History of Trade and Commerce in Ancient India . p1 VIVA VVIT

Indian ancient history, the golden era, spice trade, spice road, silk road, Indigenous merchants, Swarna Bhoomi, Vijayanagara samrajyam, Hundi, Chitti, Bill of Exchange

1. for PLUS ONE Professor & Lawyer Puttu Guru Prasad Business Studies VIVA - VVIT History of Trade and Commerce

2. CONTENTS PART I FOUNDATIONS OF BUSINESS 1 CHAPTER 1 Nature and Purpose of Business 2 CHAPTER 2 Forms of Business Organisation 21 CHAPTER 3 Private, Public and Global Enterprises 55 CHAPTER 4 Business Services 77 CHAPTER 5 Emerging Modes of Business 110 CHAPTER 6 Social Responsibilities of Business and Business Ethics 140 PART II CORPORATE ORGANISATION, FINANCE AND TRADE 159 CHAPTER 7 Formation of a Company 160 CHAPTER 8 Sources of Business Finance 181 CHAPTER 9 Small Business 207 CHAPTER 10 Internal Trade 225 CHAPTER 11 International Business - I 251 CHAPTER 12 International Business - II 27

3. Professor & Lawyer.   Puttu Guru Prasad, B.Com., M.Com., M.Phil., M.B.A., PGDFTM., AP.SET., M.Phil., DRMS., L.L.B., ICFAI TMF., DIRM., L.L.M., Pre PhD (PhD)from JNTUK.,  “Diploma in Psychology from YALE University” MHRDI’s IIC Ambassador NSS Certified Program Officer, (A.U) Senior Faculty for M.S & M.E.F.A., BOS-Chairman, Management Studies, Bhagavad Gita Program Coordinator,  S&H Department, VVIT, Nambur ,  My Blog:  puttuguru.blogspot.in   My Web Site:  https://gurublogs.wixsite.com/guru 93 94 96 98 98 ,  9885 96 36 36, 807 444 9539,

4. VIVA INTERNATIONAL SCHOOL Welcomes you to XI Business Studies - c l a s s

5. BUSINESS, TRADE AND COMMERCE History of Trade and Commerce VIVA INTERNATIONAL SCHOOL, GUNTUR

6. Chapter – 1 LEARNING OBJECTIVES After studying this chapter, you should be able to: i . Appreciate the development of trade and commerce in historical past; ii. Understand the role of indigenous banking system in trade and commerce; iii. Explain the concept and objectives of business; iv. Discuss types of industries; v. Explain the activities relating to commerce; vi. Describe the nature of business risks and their causes; and vii. Discuss the basic factors to be considered while starting a business.

7. Introduction All human beings, wherever they may be, require different types of goods and services to satisfy their needs. The necessity of supplying goods and services has led to certain activities being undertaken by people to produce and sell what is needed by others. Business is a major economic activity in all modern societies concerned as it is concerned with the production and sale of goods and services required by people. The purpose behind most business activities is to earn money by meeting people’s demands for goods and services. Business is central to our lives.

8. History of Trade and Commerce The economic and commercial evolution of any land depends upon its physical environment. This stands true for the Indian subcontinent as a whole which has Himalayas in the North bordered by water in the South. A network of roads merging into the Silk Route helped in establishing commercial and political contacts with adjoining foreign kingdoms and empires of Asia, in particular, and the world, in general. The maritime routes linked the east and the west by sea and were used for the trade of spices and known as ‘spice route’. Due to the flow of wealth through these routes, the chief kingdoms, important trade centers and the industrial belt flourished, which in turn further facilitated the progress of domestic and international trade in ancient India. Trade and commerce have played a vital role in making India to evolve as a major actor in the economic world in ancient times. Archaeological evidences have shown that trade and commerce was the mainstay of the economy of ancient India carried out by water and land. Commercial cities like Harappa and Mohenjo-Daro were founded in the third millennium B.C. The civilization had established commercial connections with Mesopotamia and traded in gold, silver, copper, colored gemstones, beads, pearls, sea shells, terracotta pots, etc.

9. Indigenous Banking System As economic life progressed, metals began to supplement other commodities as money because of its durability and divisibility. As money served as a medium of exchange, the introduction of metallic money and its use accelerated economic activities. Documents such as ‘Hundi’ and ‘ Chitti ’ were in use for carrying out transactions in which money passed from hand to hand. Hundi as an instrument of exchange, which was prominent in the subcontinent. It involved a contract which — ( i ) warrant the payment of money, the promise or order which is unconditional (ii) capable of change through transfer by valid negotiation. Indigenous banking system played a prominent role in lending money and financing domestic and foreign trade with currency and letter of credit.

