Agricultural India was to be made an economic colony of industrial England. The Government of India now followed a policy of free trade or unrestricted entry of British goods. Indian handicrafts were exposed to the fierce and unequal competition of the machine-made products of Britain and faced extinction.

From 1600 to 1757 The East India Company's Role in India was that of a trading Corporation Which brought goods or Precious metal into India and exchange term for Indian Goods like Textiles and Spices, Which it sold abroad naturally, it tried constantly to open New markets . For Indian goods in Britain and other Countries there  by, it in. increased the export of indian manufacturing and the encourage their production.