Question

why did india ruler encourage foreign companies to trade on their soils
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Answer 1

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Indian rulers encouraged foreign companies to trade in their kingdoms because of the following reasons...

• Trading brought into India a variety of goods that were not locally available. For example, Arab traders used to supply high quality horses that were not available in India.

• Indian rulers could obtain revenue by imposing taxes on the foreign traders. This way, they could increase the wealth available in their treasuries.

• Indian rulers also hoped to use the soldiers and armies that accompanied the foreign traders to settle local disputes with other neighbouring kingdoms.

Answer 2

above answer is correct