European trading companies were attracted to India because of a number of reasons:
(i) Trading with India was highly profitable and fruitful to the businessmen in Europe.
(ii) The European trading companies purchased goods at cheaper and sold them in Europe at the higher prices.
(iii) The fine qualities of cotton and silk produced in India had a big market in Europe.
(iv) Indian spices like – pepper, cloves, cardamom and cinnamon were in great demand in Europe.
