets, there was a notable increase in the export of Indian manufactured goods. This rise in demand encouraged the production of these goods within India, contributing to the local economy and manufacturing sector.

Relationship with Indian Rulers