Why did the East India Company …

East India Company started its first factory in West Bengal, on the banks of the River Hugli, in 1651. As trade developed, the Company asked local merchants, who acted as middlemen for them, to come and settle near the factory. ... Thus they entered the political scene in India. They also used astute policies such as the doctrine of lapse, and Subsidiary Alliances to enhance their power.  As the princely states were bribed and paid by the British, they too joined hands with them and chose to be English slaves. India was a densely populated country. India had roughly 25% of global population. Indian resources were already under pressure due to huge population and it didn't made much sense for British to settle in a very large number. British were more interested in looting India and taking money back.