10. 1.Take away from the Yesterday class 1. The purpose behind most business activities is to earn money by meeting people’s demands for goods and services . Business is central to our lives. 2. The maritime routes linked the east and the west by sea and were used for the trade of spices and known as ‘spice route’. Due to the flow of wealth through these routes , the chief kingdoms, important trade centers and the industrial belt flourished , which in turn further facilitated the progress of domestic and international trade in ancient India. 3. Indigenous banking system played a prominent role in lending money and financing domestic and foreign trade with currency and letter of credit. 4. Documents such as ‘Hundi’ and ‘Chitti’ were in use for carrying out transactions in which money passed from hand to hand. 5. Hundi as an instrument of exchange (Bill of Exchange) , which was prominent in the subcontinent.

11. ‘Hundi’ and ‘Chitti ’ The purpose of Hundi is, that it will protect the traders from Dacoit's, Robber’s, Thief’s who attacked them in the journey and steal valuable money or gold coins from the traders who were traveling long distances on foot to procure goods. Hundis have a very long history in India. Written records show their use at least as far back as the Twelfth century . The merchant Banarasi Das, born 1586, received a hundi for 200 rupees from his father to enable him to borrow money to start trading. Before the Portuguese or Britishers, the Indian Indigenous traders were well versed with usage of Hundi instead of Money . For that certain Communities developed the networking of Individual Bankers(Marvadis) in all the prominent trade centers During the colonial era, the British government regarded the hundi system as indigenous or traditional, but not informal. They were reluctant to interfere with it as it formed such an important part of the Indian economy and they also wished to tax the transactions taking place within the system. Official hundi forms were produced incorporating revenue stamps bearing the image of British monarchs, including Queen Victoria, and disputes between merchants often entered the court system, so in no way was the system an underground one even though it did not take place through normal banking channels.

12. Names of Spices : cumin seeds – జీలకర్ర Turmeric – పసుపు Cinnamon – దాల్చిన Coriander leaves – కొత్తిమీర Clove – లవంగం Black Mustard seeds – ఆవాలు Black pepper – మిరియాలు Bay leaves — బిరియానీ ఆకు Cardamom — యాలకులు Fenugreek — మెంతులు Asafoetida — ఇంగువ Fennel seeds — సోపు గింజలు Curry leaves — కరివేపాకు Poppy seeds — గసగసాల Sesame seeds – నువ్వులు Watermelon — పుచ్చకాయ Dry mango powder – మామిడి పొడి Carom seeds — వాము Garlic — వెల్లుల్లి Nutmeg — జాజికాయ Camphor — కర్పూరం Saffron — కుంకుమపువ్వు Mace — జాపత్రి Wailong — మరాఠి మొగ్గ Basil — తులసి Sandal — చందనం Soap nuts – కుంకుడు Betal nuts – వక్కలు Dried ginger – శొంఠి Sago — సగ్గు బియ్యం Jaggery — బెల్లం Mint — పుదీన Coriander Seeds — ధనియాలు Almond — బాదం Cashew — జీడిపప్పు. Spices : సుగంధ ద్రవ్యాలు

13. Why Spices were so important for Europeans In the Middle Ages, Europeans lacked refrigeration and general hygiene, leading to food spoiling quickly. Spices were so important because they helped mask the flavor of not-so-fresh food . For Europeans the staple food is only meat procured from Beef and Large animals hunted in the summer. In winter it is not possible for the Europeans to hunt the animals, because of heavy snow fall all the animals hide in hibernation. Because of that the people in Europe procure and store the meat in advance for next 6 months of winter season. Spices are the best food preservatives. Spices not only add flavor to food but also preserve and improve on the shelf life of food items. So to preserve the meat in big storage vessels, they badly need our spices. Not only animal meat but also the bread can be stored for long periods if it is mixed with spices powder. Addition of spices to food had an effect in reducing food spoilage. Garlic was found to be the most effective in enhancing food preservation. After the fall of Constantinople, Europeans unable to get the spices on the land trade routes, because the Turks were controlling all the land routes, vandalizing the traders. Then the Pope of the Known world ordered the Portuguese and Spanish kings and queens to find out a viable sea route to India.

