• 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).

• The other Dutch colonial forts and possessions include Nagapattinam, Punnakayal, Porto Novo; Cuddalore (Tiruppathiripuliyur) and Devanampatinam.

• The cartaz system, the Portuguese exacted money from the traders as the price for protection against what they termed as piracy.
• But much of this was caused by Portuguese freebooters themselves and so the whole system was a blatant protection racket