Importance
This relatively small naval battle is historically important as it marked the beginning of the end of Portugal's commercial monopoly over India, and the beginning of the ascent of the English East India Company's presence in India.
This battle also convinced the English East India Company to establish a small navy to safeguard their commercial interests from other European powers and also from pirates. This small beginning is regarded as the root of the modern Indian Navy.
The background to this battle also points to the main reason for the Dutch Vereenigde Oostindische Compagnie being organised in 1602.
Read more about this topic: Battle Of Swally
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