Why states granted East India monopolies

A monopoly offered private investors a chance to profit from hazardous global commerce while shifting much of its expense away from the state. It compensated them for the cost and risk of long-distance voyages. A brief comparison with railway monopolies questions how much risk private operators really assume when the state bears infrastructure costs. The English East India Company grew into a territorial and military power far beyond its original trading purpose. Its financial benefits to Britain came with severe consequences for people under company rule and repeated demands for government support. The eventual breakup of monopolies and a more peaceful trading environment helped change the role of the heavily armed East Indiaman.