how did company purchased goods in India before 1865
Answers
The British East India Company purchased goods in India before 1865 by importing gold and silver from the Britain.
The British East India Company before 1865 used to saw itself as a trader and thus used to import gold and silver from Britain to purchase Indian goods. But after 1865, the Company increased its revenue to such an extent that it began to purchase Indian goods from Indian revenues.
Purchase of goods by the company before 1865:
The company wanted a high income, but it was not able to set up any regular evaluation and collection system.
By increasing revenues of the country as possible and to buy as much as possible fine cotton and silk cloth for minimum prices. Actually, during that time economical value of goods purchased by the Company in Bengal became double within a short period of five to six years.
Before, 1865 the company use to buy cotton and other goods in exchange of gold and silver. The income from Bengal could be due to the purchase of goods from exports.