The Dutch emerged as major European traders in India between the 16th and 18th centuries, driven primarily by their desire to access the lucrative spice markets of South-East Asia. To achieve this goal, the Dutch undertook several voyages from 1596 and, in 1602, established the Dutch East India Company, known as the Vereenigde Oost-Indische Compagnie (VOC). The VOC was granted exclusive trading rights and extensive military powers by the Dutch state, enabling it to wage war, make treaties, and establish settlements.

Initially, Dutch commercial interests focused on Sumatra, Java, and the Spice Islands. Their entry into India was motivated by the needs of the South-East Asian trade, as Indian cotton textiles were exchanged for spices such as pepper. Gujarat and the Coromandel Coast became crucial suppliers of these textiles, while indigo, saltpetre, and Bengal raw silk also emerged as significant exports.

In 1605, the Dutch established their first factory at Masulipatnam, followed by others at Pettapoli, Devanampatinam, and Pulicat. Pulicat, fortified as Fort Geldria, became the headquarters of Dutch operations in India in 1617. Later, Negapatnam (now Nagapattinam) replaced Pulicat as the administrative and strategic centre of the Coromandel Coast. On the western coast, Surat emerged as one of the most profitable Dutch directorates, with additional factories at Broach, Ahmedabad, Agra, and Burhanpur.

The Dutch also established important settlements at Chinsura, Cochin, and Kasimbazar, effectively displacing the Portuguese and dominating much of the spice trade during the 17th century. However, intense rivalry with the English weakened Dutch power. Their defeat at the Battle of Bedara in 1759 marked a turning point, and by 1795 the British had expelled the Dutch from most of their Indian possessions.