explain the history of Commerce
Dear Student,
A network of roads merging into the Silk Route helped India in establishing commercial and political contacts with adjoining foreign kingdoms and empires of the world, especially Asia. 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 centres and the industrial belt flourished, which in turn further facilitated the progress of domestic and international trade in ancient India.
INDIGENOUS BANKING SYSTEM: In the beginning, barter system was used as a medium of exchange which was later substituted by metals which is now substituted by money. Use of metallic money accelerated economic development. Documents such as Hundi and Chitti were in use for carrying out transactions in which money passed from hand to hand. With the development of banking, people began to deposit precious metals with lending individuals functioning as bankers or Seths, and money became an instrument for supplying the manufacturers with a means of producing more goods.
RISE OF INTERMEDIARIES: The emergence of credit transactions and availability of loans and advances enhanced commercial operations.The Indian subcontinent enjoyed the fruits of favourable balance of trade, where exports exceeded imports with large margins and the indigenous banking system benefited 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.
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.
TRADING COMMUNITIES STRENGTHENED: 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 centres, such as Ahmedabad the Mahajan community collectively represented by their chief called nagarseth.
The major trade centres included Patliputra, Peshawar, Taxila, Indraprastha, Mathura, Varanasi etc.
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.
INDIA BEGINS TO REINDUSTRIALISE: After Independence, the process of rebuilding the economy started and India went for centralised 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. Lack of capital formation, rise in population, huge expenditure on defence and inadequate infrastructure were the major reasons. As a result, India relied heavily on borrowings from foreign sources and finally, agreed to economic liberalisation 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.
Regards.
A network of roads merging into the Silk Route helped India in establishing commercial and political contacts with adjoining foreign kingdoms and empires of the world, especially Asia. 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 centres and the industrial belt flourished, which in turn further facilitated the progress of domestic and international trade in ancient India.
INDIGENOUS BANKING SYSTEM: In the beginning, barter system was used as a medium of exchange which was later substituted by metals which is now substituted by money. Use of metallic money accelerated economic development. Documents such as Hundi and Chitti were in use for carrying out transactions in which money passed from hand to hand. With the development of banking, people began to deposit precious metals with lending individuals functioning as bankers or Seths, and money became an instrument for supplying the manufacturers with a means of producing more goods.
RISE OF INTERMEDIARIES: The emergence of credit transactions and availability of loans and advances enhanced commercial operations.The Indian subcontinent enjoyed the fruits of favourable balance of trade, where exports exceeded imports with large margins and the indigenous banking system benefited 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.
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.
TRADING COMMUNITIES STRENGTHENED: 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 centres, such as Ahmedabad the Mahajan community collectively represented by their chief called nagarseth.
The major trade centres included Patliputra, Peshawar, Taxila, Indraprastha, Mathura, Varanasi etc.
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.
INDIA BEGINS TO REINDUSTRIALISE: After Independence, the process of rebuilding the economy started and India went for centralised 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. Lack of capital formation, rise in population, huge expenditure on defence and inadequate infrastructure were the major reasons. As a result, India relied heavily on borrowings from foreign sources and finally, agreed to economic liberalisation 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.
Regards.