● The Carnatic wars were fought to decide the rivalry between the English and the French and were directly connected with their rivalry in Europe. Hence statement 1 is not correct. ◦ The War of the Austrian Succession broke out in Europe in 1740. ◦ In this war, Britain and France joined opposite camps. ◦ As a result the English and the French Companies also became engulfed in the war. ◦ Thus the First Carnatic War was started. ● The policy of paramountcy was designed to make all Indian states accept the suzerainty of the British . Hence statement 2 is not correct. ◦ The Company claimed that its authority was paramount or supreme; hence its power was greater than that of Indian states. ◦ In order to protect its interests, it was justified in annexing or threatening to annex any Indian kingdom.