14. 1. Kerala, was a major spice trade center as early as 3,000 B. C. 2. Arab traders controlled the spice trade between Europe and the East, like China, Indonesia, India and Ceylon for almost 5,000 years until Europeans started looking for a new route to the Far East after the fall of Constantinople (Istanbul) 3. Christopher Columbus found America by accident, on his way to finding a new route to India. He found Jamaica instead, which has many spices of its own, like allspice. 4. It was Portuguese explorer Vasco de Gama who was the first to finally reach India in 1497, successfully navigating the southern tip of Africa. He returned from his landing spot on the southwest coast of India with his ships laden with nutmeg, cloves, cinnamon, ginger and peppercorns. 5. Treaty of Tordesillas : The lands to the east would belong to Portugal and the lands to the west to Castile. The treaty was signed by Spain, 2 July 1494, and by Portugal, 5 September 1494. The other side of the world was divided a few decades later by the  Treaty of Zaragoza , signed on 22 April 1529,(PAPAL BULLS) 6. The Netherlands really, really wanted a small Indonesian island called Run for it’s high volume of nutmeg, so it traded a few colonies across the Atlantic. One is now called Manhattan. 7. Wars over those “Spice Islands” in Indonesia, like Run, lasted for about 200 years, between the 15th and 17th centuries. 8. Piracy was rampant on the seas, especially off the coast of Portugal, preying on the ships that were carrying spices back to Europe from the Far East. 9. India is the top spice-producing country in the world. Some Fascinating Facts about Spice Trade

15. 2.Take away from the Yesterday class 1. ‘Hundi’ and ‘Chitti’ Bills of Exchange, Letter of Credit 2. Indigenous Banking System, Indian traders 3. Why Spices were so important for Europeans 4. Some Fascinating Facts about Spice Trade 5. Treaty of Tordesillas( Spain and Portugal) 6. Papal Bull ( Catholic Church Charter) 7. Spices : సుగంధ ద్రవ్యాలు (List of Spices) 8. POSITION OF INDIAN SUBCONTINENT IN WORLD ECONOMY ( 1 AD UP TO 1498) 9. The Fall of Constantinople (present Istanbul) 10. How the Indian Subcontinent was flourished because of Spices, Handicrafts, Handlooms, Artifacts.

16. The Fall of Constantinople Changed the Economic Prosperity of India

17. All the Roads leads to Constantinople

18. GALATA Bridge on Bosporus strait

19. GALATA Tower at Golden Horn Water Way

20. The seize of Constantinople led by Mehmed II the Ottoman Turk

21. Orban , a Hungarian (though some suggest he was German), His 27 feet (8.2 m) long cannon was named "Basilica" and was able to hurl a 600 lb (270 kg) stone ball over a mile (1.6 km). This huge cannon was first time used by Mehmed II to blast Theodosian Walls, the intricate series of walls and ditches protecting Constantinople from an attack. This Cannon successfully bombarded the wall in the war to seize Constantinople.

22. Theodosian Walls, the intricate series of walls and ditches https://www.youtube.com/watch?v=qe9uOpCCvnI&t=431s

23. PAPAL BULL: Treaty of Tordesillas A  papal bull  is a type of public decree,  letters patent , or  charter  issued by a  pope  of the  Catholic Church . It is named after the leaden  seal  ( bulla ) that was traditionally appended to the end in order to authenticate it. The most distinctive characteristic of a bull was the metal seal ( bulla ), which was usually made of  lead , but on very solemn occasions was made of  gold , as those on Byzantine imperial instruments often were (see  Golden Bull ). On the  obverse  it depicted, originally somewhat crudely, the early Fathers of the  Church of Rome , the  Apostles   Saint Peter  and  Saint Paul , identified by the letters  S anctus  PA ulus  and  S anctus  PE trus   (thus,  SPA •SPE  or  SPASPE ). St. Paul, on the left, was shown with flowing hair and a long pointed beard composed of curved lines, while St. Peter, on the right, was shown with curly hair and a shorter beard made of dome-shaped  globetti  (beads in relief).

24. A   papal bull   Pope Alexander VI Pope Alexander's papal bulls of 1493 confirmed or reconfirmed the rights of the Spanish crown in the New World following the finds of Christopher Columbus in 1492.

25. Treaty of Tordesillas Isabella I was Queen of Castile from 1474 until she died in 1504, reigning over a dynastically unified Spain jointly with her husband, King Ferdinand II of Aragon. She was Queen of Aragon after Ferdinand ascended in 1479. Together they are known as the Catholic Monarchs. John II, called the Perfect Prince, was King of Portugal from 1481 until his death in 1495, and also for a brief time in 1477. He is known for re-establishing the power of the Portuguese monarchy, reinvigorating the Portuguese economy, and renewing his country's exploration of Africa and Asia The Treaty of Tordesillas, signed in Tordesillas, Spain on June 7, 1494, and authenticated in Setúbal, Portugal, divided the newly-discovered lands outside Europe between the Portuguese Empire and the Spanish Empire, along a meridian 370 leagues west of the Cape Verde islands, off the west coast of Africa.

