The Danes and Other European Companies in India
Modern History › Advent of the Europeans in India · Topic 2.11
The Danish East India Company, founded in 1616, set up a factory at Tranquebar in 1620 and a main settlement at Serampore. The Danes sold their Indian possessions to the British in 1845. All the European companies came for Indian textiles and spices.
6 min read · UPSC Prelims · History · Advent of the Europeans
At a Glance
- What it is The Danes in India and the trade that brought every European company to India
- Danish company Founded 1616; Tranquebar factory, 1620; Serampore
- End Danish factories sold to the British in 1845
- Main goods Cotton cloth, silk, dyes and spices
- Exam link UPSC Prelims, Modern History: Advent of the Europeans
Where Does It Fit?
This is the eleventh topic of the category on the advent of the Europeans. The previous topics covered the Portuguese, Dutch, English and French. This topic covers the Danes and also the goods and networks that drew every company to India. The next topics explain why the English succeeded and how the companies differed. Previous topic: clive-and-the-anglo-french-struggle-a-comparison/" class="maargx-auto-link" data-preview="At a Glance What it is A profile of Dupleix and a comparison of why the English succeeded and the French failed…">Dupleix, Clive and the Anglo-French Struggle: A Comparison.
Who Were the Danes in India?
The Danish East India Company was established in 1616. In 1620 it founded a factory at Tranquebar near Tanjore on the eastern coast of India. Its principal settlement was at Serampore near Calcutta.
The Danish factories were never important. They were sold to the British government in 1845. The Danes are better known for their missionary activities than for commerce.
In What Order Did the European Powers Come?
The Portuguese were the pioneers, followed by the Dutch, the English, the Danes and the French, in that order, to reach India. The Danes were thus the smallest of the five powers.
| Power | Company or key date | Main Indian centres |
|---|---|---|
| Portuguese | 1498, Vasco da Gama at Calicut | Goa, Cochin, Cannanore, Daman, Diu |
| Dutch | 1602 company; first factory 1605 | Masulipatnam, Pulicat, Nagapatam, Chinsura |
| English | 1600 charter | Surat, Masulipatnam, Madras, Bombay, Calcutta |
| Danes | 1616 company; Tranquebar 1620 | Tranquebar, Serampore |
| French | 1664 company | Pondicherry, Chandernagore, Mahe, Karaikal |
What Goods Did Europeans Buy in India?
Textiles were the great draw. European travellers and traders have left accounts of the activity in port towns such as Surat, with details of the many steps that went into making the fabrics collectively called Indian. There was great demand for cotton longcloth (usually 35 to 50 metres long), salempores (a staple cotton cloth) and morees (a superior cotton cloth). Painted cloths and prints, silks and dyes were also much sought after.
These textiles were in demand not only in Europe but also in other parts of Asia. Indians had traded in textiles for centuries before the Europeans came. Indian cotton was popular in China, Japan and the Indonesian archipelago for being light but strong. When the Dutch, English and French took goods from India, it was not only for their home countries but also to carry to places like Malacca or Java and trade for spices. By the eighteenth century the French had coloured, patterned handkerchiefs woven specially for island markets, which proved a successful venture.
How Was Indian Trade Linked to the Slave Trade?
A corollary to the trade in textiles and spices was the slave trade. It is generally thought of as a link between Europe, Africa and the Americas, but this ignores the fact that trade between Europe and Asia also helped to sustain slavery.
French ships took European goods to Asia, where they obtained cowry shells and Indian textiles that were highly valued in West Africa. These goods were exchanged in Africa for slaves, who were sent to the colonies of France in the Americas. The circle was completed when sugar and other goods from the Americas were loaded and shipped back to France.
Who Ran the Trade Inside India?
When the French East India Company started trading in India, it entered a well-established, complex economic system, an intricate network of production, negotiation, delivery and distribution. Large commercial fleets and prosperous shore-based businesses were run by Indian merchants. Weavers and merchants worked with overland freight operators and brokers, who worked with exporters and ship-owners. These agents also had to deal with local state officials for commercial privileges. The European traders had to learn the rules and practices and cooperate with local envoys.
The factories of all the European groups were found in practically the same places. At the peak of the Indian trade, the demand for Indian goods exceeded the supply by weavers and artisans, so there was no serious rivalry at first.
How Did Trade Turn Into Political Power?
