Why European Companies Chooses To Tread In India

What attracted European trading companies to India? 

Following were the reasons European trading companies were attracted to India: 

1. The European trading companies were looking for new lands from which it could buy goods at a cheap price, and carry them back to Europe to sell at higher prices. 

2. The fine qualities of cotton and silk produced in India had a big market in Europe. 

3. Pepper, cloves, cardamom and cinnamon too were in great demand. 

4. Spices were very popular and extremely important for making the winter salted meat tastier.

5. Spices were routed through Arab traders were sold at high prices thus reduced profit margins of European traders. The urge to earn high profit

margins forced European traders to discover new sea routes to trade directly with India.