Foreign Trade and the European Traders. Ports and Trade. Advent of Europeans. European Trading Companies. English and Dutch Ventures. Impact of Foreign Trade.
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Foreign Trade and the European Traders
Ports and Trade
India had numerous ports and towns engaging in brisk trade with the outer world.
India supplied foodstuffs such as sugar and rice to Southeast and West Asia, and Indian textiles were significant in the trade of the region.
Despite competition from Egypt and Ottoman Turkey, India was considered the virtual manufactory of the Asian world.
India needed to import certain metals, specific spices, war horses, and luxury items. The favorable balance of trade was met by the import of gold and silver.
Advent of Europeans
The Portuguese arrived in India towards the end of the fifteenth century. During the seventeenth century, the Dutch, English, and French came for trade.
The Portuguese power began to decline in the second half of the sixteenth century, with the Dutch establishing themselves at Masulipatam and in the Spice Islands by 1610.
The English established a factory at Surat in 1612 after defeating a Portuguese fleet, confirmed by a farman from Jahangir in 1618. The Dutch also set up a factory at Surat.
European Trading Companies
Despite their domination of the seas, Europeans could not oust Indian traders from the Asian trade.
Indian traders knew both domestic and foreign markets better and worked at lower profits, while Europeans faced higher costs.
To reduce operational costs, European trading companies started freighting goods of Indian merchants on their ships.
English and Dutch Ventures
The English and Dutch explored new markets and articles for export from India to Europe, including textiles, indigo, and saltpetre.
English factories were set up at Hoogly and Balasore in Orissa, exporting raw silk, sugar, and textiles.
By the end of the seventeenth century, exports from Bengal and Orissa equaled those from the Coromandel coast.
Impact of Foreign Trade
The growth of India's foreign trade led to the influx of gold and silver, linking India more closely with European markets.
The price rise during the first half of the seventeenth century weakened traditional village ties and made the nobility more money-minded.
European nations tried to monopolize spice trade and capture Indian textile trade, ultimately leading to the conquest of territories in India.
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