Internal and External Trade

Internal and External Trade India witnessed huge growth in trade and commerce during the Mughal period. During the two hundred years of Mughal rule from 16th to 18th centuries, the era witnessed the establishment of a stable centre and a uniform provincial government. During this age of relative peace and security, trade and commerce flourished. The growing foreign trade led to the development of market places not only in the towns but also in the villages. Internal Trade By the Mughal period, inland trade had developed considerably. Internal trade constituted a small fraction as it provided employment to very few percentage of the total population and generated much less income in proportion to agricultural economy. Internal trade in the 16th century did witness substantial changes both in terms of commodities of exchange as well as growth of markets. The flow of commodities was mostly from rural to urban areas, from the villages to the towns. There was abundance of food in rural areas. Despite being self-sufficient, rural economy did develop a rudimentary form of market system. There was elaborate system of exchange that had developed at the village levels. Every locality had regular markets in nearby towns where people from the surrounding areas could sell and purchase things. Trade at the local level was also conducted through periodic markets known as Haats or Penths, which were held on fixed days in a week. In these local markets, commodities like food grain, salt, wooden and iron equipments, coarse cotton textile, etc. were available. These local markets were linked to bigger commercial centres in that region. These centres served as markets for products not only from their specific region but also from other regions. Delhi, Agra, Lahore, Multan, Bijapur, Hyderabad, Calicut, Cochin, Patna etc. were some of such trading regions during the Mughal period. Trade at the urban level was more complex. The Mughals during their town planning always developed a great bazaar along with succession of other types of bazaars selling commodities from external trade and making urban markets catering to the requirements and demands of wider section of the Mughal society. An outcome of this process was the development of trade links between different regions of the country. Both urban and rural trade was carried out through waterways that included both inland and coastal trade as it was inexpensive. Land as well as coastal linkages was established. Through a network of land and river routes, commodities from one region were carried to another. In the coastal regions, this was done through the sea route, and it was quite well developed in the west coast. A major feature of the inter-local trade was the predominantly one-way flow of commodities from the villages to towns, a corollary of rural self-sufficiency. The inter-local trade — both the country to town and inter-town flow of commodities — was essentially a short-distance version of the interregional trade. The villages around a town are often described as being dependent on the latter, implying primarily an administrative relationship; the economic ties between town and country were no less strong. The collection of revenue in cash generated a pressure to sell; the towns, providing the necessary demand, were dependent on the villages for the supply of not only primary products but most of the manufactured goods they consumed. A striking feature of the inter-local trade was the extreme responsiveness of food supply to market demand. A brisk inter-regional trade was conducted in food grains, raw materials, luxury commodities. Coromandel Coast dealt in its own produce and imported luxuries items that were traded with west coast, Gujarat, Deccan and Burhanpur. Bengal raw silk was sent to Gujarat silk industries while in return Bengal imported cotton grown between Surat and Burhanpur From Rajasthan along with precious stones, white and pink marble were exported. Tobacco produced in Burhanpur was sold all over Kashmir specialized in luxurious commodities like shawls, carpets, and saffron. Gwalior was famous for jasmine oil Malabar traded in pepper, ginger, cardamom, and cinnamon which were brought spices to be sold in Coromandel, Konkan Coast and Gujarat. Water being the most inexpensive form of transporting goods was used extensively during the Mughal period. In northern India, the river Ganges linked Allahabad to Rajmahal via Benaras and Patna. In the north-west, the river Indus became a major hub between Lahore and the mouth of the river. Land transport was the second most preferred avenue of transporting commodities. Some of the important land routes were from Agra to Patna; Benaras to Patna; Bengal to Balasore upto Patna; and Surat was linked with Agra then Rajasthan from there to Ahmadabad, Cambay and Broach and Malwa was linked with Khandesh. The use of water and land routes is indicative of growth of integrated market network system assisting in flow of commodities north-south and east-west. The common mode of transport were packed-oxen and ox drawn carts along with camels as most of the horses were used in the army or for maintaining commercial linkages or used by rich merchants and the ruling classes. Elephants and mules were used for land transport and for water boats and ships were used during the Mughal times. According to Tapan Raychaudhari, there were 4 types of markets in the Mughal Empire: The markets for long distance trade that had many regional variations – inland, overland and overseas Small bazaars where products were procured locally and sold for local consumption Periodic fairs held both for common consumers and specialized commodity traders Isolated rural markets External Trade For centuries, India has maintained trading relations with other countries. The pattern of trade and commodities underwent changes over the period. During the 16th and 17th centuries also India had a flourishing trade with many foreign countries. The significant aspect of foreign trade during this period is the coming of the