26. ORIENTAL OCCIDENTAL Treaty of Tordesillas : The lands to the east would belong to Portugal and the lands to the west to Castile. The treaty was signed by Spain, 2 July 1494, and by Portugal, 5 September 1494. The other side of the world was divided a few decades later by the  Treaty of Zaragoza , signed on 22 April 1529, EAST WEST

27. ORIENTAL Occidental

28. Map showing main Portuguese (blue) and Spanish (white) oceanic trade routes in the 16th century, as a result of the exploration during the Age of Discovery. Showing the Spanish colonial Manila-Acapulco Galleons route (1565-1815) between the Viceroyalty of New Spain (México) and the Spanish East Indies (Philippines), using the ports of Acapulco and Cavite.

29. POSITION OF INDIAN SUBCONTINENT IN WORLD ECONOMY ( 1 AD UP TO 1498 ) Between the 1st and the 7th centuries CE, India is estimated to have the largest economy of the ancient and medieval world, controlling about one third and one-fourth of the world’s wealth (timeline). The country was often referred to as ‘ Swaranbhumi ’ and ‘ Swarndweep ’ in the writings of many travelers, such as Megasthenes , Faxian (Fa Hien), Xuanzang ( Huen Tsang), Al Beruni (11th century), Ibn Batuta (11th century), Frenchman Francois (17th century) and others. They repeatedly refer to the prosperity of the country. The pre-colonial period in Indian history was an age of prosperity for Indian economy and made the Europeans embark great voyage of discovery. Initially, they came to plunder but soon realized the rewards of trade in exchange of gold and silver. Despite the growing commercial sector, it is evident that the 18th century India was far behind Western Europe in technology, innovation and ideas. With the increasing control of the East India Company causing lack of freedom and no occurrence of agricultural and scientific revolution, limited reach of education to the masses, population growth and preference to machines over manual skills made India a country which was prosperous but with people who were poor.

30. The economy of the empire was largely dependent on agriculture. Sorghum (jowar), cotton, and pulse legumes grew in semi-arid regions, while sugarcane, rice, and wheat thrived in rainy areas. Betel leaves, areca (for chewing), and coconut were the principal cash crops, and large-scale cotton production supplied the weaving centers of the empire's vibrant textile industry. Spices such as turmeric, pepper, cardamom, and ginger grew in the remote Malnad hill region and were transported to the city for trade. The empire's capital city was a thriving business center that included a burgeoning market in large quantities of precious gems and gold. Prolific temple-building provided employment to thousands of masons, sculptors, and other skilled artisans Vijayanagara Empire

31. According to Paes, the king of Vijayanagar had a lot of money. The residents of the city of Vijayanagar carried on trade in precious stones. Things were in plenty and also cheap. Barbosa refers to Vijayanagar as “of great extant, highly populous and the seat of an active commerce in country diamonds, rubies from Pegu , silks of China and Alexandria, and cinnabar, camphor, musk, pepper and sandal from Malabar.”

32. 2.Take away from the Yesterday class 1. ‘Hundi’ and ‘Chitti’ Bills of Exchange, Letter of Credit 2. Indigenous Banking System, Indian traders 3. Why Spices were so important for Europeans 4. Some Fascinating Facts about Spice Trade 5. Treaty of Tordesillas( Spain and Portugal) 6. Papal Bull ( Catholic Church Charter) 7. Spices : సుగంధ ద్రవ్యాలు (List of Spices) 8. POSITION OF INDIAN SUBCONTINENT IN WORLD ECONOMY ( 1 AD UP TO 1498) 9. The Fall of Constantinople (present Istanbul) 10. How the Indian Subcontinent was flourished because of Spices, Handicrafts, Handlooms, Artifacts.

33. ■ I n s t r u me n t A c t , ■ Bills Of Exchange, HUNDI, CHITTI, L etter O f C redit (IMPEX) A bill of exchange is a written order binding one party to pay a fixed sum of money to another party on demand or at some point in the future. A bill of exchange often includes three parties—the drawee is the party that pays the sum, the payee receives that sum, and the drawer is the one that obliges the drawee to pay the payee. A bill of exchange is used in international trade to help importers and exporters fulfill transactions. While a bill of exchange is not a contract itself, the involved parties can use it to specify the terms of a transaction, such as the credit terms and the rate of accrued interest.

