​From Trading Company to Political Power

The mid-18th century saw the transformation of the English East India Company from trading enterprises to political power.

• Trading companies in those days made profit primarily by excluding competition so that they could buy cheap and sell dear.
• The beginning of the empire is usually traced to 1757 when the British defeated the Bengal Nawab at Plassey. The ground for the victory of 1757 was laid in South India where the British military might and diplomatic strategy were successfully tested out in the disagreement with the French Company.