English pirates operating from American colonies targeted Indian Ocean trade while the East India Company depended on Mughal permission to trade. Henry Every's seizure of the Mughal emperor's ship in 1695 forced the Company to undertake escorts for Mughal shipping to recover its privileges. William Kidd's later capture of an Indian merchant ship deepened the crisis. Colonial officials and political interests had helped shelter piracy, while the Dutch VOC encouraged Mughal suspicion of English traders. By 1701, piracy had endangered the Company's position and become an embarrassment to its political supporters.
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How piracy endangered English trade with the Mughal Empire
Indian Ocean piracy exposed the East India Company to Mughal retaliation and forced it to protect shipping attacked by other Englishmen.