34. A Hundi for Rs 2500 of 1951, Stamped in the Bombay Province with a Pre-printed  R evenue S tamp .

35. Banker Seller Buyer

36. Working Model of Bills Of Exchange/Letter of Credit/Hundi/Chitti/HAWALA Mirchi Whole Sale Agent @ GMY SBI Bank @ Guntur MIRCHI BUYER from PUNJAB The Guntur Mirchi Agent Selling Rs. 25 Lakhs worth of MIRCHI to PUNJAB Buyer on Credit, They know each other for a long time and there are some Commission Brokers who will guarantee for the sale The PUNJAB Buyer Promised to pay Rs25 Lakhs after 3months to Guntur Mirchi Agent via SBI of Punjab The PUNJAB Buyer after unloading the MIRCHI from the Railway Wagons, starts selling the Mirchi in Punjab and collect the money from sales and pay Rs 25 Lakh Due amount to the SBI on the name of the Guntur Mirchi Agent Now the Mirchi Agent Load the Cargo in the Rail Wagons to Punjab and get (RR) Railway Receipt From the Railway Authorities Slide 1 1 2 3 1 2 3

37. Working Model of Bills Of Exchange/Letter of Credit/Hundi/Chitty/HAWALA Mirchi Whole Sale Agent @ GMY SBI Bank @ Guntur MIRCHI BUYER fromPUNJAB The Guntur Mirchi Agent Sells Rs.25 Lakhs worth of MIRCHI to PUNJAB Buyer on Credit, They know each other for a long time and there are some Commission Brokers who will guarantee for the sale Now the Mirchi Agent Load the Cargo in the Rail Wagons to Punjab and get (RR) Railway Receipt From the Railway Authorities Immediately, the Guntur Agent submits the RR in the Guntur SBI and Draws the Money worth of Rs.25 Lakh with an acceptable rate of Discount for a period of 3 months from the Guntur SBI. He use the money for his business rotation . As per the Promise the Punjab buyer Pays the Due Amount Rs.25 Lakhs in the SBI Branch at Punjab at the end of the 3 months with Interest and Discount Commission and clears the Guntur Agents Liability to SBI. Slide 2 1 2 3 1 2

38. Working Model of Bills Of Exchange/Letter of Credit/Hundi/Chitty/HAWALA Mirchi Whole Sale Agent @ GMY SBI Bank @ Guntur MIRCHI BUYER from PUNJAB The Guntur Mirchi Agent Sells Rs.25 Lakhs worth of MIRCHI to PUNJAB Buyer on Credit, They know each other for a long time and there are some Commission Brokers who will guarantee for the sale Now the Mirchi Agent Load the Cargo in the Rail Wagons to Punjab and get (RR) Railway Receipt From the Railway Authorities The Guntur Mirchi Agent is already got the sanction of HUNDI facility from Guntur SBI for Certain Amount depends upon his need of the business, and submit the RR’s in the bank and gets back Rs 25 Lakhs and invest in the business for purchasing the Mirchi from the farmers. The Three Parties to the BILLS Of EXCHANGE DRAWEE– SBI Guntur 3 DRAWER--- GMA PAYEE---- Punjab Buyer Slide 3 1 2 3 1 2

39. Hundi as practiced by Indian Merchant Communities

40. Types of Hundi Sahyog Hundi: This is drawn by one merchant on another, asking the latter to pay the amount to a third merchant. In this case the merchant on whom the hundi is drawn is of some 'credit worthiness' in the market and is known in the bazaar. A sahyog hundi passes from one hand to another till it reaches the final recipient, who, after reasonable enquiries, presents it to the drawee for acceptance of the payment. Sahyog means co-operation in Hindi and Gujrati, the predominant languages of traders. The hundi is so named because it required the co-operation of multiple parties to ensure that the hundi has an acceptable risk and fairly good likelihood of being paid, in the absence of a formalized credit monitoring and reporting framework. Darshani Hundi: This is a hundi payable on sight. It must be presented for payment within a reasonable time after its receipt by the holder. Thus, it is similar to a demand bill. Muddati Hundi: A muddati or miadi hundi is payable after a specified period of time. This is similar to a time bill. There are few other varieties; the Nam-jog hundi, Dhani -jog hundi, Jawabee hundi, Jokhami hundi, Firman -jog hundi, etc.

