The European trading companies enter India with the aim of earning profit. India provides wide range of product for them to trade in other countries. These are the reasons why they enter India in for trade:

● There was a great demand of Indian goods in European countries such as cotton and silk.

● Indian spices like Pepper, cloves, cardamom and cinnamon were also in great demand.

● These things/goods could be purchased at low prices in India and could be sold at very high prices in other countries. Hence, European trading companies came to India to gain profits.