As the three companies, the Dutch, the English and the French, grew more competitive, the English, better funded and better versed in local business practices and customs, expanded their factory outposts to bigger industrial towns under their jurisdiction. Gradually these commercial strongholds turned into political enclaves, which ultimately let the English expand and consolidate their power and control over all of India.
Why Is This Topic Important?
- Understands the pull The textile trade explains why every European power came to India
- Direct facts Danish dates and settlements, and the 1845 sale, are standard Prelims items
- Link to economic history The pattern of trade turning into political control repeats in later topics on Bengal
What Came Next?
The next topic explains in detail why the English succeeded against the other European powers. Next topic: Why the English Succeeded Against Other European Powers.
Key People and Terms
- Tranquebar The Danish factory of 1620 near Tanjore on the eastern coast
- Serampore The principal Danish settlement near Calcutta
- Salempores A staple cotton cloth
- Morees A superior quality cotton cloth
- Cowry shells Shells used as goods valued in West Africa
- Longcloth Cotton cloth usually 35 to 50 metres long
Exam Corner
Points to Remember
- Danish company founded in 1616; Tranquebar factory in 1620; main settlement Serampore.
- The Danes sold their factories to the British in 1845.
- Order of arrival: Portuguese, Dutch, English, Danes, French.
- Textile names: longcloth, salempores, morees.
- Indian merchants ran large fleets; Europeans fitted into an existing trade network.
Do Not Confuse With
- Tranquebar and Serampore Tranquebar was near Tanjore in the south-east; Serampore was near Calcutta
- Danish company and Danish missionaries The Danes are better known for missionary activity than for commerce
- Order of arrival and order of success The French came last of the five but were the main English rival
Memory Hook
Danes at Tranquebar and Serampore, cloth everywhere.
Mains Angle
Questions ask about the nature of early European trade. These points add depth.
- Existing network Europeans entered an Indian trade system run by Indian merchants and weavers
- Textile demand Indian cloth was in demand in Europe, Africa and Asia
- From trade to power Better funding and knowledge of local custom let the English turn factories into enclaves
A Question You May Face
An original practice question, not a past paper question.
“How did the early European trade in India lead to political control?”
How to Answer
- Describe the trade Textiles, spices and Indian merchant networks.
- Describe competition Companies met in the same places as demand rose.
- Show the shift English funding and local knowledge turned strongholds into enclaves.
- Conclude Say that commerce prepared the ground for rule.
GS Relevance
Frequently Asked Questions
When did the Danes come to India?
The Danish East India Company was established in 1616, and in 1620 the Danes founded a factory at Tranquebar near Tanjore on the eastern coast of India. Their principal settlement was at Serampore near Calcutta, but their factories were never important.
When did the Danes leave India?
The Danes left India in 1845, when their factories at Tranquebar and Serampore were sold to the British government. The Danish records relating to Tranquebar for 1777 to 1845 are now kept in the Madras Record Office.
Why are the Danes known in Indian history?
The Danes are better known in Indian history for their missionary activities than for commerce. Their settlements at Tranquebar and Serampore were small trading posts, and the Danish factories were never important in the struggle among the European powers.
What Indian goods did Europeans buy?
Europeans bought Indian cotton longcloth, salempores, morees, painted cloths and prints, silks and dyes. These textiles were in demand in Europe and also in Asia, where they were traded at Malacca and Java for spices.
How were Indian textiles connected to the slave trade?
French ships took European goods to Asia and brought back cowry shells and Indian textiles, which were valued in West Africa. They were exchanged there for slaves who were sent to French colonies in the Americas, so Asian trade helped to sustain the slave trade.
Why did the English gain over other companies in trade?
As the Dutch, English and French companies grew more competitive, the English, who were better funded and knew local business practices better, expanded their factory outposts to larger industrial towns under their jurisdiction. Over time these strongholds turned into political enclaves.
PYQ Practice — Statement Analysis
1 The Danish East India Company was established in 1616.
It founded a factory at Tranquebar in 1620.
2 The Danish possessions in India were sold to the French in 1845.
They were sold to the British government.
3 The principal Danish settlement in India was at Serampore near Calcutta.
Tranquebar near Tanjore was the other major factory.
4 The Danes are better known for commerce than for missionary activity in India.
They are better known for missionary activity.
5 Indian textiles were in demand only in Europe.
They were also in demand in China, Japan and Indonesia and traded at Malacca and Java.
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