• The victory of the British led to the signing of the Treaty of Allahabad (1765) by Robert Clive with Shah Alam II.
• By this treaty the Company got the Diwani right to collect land revenue from the princely states of Bengal, Bihar and Orissa

• The wars fought between Britain and France in Europe also led to clashes between these two countries over their colonial possessions in North America and India.
• When the war broke out, the new Governor of Pondicherry, Dupleix appealed to Morse, the Governor of Madras, to remain neutral.
• But a British squadron under Commodore Barnett captured some of the French vessels with Indian goods and precipitated the situation

• Factory in the then context referred to a warehouse or a place where factors, or commercial agents, resided to transact business for their employers abroad.
• In 1510, Albuquerque captured Goa from the ruler of Bijapur and made it the capital of the Portuguese Empire in the East.
• The Dutch set up factories at Masulipatam (1605), Pulicat (1610), Surat (1616), Bimilipatam (1641), Karaikal (1645), Chinsura (1653), Kasimbazar, Baranagore, Patna, Balasore, Nagapattinam (all in 1658) and Cochin (1663).
• Denmark also established trade settlements in India and their settlements were at Tranquebar in Tamilnadu (1620) and Serampore, their headquarters in Bengal.
• Surat (1668), Masulipatnarn (1669), Pondicherry, a small village then (1673), Chandernagore in Bengal (1690).
• Later they acquired Mahe in the Malabar, Yanam in Coromandal (both in 1725) and Karaikal (1739).

• Anandarangam (1709-1761), was born to a leading merchant of the time named Tiruvengadam Pillai
• After his father's death at Pondicherry, in view of the support given by the French Governors Dumas and Dupleix became the greatest merchant at Pondicherry. 
• Dupleix appointed him the Chief Dubhashi (one who knows two languages) and Chief Commercial Agent (1746). This enabled him to emerge as a man of substantial political influence at Pondicheriy.

The Battle of Ambur (1749)
Muzaffar Jung, the contender for Nizami of Hyderabad, and Chanda Sahib, a claimant to the Nawab of Carnatic, with the help of the disciplined French infantry inflicted huge casualties on the Nizam and Anwar-ud-din's forces. Anwar-ud-din was killed. Chanda Sahib entered Arcot as the Nawab. Muhammad Ali, son of Anwar-ud-din, escaped to Tiruchirappalli.

• Denmark and Norway (together till 1813) possessed colonial settlements in India and Tamil Nadu.
• Tarangambadi or Tranquebar in Tamil Nadu, Serampore in West Bengal and Nicobar Islands were their possessions in India. On March 17, 1616 the King of Denmark, Christian IV, issued a charter and created a Danish East India Company.
• This Company did not get any positive response from the Danish traders. Admiral Ove Gjedde led the first expedition to Ceylon in 1618. The Danes could not get any trade contract in Ceylon.
• While they were returning in disappointment their main vessel was sunk by the Portuguese at Karaikkal. Thirteen stranded sailors with their trade director Robert Crappe were taken to the Nayak ruler of Thanjavur.
• Robert Crappe ably negotiated with the Thanjavur King and struck an agreement. According to the agreement signed on 20 November 1620, the Danes received the village ofTarangambadi or Tranquebar and the right to construct a Fort there.

• Dupleix, French governor, had conceived the possibility of using the power of guns to gain support within the country itself.
• Dupleix was a man of remarkable energy and diplomatic skills with a piercing vision into the realities of local politics, though hampered by lack of military knowledge and by a nervous sensibility which made it difficult for him to work with colleagues. 
• It happened that at this moment a breakdown occurred in the authority of the Nizam of whose dominions the Carnatic with its European settlements formed a part.
• This provided the opportunity for the second phase of the struggle, which may be termed Dupleix's private war.
• In 1748 the old Nizam, a contemporary of Aurangzeb, died and there was also rivalry for the governorship of the Carnatic.
• French help secured the defeat of the new Nizam's nominee so easily that Dupleix was tempted to go further. On the murder of the new Nizam he was able to place his own nominee on the Hyderabad throne supported by a body of French troops under officer de Bussy .
• The object of all this was to squeeze Madras by surrounding it with hostile territory. As the plan developed the English Company propped up Muhammad Ali, the son of the governor defeated in 1749.
• He held out in the rock fortress of Trichinopoly and he became a key factor in the struggle between the two companies. But Robert Clive, a British general, seized Arcot in 1751 with 210 men.
• This led to the reversal of fortune, French forces surrendered at Trichinopoly and soon their candidate for the Nizam's chair, Chanda Sahib, also died. Dupliex was soon recalled.
• The final phase was again an open struggle brought on by the Seven Years War. The English were first in the field but their force was diverted to Bengal.
• When the French forces arrived in 1758 they were crippled by jealousies and bad leadership. They failed to take Madras and were decisively defeated at Wandiwash in 1760, where de Bussy was taken prisoner.
• Brave to the last de Bussy endured an agonizing siege in Pondicherry for eight months until its fall. This was the real end of the French bid for Indian power.
• They reappeared in 1782 but it was just a passing phase only made notable by the genius of their admiral de Suffren

Battle of Buxar (1764)
• After fleeing from Bengal Mir Qasim aligned with the Mughal Emperor Shah Alam II and the Nawab of Oudh, Shuja-ud-daulah, who were equally aggrieved by the interference of the Company in their internal affairs.
• They declared war against the British.
• The battle was fought at Buxar (1764).
• By virtue of its superior armed the Company forces won the battle.
• The victory of the British led to the signing of the Treaty of Allahabad (1765) by Robert Clive with Shah Alam II.
• By this treaty the Company got the Diwani right to collect land revenue from the princely states of Bengal, Bihar and Orissa.
• Besides, the Company obtained three districts, Burdwan, Chifiagong and Midnapur, in Bengal and sovereignty over Calcutta. British virtually became the rulers of Bengal.