The European and the British traders initially came to India for trading purposes. The Industrial Revolution in Britain led to the increase in demand for raw materials for the factories there. At the same time, they also required a market to sell their finished goods.

India provided such a platform to Britain to fulfil all their needs. The 18th century was a period of internal power struggle in India and with the declining power of the Mughal Empire, the British officials were provided with the perfect opportunity to establish their hold over Indian Territory.

They did these through numerous wars, forced treaties, annexations of and alliances with the various regional powers all over the country. Their new administrative and economic policies helped them consolidate their control over the country.

Their land revenue policies help them keep the poor farmers in check and get huge sums as revenues in return. They forced the commercialisation of agriculture with the growing of various cash crops and the raw materials for the industries in the Britain.

With the strong political control, the British were able to monopolise the trade with India. They defeated their foreign rivals in trade so that there could be no competition. They monopolised the sale of all kinds of raw materials and bought these at low prices whereas the Indian weavers had to buy them at exorbitant prices.

Heavy duties were imposed on Indian goods entering Britain so as to protect their own industry. Various investments were made to improve the transport and communication system in the country to facilitate the easy transfer of raw materials from the farms to the port, and of finished goods from the ports to the markets.

Also, English education was introduced to create a class of educated Indians who would assist the British in ruling the country and strengthen their political authority. All these measures helped the British to establish, consolidate and continue their rule over India.