•The main reason for this was the ruthless exploitation of the Indian people by the British. The British rule which was formally established after the Battle of Plassey in 1757 in Bengal, strove to fill the coffers of the East India Company at the expense of the Indians.

•It was not an ordinary merchant company formed for trade but had its train of soldiers who fought battles with the Portuguese and the French trading companies in the 17th and 18th centuries in order to establish its trade monopoly. After these rival powers had been defeated it also tried to humble the Indian traders who offered competition. When the Battle of Plassey was won in 1757, the British successfully imposed their trade monopoly over the area under their control, eliminated competition from the Indian traders and forced the artisans to sell their products to them.