There were trade relations between India and Europe right from ancient times. Three main routes were there of this trade :

1. First route was northern route. This route was going on through Afganisthan, Caspean Sea and Black Sea.
2. Second route was middle route which was going on through Iran, Iraq and Seria.
3. Third route was southern route. This route was going on through Indian Ocean, Arabian Sea, Red Sea and Egypt.

States of Western Asia and Southern-Eastern Europe were occupied by Turkey in 15th century. It led to closure of ancient trade routes between India and Europe. That’s why European countries tried to find new sea routes to reach India. First of all the Portuguese sailor Vasco-de-Gama reached port of Calicut of India on 27th May 1498. So, Portuguese started to do trade with India. This process is known as Merchantilism whose objective was to earn money.

Trade Wars: Other European powers also established trade relations with India When they found Portuguese earning money through trade with India. These European powers were Dutch, the British and the French. Wars started between them to establish their supremacy on Indian trade. These wars are known as Trade Wars.

Gradually they established their factories and establishments in India:

• Main Portuguese establishments in India were at Goa,’ Daman, Basin, Bombay, Saint Tom, Hugli and Salset.
• Main Dutch establishments in India were at Cochin,* N&gapatnam, Pulkit and Chinsura.
• Main British establishments in India were at Surat, Ahmedabad, Baloch, Agra, Bombay and Calcutta.
• Main French establishments were at Pondicherry, Chandranagar and Karikal.

With the passage of time, all these four European powers came in direct conflict with each other to win over each other’s establishments. Impact of Portuguese and Dutch reduced to a great extdht till 17th century due to this conflict. Till this time, only French and the British remained in Indian scenario. They both were also engaged in conflict with each other to keep monopoly over Indian trade. Later on the British emerged victorious out of this conflict.