Europeans. This increased India's foreign trade manifold. Most of this trade was in the form of exports of Indian goods whereas the imports were very small. According to Ashin Dasgupta, significant changes was witnessed in the 16th century trade patterns in India due to the emergence of Portuguese as well as the three great continental empires in the Western Indian Ocean – the Mughals, the Safavids, and the Ottomans. According to K. N. Chaudhari, the Portuguese entry into Indian Ocean was for ‘Christians and species’. By the 16th century, the Portuguese had evolved a carefully crafted policy that gradually attempted to bring spice trade under their control particularly in the region of Red Sea and the western coast of India. They had naval superiority over Asian ships. They planned to construct forts along strategic locations to station their naval fleets and forces to control and monopolize the trading activities on Indian Ocean. Textiles, saltpetre and indigo formed the major share of Indian exports. Other important items were sugar, opium spices and other sundry commodities. Before the coming of the Europeans, the main purchasers of Indian cotton textiles were the Mughals, Khorasanis, Iraqis and Armenians who carried them to Central Asia, Persia and Turkey. These goods purchased from all parts of India were taken by land route via Lahore. The main varieties of cotton fabrics were baftas, Samanis, Calico, Khairabadi and Dariabadi, Amberty and Qaimkhani and muslin and other cotton cloths. Chintz or printed cotton textiles were the most favourite items of export. Carpets from Gujarat, Jaunpur and Bengal were also bought. Saltpetre, one of the important ingredients for making gunpowder was much in demand in Europe. There are no references to its export in the 16th century. In the 17th century, the Dutch started exporting it from Coromandal and soon the English also followed. During the first half of 17th century, the Dutch and the English were exporting moderate quantities from Coromandal, Gujarat and Agra. In the second half of the 17th century, its trade from Bihar via Orissa and Bengal ports started. Indigo for blue dye was produced in most of northern India - Punjab, Sind and Gujarat. The indigo from Sarkhej (Gujarat) and Bayana (near Agra) was much in demand for exports. Prior to its supply to Europe, large quantities of this commodity were exported to the Persian Gulf from Gujarat and to Aleppo markets from Lahore. The Portuguese started its export around the last quarter of the 16th century. Europe's demand was very large for dyeing woollen cloths. The Dutch and English started exporting it in the 17th century. Besides, merchants from Persia purchased it for Asiatic markets and Eastern Europe. The Armenians were also buying substantial quantities. In the 17th century, the Dutch, English, Persians, Mughals, and Armenians competed to procure the commodity. As compared to exports from India, the imports were limited to only a few select commodities. Silver was the main item of import as it was brought to finance the purchases of European Companies and other merchants from different parts of Europe and Asia. Copper, too, was imported in some quantity. Lead and mercury were other important commodities brought to India. Silk and porcelain from China were imported into India by the English. Good quality wine, carpets and perfumes were brought from Persia. Some items like cut glass, watches, silver utensils, woollen cloths and small weapons from Europe were in demand by the aristocracy in India. Horses from Central Asia were imported in large number for military uses. The state was the main purchaser. Besides, India had trade relations with its immediate neighbours in the hill kingdoms. Musk was brought from Nepal and Bhutan to India where it was bought by the Europeans. Borax was also imported from Tibet and Nepal. Iron and food grains were supplied in return to these hill regions. According to Om Prakash, the imported coins and precious metals represented how a chronically favourable balance of trade for India was settled. Thus, India had always enjoyed a favourable balance in her trade relations with other countries. Foreign and Indian merchants traded through, both, the overland and overseas routes. The most frequented overland route during the medieval period was the one connected with the 'great silk route'. The 'great silk route' beginning from Beijing passed through Central Asia via Kashighar, Samarqand and Balkh and Kabul. Indian hinterlands related to this great route at Lahore. It passed through Multan, Qandahar, Baghdad, and after crossing the Euphrates it reached Aleppo. From there, the commodities were taken to Europe abroad ships. The overseas routes on both the Arabian Sea and the Bay of Bengal were well frequented. Before the discovery of the sea route via the Cape of Good Hope, the most frequented sea routes in the north were: From Cambay, Surat, Thatta to the Persian Gulf and Red Sea; From other parts like Dabhor, Cochin and Calicut to Aden and Mocha. Conclusion Thus, 16th century witnessed the growth and development of internal commerce which in the long run assisted in the expansion of the foreign trade and commerce. At the local and regional level the commercial or trading transactions were confined to food grains, coarse cloth, salt, equipments of daily use and some other commodities. Small town markets also played a role. In inland trade, the flow of commodities was mainly from the village to towns. Different regions of India had developed trade links. Commodities from one region to another were carried through a network of land and river routes. The foreign trade balance was favourable to India. Large scale export of Indian goods was carried to various parts of Asia and Europe. The main articles of export were textiles, indigo, saltpetre, sugar, etc. The coming of English and Dutch gave an impetus to foreign trade especially indigo and saltpetre. Imports to India were limited. The main articles of import were silver, woollen cloth and various luxury items. age 17 of 17