Choose whether the given statement is true/false:

The East India Company's choice to establish with the hinterland tribes was the primary factor in Masulipatnam's decline.

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True

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Detailed Solution

The above statement is true.
The East India Company's choice to establish ties with the hinterland tribes was the primary factor in Masulipatnam's decline. The Princely States, notably Madras, Calcutta, and Bombay, became the new home for all traders in the 18th century. It was believed that the new Company trading centres ought to mix commercial, administrative, and political responsibilities. Throughout the 18th century, when Company commerce relocated to Bombay, Calcutta, and Madras, Masulipatnam lost both its merchants and prosperity and fell into decay. loss of markets and production as a result of the demise of the Mughal Empire and Portuguese control over the maritime lanes. Masulipatnam was characterised by William Methwold, an official trader of the English East India Company, as a small but populated town that was unwalled, poorly constructed, and located, and all of the springs in the town were brackish.

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