The trade relations between India and Europe were quite old.

The old trade routes, such as, via Oxus, the Caspian Sea and the Black Sea, the Middle route through Syria to the Levant (Mediterranean) and the southern by sea to Egypt and the hence to Europe by way of the Nile, were closed and hence Vasco digamma of Portugal launched the search of a new sea-route in May 1498 A.D. and reached the coast of Calicut via Cape of Good Hope.

Hence, once again the trade relations progressed between India and European countries Vasco digamma was the first Portuguese representative in India, so the Portuguese were the first traders who settled down in India and continued their monopoly up to 16th century as no other European power had the courage to intervene in their supremacy.

The monopoly of Portugal over Eastern sea waters was further repeated in 1506 and 1514 A.D. by Pope Julius -II and Pope Louis- X respectively. But with the commencement of the reformation and the protestant movement the situation began to alter.

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The Protestants being opponents of catholic Pope entered the eastern sea. Actually, they wanted to offend the decree of the Pope, so the Dutch, the British and the French entered India.

The Europeans entered India as traders at the outset but with the passage of time, they indulged in the politics of India and established their colonies. Soon, the European nations stood face for supremacy.

Their commercial rivalry was eclipsed before the political rivalry. In this hard struggle among the Portuguese, the Dutch, the British and the French, Ultimately the British succeeded and the rest were eliminated.

The Portuguese:

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When Vascodagama reached Calicut through the Cape of Good Hope, Zamorin was the ruler of Calicut who granted sonic concessions to the Portuguese and Almedia was appointed viceroy of Portugalin the east.

He wanted to keep the sea route between India and Ponugal intact and he succeeded in this object to a large extent. The Portuguese defected the combined forces of Egyptians, the Zamorin and the ruler of Gujarat in 1509 A.D. near Diu and thus they established their control over Indian Ocean for the ensuing century more.

Albuquerque (1509-1515 A.D.) was the next Viceroy of Portugal in India. He was far re ambitious than his predecessor. He endeavoured his best to control the Persian Gulf and the Red Sea, so he made west coast of India the headquarters of the Portuguese.

He successfully devastated the treads of the Muslims in the Malaya Peninsula and the Far East. As a result of this policy of Albuquerque, the Portuguese could be able to establish their forts and factories at various places on the Indian Seacoast.

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The portuguess enjoyed their trade monopoly during the regime of the new viceroy and after him they soon took active part in the politics of India and as a result of it they embittered the Mughals who were. So far their friends. However, in the sixteenth century they established their control over Goa. Daman, Salsette, Bassein, and Bombay.

They also established their sway over Hooghly, Bengal and Santhome. They extracted great trade benefits from these places.

The Portuguese could not establish themselves firmly in India and as a result of their own carelessness; they were deprived of their trade and territories.

The main cause of their failure was the lack of resources. It was not possible for a country like Portugal to establish its control over India. Hence, the other European powers that were more powerful and resourceful success fully drove them out. Moreover, the Portuguese were fanatics.

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They adopted the policy of conversion which offended both the Hindus and the Muslims. They also tried to establish matrimonial alliances with the Indian rulers and their interference in the domestic affairs annoyed the Indian rulers, so they came into conflict with one another.

Soon the Mughals, the Marathas and the English people starched some significant territories from the Portuguese. It weakened Portugal and ultimately it lost her independent status to Spain and she was merged with Spain.

The Dutch:

The advent of the Dutch in the east was not a sudden event that occurred in our country. They made several attempts to establish themselves in India between to 1595-1601 A.D. but the Dutton succeeded in their mission in 1602 A.D. when the Dutch United East-India Company was formed.

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Hence the royal support and protection was granted to the Dutch people. During this period the naval force of the .Dutch was quite powerful. The Portuguese were so far the Masters of eastern waters; therefore, the Dutch had to struggle with them for supremacy.

They being powerful eclipsed the Portuguese in the eastern waters and established their monopoly on their trade. The supremacy of the Dutch continued for about a hundred years, i.e. complete in seventeenth century.

The British and the French were also endeavouring to establish themselves in this regions with the end in view the Dutch also established their trade centres at Calicut, Surat, Chinsura, Kasim Bazar, Balasore, Patna, Cochin, Nagapattam etc. The Dutch United East India Company was merely a trading Company.

They did not try to indulge in the political affairs of India because they wanted to establish themselves in South-East Asia. As a result of the policy of the Dutch people, there remained only the English and the French to struggle against each other for supremacy in the field of politics and trade.

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The French:

As the Portuguese, the Dutch and the English acquired immense riches by their eastern trade, so the French were also attracted to wards eastern trade. But the early efforts of the French did not prove to be fruitful partly on account of the half-hearted support from their home Country and partly due to European complications.

In 1664 A.D. the first French Company was formed for trading with. India under the patronage of colbert, the minister, and Louis XIV, the king of France. The French besides establishing their control over the island of Mauritius in the Arabian Sea founded their trading centres at Pondicherry and Chandranagar in India.

As the Dutch were comparatively more powerful than the Portuguese, they eliminated their power from India but they themselves were more interested in south-east Asia than India, So there remained only the French to face the British for supremacy.

The French achieved tremendous successes in the South during the governorship of Alexander Dumas and Dupleix. They were more interested in politics than in trade.

As a result of it they had to wage three major wars against the English. These three Karnataka wars proved fatal for the existence of the French and their dream of establishing an empire in India ended in smoke.

The English:

Seeing the other European countries prospering rapidly due to their trade companies in India, England also established a company to trade with India in 1600 A.D. From time to time this Company sent its representatives such as William Hawkins, Captain Middleton and Sir Thomas Roe to the courts of the Mughal rulers so that the Company of England could get some trading rights in India. In 1611 A.D. the English founded their first factory after getting the permission of the then mughal governor.

Later on they also founded their Companies in Ahmedabad, Burhanpur, Ajmer. Agra, Patqa, Kasim Bazar, Dacca. Calcutta and Bombay. As England found it lucrative trade, one more company was established in 1698 A.D. But as the interests of both the companies collided with each other, both of them were merged into one in 1702 A.D. Henceforth, the British Company came to be known as the east India Company. .

The East India Company got the special rights of trading with out paying taxes in Hyderabad, Bengal and Gujarat. The right was given to the company by the mughal emperor Furrukhsiyar for he was promised to be paid rupees 3000 per annum by the Company as the price of this concession.

This facility not only helped the English to prosper in their trade in India but also helped in the expansion of their empire as it gave rise to their struggle with the native rulers. Undoubtedly, the English were interested in their territorial extension and political supremacy but they never ignored their trade as well.

As a result of it their trade went on prospering day in and day out. No doubt, the French rivalry was a great hurdle in their way of smooth working; however, the English succeeded in establishing their say over Bengal and in eliminating the French rivalry. The English established themselves firmly in India by the end of the 18th century.

Now they were having no rivals to contest.