The French were late entrants to Indian trade through the sea route. The French East India Company was established in 1664. The French established their factories at Surat, Pondicherry, Chandernagore, Yanam, Mahe, and Karaikal. Pondicherry became the main administrative centre of French possessions in India.

In the Carnatic region, the French and the English fought for supremacy. The Carnatic was originally under the Mughal Empire, but after the decline of Mughal authority, the Nawabs of Carnatic ruled almost independently.
In 1746, the French attacked Madras, an English settlement, and captured it. Anwaruddin Khan was the Nawab of Carnatic at that time. He claimed sovereignty over Madras and attacked the French, but his forces were defeated in the Battle of Adyar under the able leadership of Dupleix. This conflict is known as the First Carnatic War (1746–1748). Although the French won militarily, they had to return Madras to the English under the Treaty of Aix-la-Chapelle (1748).
Carnatic later faced a succession dispute. Anwaruddin was the Nawab, but Chanda Sahib also claimed the throne. The English supported Anwaruddin, while the French supported Chanda Sahib. Anwaruddin was killed in the Battle of Ambur (1749). Thereafter, the British supported his son Muhammad Ali. In 1751, the English attacked Arcot, the capital of Carnatic, under the leadership of Robert Clive, and installed their favourable Nawab. This conflict is known as the Second Carnatic War (1749–1754). After this, Dupleix was recalled to France.
After the Battle of Plassey (1757), the English expanded their influence further. The decisive conflict occurred in the Battle of Wandiwash (1760), where the French were defeated, and Pondicherry was captured. This is known as the Third Carnatic War (1756–1763).
By the Treaty of Paris (1763), the French were allowed to retain their settlements only as commercial centres. They were prohibited from maintaining an army or fortifications. Thus, the French were eliminated from the competition for political power in India, and British supremacy was established.