41. Types of Hundi Nam-jog hundi - such a hundi is payable only to the person whose name is mentioned on the Hundi. Such a hundi cannot be endorsed in favour of any other person and is akin to a bill on which a restrictive endorsement has been made. Furman-jog Hundi - such a hundi can be paid either to the person whose name is mentioned in the hundi or to any person so ordered by him. Such a hundi is similar to a cheque payable on order and no endorsement is required on such a hundi. Dhani -jog Hundi - when the hundi is payable to the holder or bearer, it is known as a dhani jog hundi. It is similar to an instrument payable to bearer. Jokhim -Hundi - normally a hundi is unconditional but a jokhim hundi is conditional in the sense that the drawer promises to pay the amount of the hundi only on the satisfaction of a certain condition. Such a hundi is not negotiable, and the prevalence of such hundis is very rare these days because banks and insurance companies refuse to accept such hundis. Jawabi Hundi - if money is transferred from one place to another through the hundi and the person receiving the payment on is to give an acknowledgement ( jawab ) for same, then such a hundi is known as a Jawabi Hundi. Khaka Hundi - a hundi which has already been paid is known as a Khaka Hundi. Khoti Hundi - In case there is any kind of defect in the hundi or in case the hundi has been forged, then such a hundi is known as a khoti hundi.

42. Indigenous Banking System Agriculture and the domestication of animals were important components of the economic life of ancient people. In addition to this, by resorting to weaving cotton, dyeing fabrics, making clay pots, utensils, and handicrafts, sculpting, cottage industries, masonry, manufacturing, transports (i.e., carts, boats and ships), etc., they were able to generate surpluses and savings for further investment.

43. Workshops ( Karkhana ) were prominent where skilled artisans worked and converted raw materials into finished goods which were high in demand. Family-based apprenticeship system was in practice and duly followed in acquiring trade-specific skills. The artisans, craftsmen and skilled laborer's of different kinds learnt and developed skills and knowledge, which were passed on from one generation to another.

44. Rise of Intermediaries Intermediaries played a prominent role in the promotion of trade. They provided considerable financial security to the manufacturers by assuming responsibility for the risks involved, especially in foreign trade. It comprised commission agents, brokers and distributors both for wholesale and retail goods. An expanding trade brought in huge amounts of silver bullion into Asia and a large share of that bullion gravitated towards India. The institution of Jagat Seth's also developed and exercised great influence during the Mughal period and the days of the East India Company. Bankers began to act as trustees and executors of endowments. Foreign trade was financed by loans. However, the rate of interest for longer voyages was kept high in view of the huge risk involved. The Indian subcontinent enjoyed the fruits of favourable balance of trade, where exports exceeded imports with large margins and the indigenous banking system benefitted the manufacturers, traders and merchants with additional capital funds for expansion and development. Commercial and Industrial banks later evolved to finance trade and commerce and agricultural banks to provide both short-and long-term loans to finance agriculturists.

45. TRANSPORT Transport by land and water was popular in the ancient times. Trade was maintained by both land and sea. Roads as a means of communication had assumed key importance in the entire process of growth, particularly of the inland trade and for trade over land. The northern roadway route is believed to have stretched originally from Bengal to Taxila. There were also trade routes in the south spreading east and west. Trade routes were structurally wide and suitable for speed and safety. Maritime trade was another important branch of global trade network. Malabar Coast, on which Muziris is situated, has a long history of international maritime trade going back to the era of the Roman Empire. Pepper was particularly valued in the Roman Empire and was known as ‘Black Gold’. For centuries, it remained the reason for rivalry and conflict between various empires and trade powers to dominate the route for this trade. It was in the search for an alternate route to India for spices that led to the discovery of America by Columbus in the closing years of 15th century and also brought Vasco da Gama to the shores of Malabar in 1498. Calicut was such a bustling emporium that it was even visited by Chinese ships to acquire items, like frankincense (essential oil) and myrrh (fragrant resin used in perfumes, medicines) from the Middle East, as well as, pepper, diamonds, pearls and cotton from India. On the Coromandel Coast, Pullicat was a major port in the 17th century. Textiles were the principal export from Pullicat to Southeast Asia.

46. The most famous trading route that connected the east to the west from China to the Mediterranean sea. This route not only became a major trading route for goods but also a way to exchange ideas regarding culture, technology, medicine and much more. The main commodity traded was silk which gave this route its name. Silk was traded from China to Rome along with horses in exchange for wool, gold, and silver coming in from the Europe. The trade started during the Han dynasty(207BCE- 220CE). The Chinese took great care of their products and thus built the Great Wall Of China so as to protect their trade route. The trade route played an important role in the development of various countries. The beneficiaries include China, Korea, the Subcontinent, Persia, Europe, Horn Of Africa and Arabia. Apart from the economic benefits it also led to spread of cultural values, religion, philosophies, art, and various technologies. The main traders were Indians, Chinese, Arabs, Turkmens, Persians, Somalis, Greek, Syrians, Romans, Armenians, and Bactrians. The silk road fell out of use and became unsafe when the Roman empire crumbled in the 4th century CE. It remained unused until the 13th century. The route is also considered to be the main cause of the spread of plague bacteria which caused Black death and deterioration of empires.

