The importance of trade and commerce in the development of a nation is second to none. It can also be emphasised that the evolution of a business in a country largely depends upon its geography and the surroundings.
India is blessed to have the Himalayas in the north and bordered by sea on the south. The presence of sea has helped in the spreading of business across the continents.
During the ancient times, India was the leading exporter of silk, cotton, sugar, precious stones. India was also the exporter of spices to the west and this was done through the spice route.
All these items were exported in exchange for gold and silver from other nations. The prosperity of Indian trade took a backseat with the starting of the Industrial Revolution in the west.
Trade and commerce played a significant role in the evolution of the economy of India. It was shown from the archaeological evidence that trade and commerce through land and sea played a very important role in the growth of the Indian economy.
India was the leading business center of the world and commercial towns like Harappa and Mohenjodaro were established. In ancient times, India had built strong business relations with other countries like Mesopotamia and trade took place between the two nations involving gold, silver, terracotta pots, precious stones, pearls, etc.
The following are some of the factors that helped India become the most favoured nation for trade and commerce:
1. The Hindu mercantile community was known for their entrepreneurship, enterprising nature, resilience and trustworthiness.
2. Goods manufactured in India were known for their excellence as the goods produced in India were unique and were not available in any other part of the world.
3.The Hindus were very skilled at the art of building ships along with excellent knowledge of the sea routes, winds and other aspects of navigation. This enabled them to travel distant lands to perform trade.
This concludes the topic of History of Trade and Commerce in India, which is an important topic for Commerce students. For more such interesting articles, stay tuned to BYJU’S.
FAQs
During the ancient times, India was the leading exporter of silk, cotton, sugar, precious stones. India was also the exporter of spices to the west and this was done through the spice route. All these items were exported in exchange for gold and silver from other nations.
What did India trade throughout their history? ›
For centuries India was the nexus of international trade by land and by sea. The valuable commodities exported from India included botanicals used as medicine, spices, dyes, unguents for rituals and worship and perfumes and cosmetics, as well as manufactured goods like dyed cottons and artificially colored stones.
Who started trade in India first? ›
Portugal was the first country to establish trade relations with India.
What is the importance of trade and commerce in India? ›
It promotes the growth of new industries, such as technology and textiles, and connects nations, people, and markets, enhancing the Indian economy and creating jobs.
What is the trade summary of India? ›
India Trade & Investment Summary
Exports were $73.0 billion; imports were $118.8 billion. The U.S. goods and services trade deficit with India was $45.7 billion in 2022. U.S. goods exports to India in 2022 were $47.2 billion, up 17.9 percent ($7.2 billion) from 2021 and up 113 percent from 2012.
How did the British East India Company come to control trade in India? ›
The company had initially planned to try and force their way into the lucrative spice markets of south-east Asia, but found this trade was already dominated by the Dutch. After EIC merchants were massacred at Amboyna (in present day Indonesia) in 1623, the company increasingly turned their attention to India.
What was the British company that came to India for trade? ›
The East India Company was incorporated by royal charter on December 31, 1600. It was an English company formed for the exploitation of trade with East and Southeast Asia and India.
What came from India and was sold to China by the British? ›
To rectify this trade imbalance, the East India Company and other British merchants began to import Indian opium into China illegally, demanding payment in silver. This was then used to buy tea and other goods. By 1839, opium sales to China paid for the entire British tea trade.
Why is trade important in Indian history? ›
Trade led to the increase in economic status of India. This also promoted the growth of Indian culture. One of the most famous trade routes of India was the Silk Route.
What is India's biggest trade? ›
United States: The United States is India's largest trading partner, with a total trade volume of over $71.39 billion in 2023. The US is a major source of imports for India, including crude oil, machinery, and chemicals. India's main exports to the US include pharmaceuticals, textiles, gems, and jewelry.
The Indian subcontinent was recognized as a commercial zone of vital importance in the ancient times as revealed through the evidence of early Indian trade since nearly three and a half millennium years ago.
Why was India the richest country in the world? ›
For the next 1500 years, India produced its classical civilizations which generated wealth in huge amount. Between 1st and 17th centuries AD, India is estimated to have had the largest economy of the ancient and medieval world, controlling between one third and one fourth of the world's wealth.
What was trade and commerce in ancient India? ›
Abstract. India has long been a trading nation, with precious goods such as spices, scents, valuable stones, jewellery, silks, muslins, and medicinal drugs etc. to offer the world since the Harppan era. The dockyard discovered in Lothal, Gujarat, gives unusually strong evidence of maritime commerce at the time.
Which foreign country came to India first? ›
The Portuguese were the first Europeans to arrive in India and the last to leave. In c. 1498 CE, Vasco da Gama of Portugal discovered a new sea route from Europe to India. He sailed around Africa via the Cape of Good Hope and reached Calicut.
What is the history of stock trading in India? ›
Trading of securities in India dates to the 18th century when the East India Company began trading in loan securities. 1830s: During this decade, corporate shares started being traded in Mumbai. Most notably, stocks of banks and cotton presses were traded during this time.
What is the brief history of trade union in India? ›
In India, the first trade union came up in Bombay, after the establishment of textile mills in the 1850s. Trade unions came up in Calcutta in 1854, with the establishment of Jute Mills. Sohrabji Shapuri Bengali and C.P. Mazumdar were the leaders and early pioneers of the labour unions uprising.
What is the history of trade fair in India? ›
The India International Trade Fair, ever since its inception in 1980, has evolved as a major event for the business community. It is a premier event organized by the India Trade Promotion Organization, the nodal trade promotion agency of the Government of India.
What was trade and commerce in ancient South India? ›
The exports from the Tamil country included pepper, pearls, ivory, textiles and gold ornaments, while the imports were luxury goods such as glass, coral, wine and topaz. The government provided the essential infrastructure such as good harbours, lighthouses, and warehouses to promote overseas trade.
