The peace between the French and the English in India proved to be short lived. In 1756 there broke out Seven Years War in Europe and before long the two nations began to fight in India also.
The French govt sent a powerful army under the command of Count de Lally to fight the British in India. He captured Fort St George and decided to attack Madras. But he failed in his attempt. He was forced to retire to Pondicherry and was defeated by Sir Eyre Coote in the battle of Wandiwash in 1760.This battle sealed the fate of the French.Bussy was taken prisoner.Mahi and Jinji were lost by the French in quick succession. The French lost all their possessions in India. The war ended in 1763 with the signing of the Treaty of Paris.
The third Anglo-French conflict proved to be decisive. The French factories in India were restored but they could no longer be fortified or even garrisoned with troops. They could serve only as centres of trade and now the French lived in India under British protection. The English ruled the Indian sea. Freed of all European rivals they could now set about the task of conquering India.