Answer:
(a) Establishment of colonies: Vasco da Gama reached Calicut in 1498. The Portuguese set up factories at Calicut, Cochin and Cannanore. Francisco de Almeida, the first Viceroy, followed the ‘Blue Water Policy’ of controlling the sea. Alfonso de Albuquerque captured Goa from the Adilshah of Bijapur in 1510 and made it the centre of Portuguese power. Later they acquired Daman, Diu, Vasai, Chaul and Hooghly.
(b) Administration: The Portuguese territories were ruled by a Viceroy appointed by the King of Portugal, with Goa as capital. A council helped him. They controlled sea trade through the cartaz (permit) system, built forts and a strong navy, and encouraged Portuguese men to marry local women to create a loyal population. Local village administration was largely continued.
(c) Policies of religious intolerance: The Portuguese followed a harsh religious policy. Temples were destroyed, conversions to Christianity were encouraged by force and by offering jobs, and the Inquisition (1560) punished people for following their own faith. This made them unpopular among Indians and was one reason for their decline.