Model Answer
0 min readIntroduction
The Mughal period witnessed a significant intensification of India’s long-standing trade relations with Europe. Prior to the Mughals, trade was largely limited to luxury goods. However, the establishment of a stable political structure under the Mughals, coupled with European expansionism driven by the Age of Discovery, led to a dramatic increase in the volume and scope of trade. Initially, Europeans sought access to Indian spices, textiles, and other valuable commodities, offering bullion in exchange. Over time, this relationship transformed, with European companies gaining increasing political and economic control, ultimately laying the foundations for colonial rule. This sketch will outline the key features of this evolving trade dynamic.
Early Phase: Portuguese Dominance (16th Century)
The Portuguese were the first Europeans to establish a direct sea route to India in 1498 under Vasco da Gama. Initially, they controlled the trade in spices, particularly pepper, from the Malabar Coast. They established fortified trading posts (feitorias) like Goa, Daman, and Diu, gaining a monopoly over the spice trade. However, their control was largely limited to coastal areas and they faced competition from Arab and Venetian merchants. The Portuguese trade was characterized by a bullion economy – they paid for Indian goods primarily with silver and gold.
Dutch Entry and Competition (Early 17th Century)
The Dutch East India Company (VOC), established in 1602, entered the Indian Ocean trade with a more aggressive and efficient approach. They focused on the Indonesian archipelago but also established trading posts in India, primarily in Surat, Bantam, and Pulicat. The Dutch challenged the Portuguese monopoly, particularly in the spice trade, and gradually displaced them. They were more interested in bulk trade and focused on textiles, indigo, and saltpetre, in addition to spices. The Dutch were known for their efficient organization and ruthless business practices.
English East India Company’s Rise (17th-18th Centuries)
The English East India Company (EIC), founded in 1600, initially lagged behind the Portuguese and Dutch. However, through a combination of strategic alliances, military strength, and shrewd business practices, they gradually gained dominance. The EIC established its first factory in Surat in 1613. Key milestones include:
- 1615: Victory over the Portuguese at Swally, marking a turning point in the struggle for control of Indian trade.
- 1690: Establishment of Calcutta, which became a major trading center and eventually the capital of British India.
- 1757: Battle of Plassey, which gave the EIC political control over Bengal and significantly expanded its economic influence.
The EIC focused on textiles (cotton, silk), indigo, opium, and saltpetre. They developed a complex network of agents (gomasthas) to procure goods and control the supply chain. The EIC increasingly used its political power to manipulate trade in its favor, imposing tariffs and restricting competition.
French Challenge and its Failure (18th Century)
The French East India Company, established in 1664, also attempted to establish a foothold in India. They established trading posts in Pondicherry, Chandernagore, and Mahe. The French initially enjoyed some success, particularly under Governor Dupleix, who pursued a policy of intervention in Indian politics. However, they were ultimately defeated by the British in the Carnatic Wars (1746-1763), losing their political and economic influence.
Commodities Traded
| From India to Europe | From Europe to India |
|---|---|
| Textiles (cotton, silk, muslin) | Bullion (silver, gold – initially) |
| Spices (pepper, cinnamon, cloves) | Woolen cloth (limited demand) |
| Indigo | Metals (copper, iron) |
| Opium | Wine and brandy |
| Saltpetre (for gunpowder) | Luxury goods (glassware, clocks) |
Impact on the Indian Economy
The influx of silver initially stimulated the Indian economy. However, the drain of wealth began as the EIC increasingly used its political power to extract resources and manipulate trade. The decline of Indian textile industries due to competition from cheaper, machine-made British textiles is a significant consequence. The EIC’s monopoly and exploitative practices led to the impoverishment of many Indian artisans and farmers. The shift from a bullion-based trade to a tribute-based system marked a turning point in India’s economic history.
Conclusion
Indian trade with Europe during the Mughal period underwent a dramatic transformation, evolving from a mutually beneficial exchange of goods to a system of exploitation and control. The initial Portuguese dominance gave way to Dutch competition, and ultimately, the English East India Company emerged as the dominant force. This period laid the groundwork for British colonial rule and had a profound and lasting impact on the Indian economy, contributing to its deindustrialization and impoverishment. The story of this trade is a complex one, marked by both economic opportunity and political subjugation.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.