The East India Company appointed Gomasthas in India due to the following reasons :
(i) Before 1760s, British cotton industries had not expanded and Indian fine textiles were in great demand in Europe.
(ii) The East India Company wanted to expand exports from India but French, Dutch, Portuguese and local traders competed in the market.
(iii) The weavers and supply merchants could bargain and try selling the products to the best buyer. Hence they appointed Gomasthas to supervise and collect supplies.