47. The Silk Road & SPICE ROAD

48. This route was mainly a maritime route used by many countries to trade spices. The availability of spices like cinnamon, cassia, cardamom, ginger, pepper, nutmeg, cloves was rare in the west. These commodities were highly sought after. Before the 15th century, the whole market of spices was controlled by the Arabs and the North African men which made them extremely costly. With the advent of the Age Of Exploration sailing, long distances became possible and Europeans used this opportunity to forge economic relations with the east. This made the middlemen useless and the availability of spices easy and cheap. SPICE ROAD

49. It comprises of a network of major ancient land and sea routes connecting the Mediterranean world with the Eastern and Southern end of the Arabian peninsula(present Yemen and Oman). The route stretched from the ports of Mediterranean to India and beyond. It included Levant, Egypt, Northeastern Africa and Arabia. Main items of trade were Arabian frankincense and myrrh. These two were derived from tree sap and were used as perfumes or burned as incense. These were also popularly used in burial rituals for embalming. The other items included Indian spices, precious stones, pearls, ebony, silk, textiles, Horn Of African rare woods, feathers, animal skins. Incense ROAD

50. This route gained popularity because the trading cargo included valuable items like gold. The commodities traded also included slaves, salt, cloth, kola nuts and cowrie shells. Later on, multiple other products such as ostrich eggs, feathers, spices and even guns became the chief trading commodities. The transportation took the form of caravans which consisted of as much as 1200 camels, soldiers, traders and other goods. This route was instrumental in the growth of the monetary system and state building. The rulers understood the benefit of acquiring land and commodities. This gave rise to great cities Gao, Timbuktu, and Djenne Trans-Saharan Trade Route

51. The course derives its name from amber beads also known as "gold of the north" which are nothing but naturally occurring precious stones which are found across the coastal areas of North sea and the Baltic sea. Amber has been traded since 3000 BCE and has been found in the necklace of the Egyptian pharaoh Tutankhamen. The Amber road that connects the Baltic sea to the rest of the Europe was created by the Romans. The Romans used them as ornaments as well as for its medicinal purposes. Amber is found under the Baltic sea which was formed millions of years ago when the area was covered by forests. Storms washed the beads to the shore and were harvested by the traders across the shores of the beaches. During the crusades of the 12th and 13th century, the Teutonic Knights gained control of the business and yielded the profits. Traces of this road can be still found in Poland where a major highway is named as "Amber Highway". Amber Road

52. Trading Communities Strengthened In different parts of the country, different communities dominated trade. Punjabi and Multani merchants handled business in the northern region, while the Bhats managed the trade in the states of Gujarat and Rajasthan. In western India, these groups were called Mahajan, Chatt is were important traders from the South. In urban centers, such as Ahmedabad the Mahajan community collectively represented by their chief called Nagarseth. Other urban groups included professional classes, such as hakim and Vaid (physician), wakil (Lawyer), pundit or Mulla (teachers), painters, musicians, calligraphers, etc. Merchant Corporations: The merchant community also derived power and prestige from guilds, which were autonomous corporations formed to protect the interests of the traders. These corporations, organized on formal basis, framed their own rules of membership and professional code of conduct, which even kings were supposed to accept and respect. Tariffs varied from province to province. The ferry tax was another source of income generation. It had to be paid for passengers, goods, cattle and carts. The right to receive the labor tax was usually transferred to the local bodies. The guild chief dealt directly with the king or tax collectors and settled the market toll on behalf of its fellow merchants at a fixed sum of money. The guild merchants also acted as custodians of religious interests.

53. Major Exports and Imports Exports consisted of spices, wheat, sugar, indigo, opium, sesame oil, cotton, parrot, live animals and animal products—hides, skin, furs, horns, tortoise shells, pearls, sapphires, quartz, crystal, lapis, lazuli, granites, turquoise and copper etc. Imports included horses, animal products, Chinese silk, flax and linen, wine, gold, silver, tin, copper, lead, rubies, coral, glass, amber, etc.

