Read the source given below and answer the questions that follow:

The European companies gradually gained power first by securing a variety of concessions from local courts, then the monopoly rights to trade. This resulted in a decline of the old ports of Surat and Hooghly through which local merchants had operated. Exports from these ports fell dramatically, the credit that had financed the earlier trade began drying up, and the local bankers slowly went bankrupt. In the last years of the seventeenth century, the gross value of trade that passed through Surat had been ₹ 16 million. By the 1740s it had slumped to ₹ 3 million.

[[1]] slowly went bankrupt.

Question

Read the source given below and answer the questions that follow:

The European companies gradually gained power first by securing a variety of concessions from local courts, then the monopoly rights to trade. This resulted in a decline of the old ports of Surat and Hooghly through which local merchants had operated. Exports from these ports fell dramatically, the credit that had financed the earlier trade began drying up, and the local bankers slowly went bankrupt. In the last years of the seventeenth century, the gross value of trade that passed through Surat had been ₹ 16 million. By the 1740s it had slumped to ₹ 3 million.

[[1]] slowly went bankrupt.

Accepted Answer

The Local Bankers slowly went bankrupt. The Local Bankers became bankrupt because the European Companies gained concessions from Local Courts. The reason behind the bankruptcy of local bankers and the decline of these ports were the European companies that gained the concessions from the Local courts and also they were the first to gain a monopoly for rights in trade. The freedom and extra rights of the European companies forced the old ports to decline as they started suffering losses and the bankers were turning bankrupt. In previous years, Surat and Hooghly ports were gaining huge profits but after the entry of European companies with monopoly powers, they suffered drastic losses.

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