Fight for Colonial Powers between France and England

Frequent skirmishes between them took place for control of Colonial possessions. In 1742, fearing the monetary consequences of War, the British Government agreed to extend the deadline for the licensed exclusive trade by the company in India until 1783, in return for a further loan of 1 million pound.

Between 1756 and 1763, the Seven Years' War diverted the state's attention towards consolidation and defence of its territorial possessions in Europe and its colonies in north America. The war took place on Indian soil, between the company troops and the French forces. In 1757, the Law officers of the Crown delivered the Pratt-Yorke opinion distinguishing overseas territories acquired by right of conquest from those acquired by private treaty. The opinion asserted that, while the Crown of Great Britain enjoyed sovereign power over both, only the property of the former was vested in the Crownty.
With the advent of the Industrial Revolution, Britain surged ahead of its European rivals.