54. NUTMEG

55. Leading trade centers in ancient India: Pataliputra: Known as Patna today. It was not only a commercial town, but also a major center for export of stones. Peshawar: It was an important exporting center for wool and for the import of horses. It had a huge share in commercial transactions between India, China and Rome in the first century A.D. Taxila: It served as a major center on the important land route between India and Central Asia. It was also a city of financial and commercial banks. The city occupied an important place as a Buddhist center of learning. The famous Taxila University flourished here. Indraprastha: It was the commercial junction on the royal road where most routes leading to the east, west, south and north converged. Mathura: It was an emporium of trade and people here subsisted on commerce. Many routes from South India touched Mathura and Broach. Varanasi: It was well placed as it lay both on the Gangetic route and on the highway that linked North with the East. It grew as a major center of textile industry and became famous for beautiful gold silk cloth and sandalwood workmanship. It had links with Taxila and Bharuch.

56. INDRAPRASTHA TAXILA PESHAWAR PATALIPUTHRA

57. MATHURA VARANASI MITHILA

58. Leading trade centers in ancient India: 7. Mithila: The traders of Mithila crossed the seas by boats, through the Bay of Bengal to the South China Sea, and traded at ports on the islands of Java, Sumatra and Borneo. Mithila established trading colonies in South China, especially in Yunnan. 8. Ujjain: Agate, carnelian, muslin and mallow cloth were exported from Ujjain to different centres . It also had trade relations through the land route with Taxila and Peshawar. 9. Surat: It was the emporium of western trade during the Mughal period. Textiles of Surat were famous for their gold borders ( zari ). It is noteworthy that Surat hundi was honoured in far off markets of Egypt and Iran. 10. Kanchi : Today known as Kanchipuram, it was here that the Chinese used to come in foreign ships to purchase pearls, glass and rare stones and in return they sold gold and silk.

59. BHARUCH MADURAI

60. Leading trade centers in ancient India: 11. Madura: It was the capital of the Pandayas who controlled the pearl fisheries of the Gulf of Mannar . It attracted foreign merchants, particularly Romans, for carrying out overseas trade. 12. Broach: It was the greatest seat of commerce in Western India. It was situated on the banks of river Narmada and was linked with all important marts by roadways. 13. Kaveripatta : Also known as Kaveripatnam, it was scientific in its construction as a city and provided loading, unloading and strong facilities of merchandise. Foreign traders had their headquarters in this city. It was a convenient place for trade with Malaysia, Indonesia, China and the Far East. It was the centre of trade for perfumes, cosmetics, scents, silk, wool, cotton, corals, pearls, gold and precious stones; and also for ship building. 14. Tamralipti: It was one of the greatest ports connected both by sea and land with the West and the Far East. It was linked by road to Banaras and Taxila.

61. PULICOT KAVERI PATTINAM TAMRALIPTI

62. POSITION OF INDIAN SUBCONTINENT IN WORLD ECONOMY ( 1 AD UP TO 1991) Between the 1st and the 7th centuries CE, India is estimated to have the largest economy of the ancient and medieval world, controlling about one third and one-fourth of the world’s wealth (timeline). The country was often referred to as ‘ Swaranbhumi ’ and ‘ Swarndweep ’ in the writings of many travelers, such as Megasthenes , Faxian (Fa Hien), Xuanzang ( Huen Tsang), Al Beruni (11th century), Ibn Batuta (11th century), Frenchman Francois (17th century) and others. They repeatedly refer to the prosperity of the country. The pre-colonial period in Indian history was an age of prosperity for Indian economy and made the Europeans embark great voyage of discovery. Initially, they came to plunder but soon realized the rewards of trade in exchange of gold and silver. Despite the growing commercial sector, it is evident that the 18th century India was far behind Western Europe in technology, innovation and ideas. With the increasing control of the East India Company causing lack of freedom and no occurrence of agricultural and scientific revolution, limited reach of education to the masses, population growth and preference to machines over manual skills made India a country which was prosperous but with people who were poor.

63. India begins to Reindustrialise After Independence, the process of rebuilding the economy started and India went for centralized planning. The First Five Year Plan was implemented in 1952. Due importance was given to the establishment of modern industries, modern technological and scientific institutes, space and nuclear programmes. Despite these efforts, the Indian economy could not develop at a rapid pace. Lack of capital formation, rise in population, huge expenditure on defense and inadequate infrastructure were the major reasons. As a result, India relied heavily on borrowings from foreign sources and finally, agreed to economic liberalization in 1991. The Indian economy is one of the fastest growing economies in the world today and a preferred FDI destination. Rising incomes, savings, investment opportunities, increased domestic consumption and younger population ensures growth for decades to come. The recent initiatives of the Government of India such as ‘Make in India’, Skill India’, ‘Digital India’ and roll out of the Foreign Trade Policy (FTP 2015-20) is expected to help the economy in terms of exports and imports and trade balance.