India had a trade relation with different European countries from ancient times in the land and sea route. The Indian products had good markets in Europe. In the medieval period the Arabian traders procured Indian goods for the markets of the cities of Venice, Geneva etc of Europe. After the discovery of sea route to India round the Cape of Good Hope by Vasco-da-gama in 1498, the trade relations of Europe with India increased enormously.In due course Portuguese, Dutch, French, English and other powers of Europe came to India through this route and established trade relations. But it was only the English who overtook all other forces of Europe. The major struggle took place between French and English at Carnatak in south of India. There were three wars at Carnatak. Ultimately British overpowered French and took the lead.
The second war which the British had won over the local authority of Mughal empire and Siraj-ud-daullah at Palassey in 1757 undeer the leadership of Lord Clive. English fought another war at Bauxer ( 1764)against Mirkashem Nawab of Murshibad, Nawab of Ayodhya Suja-ud-daullah, and Mughal Samrat 2nd Shah Alam. British won over the battle and took the responsibility of revenue collection of Bengal, Bihar and Orissa against a revenue of 26 lakhs of Rupees a year (1765) to the then King of Delhi , 2nd Shah Alam.
In 1764, the soldiers revolted against the British authority for the first time at Patna but all the leaders had to face death by court marshall.
Clive was appointed as governor of bengal for the 2nd time and was called as Lord Clive. A committee was formed with four persons 1. general Karnak, 2. Mr. verelst, 3. Mr.Samnar and Mr. Sykes.
Mughal Samrat offered all the responsibilty of collection of revenue, army and administrative power to East India Company. Clive introduced judicial power of Bengal, Bihar and Orissa administered all powers of revenue, army and judicial power over 2 and 1/2 crpres of people. The East India Company got yearly revenue of 4 crores of Rupees.
Clive also stopped double dearness allowance to all the official employees. At this the Bengal officers revolted and submitted resignation letter. Clive accepted the resignation letter and ordered court marshall to all of them.
Clive also controlled the domestic business of Salt and Jayfall by organising a society for the traders. After two years the board of Administration in England formed a permanent Committee replacing the previous society.
Clive submitted resignation for illness and died a suicidal death at 1774.