Policles's actions advance the story's plot by pretending something that he is not. His intentions are to cause trouble between the two tribes and does this by tricking the two tribes that there is a conflict between them. The theme of the story revolves around factions and race.
European traders were attracted towards India because of the spices grown in tropical climates - pepper, cinnamon, nutmeg, dried ginger etc. These spices had become an important part of European cooking. Also, they found the cotton cloth very attractive.
It's John Law's attempt to populate the colony of Louisana known as the Mississippi