1. Indian Dominance in Pre-Colonial Textile Trade

• India’s Global Dominance in Textiles 🌍🧵
o Before the rise of industrialization, India was a leading producer of high-quality silk and cotton textiles.
o Indian textiles, particularly finer cotton varieties and silk goods, dominated the international market and were in high demand worldwide.

• Quality of Indian Cotton 🌿💎
o India specialized in fine cotton textiles, which were superior to coarser varieties produced in other countries.
o Products like calicos, muslins, and chintz were considered luxury items and highly sought after in international markets.

• Role of Merchants in Trade 🚚💰
o Armenian and Persian merchants were instrumental in transporting Indian textiles from Punjab to distant regions like Afghanistan, Eastern Persia, and Central Asia.
o Textiles were carried via camel caravans, navigating through mountain passes and across deserts, facilitating overland trade.

• Key Ports in Maritime Trade ⚓️🌊
o Surat on the Gujarat coast connected India to Gulf and Red Sea ports, acting as a major trade hub for Indian textiles.
o Masulipatam on the Coromandel Coast and Hoogly in Bengal were crucial ports for trade with Southeast Asia, extending India’s influence in the region.

• Merchants and Trade Networks 🤝🌐
o Indian merchants and bankers played a key role in financing the export trade, ensuring the movement of goods from weaving villages to the ports.
o Supply merchants advanced payments to weavers, procured finished goods from rural areas, and transported them to the ports for export.

• India’s Role in International Textile Trade 🧳✂️
o Indian textiles were exported across the globe, making India the center of a vibrant, international trade network. Indian-made textiles were highly valued and considered premium products in markets worldwide.

2. Breakdown of the Pre-Colonial Trade Network by the Mid-18th Century

• Decline of the Indian Merchant-Controlled Trade Network 📉💔
o By the mid-18th century, the once-thriving network of Indian merchants and trade routes began to break down.
o Indian merchants, who had controlled the export trade and had strong financial networks, started to lose their influence.

• Rise of European Companies 🇪🇺💼
o The European companies, such as the British East India Company, gradually gained control over trade.
o These European powers secured concessions from local courts and obtained monopoly rights to trade in India, replacing the local Indian merchants who had traditionally controlled the market.

• Impact on Indian Ports ⚓️⛔️
o As European companies gained more power, traditional Indian ports like Surat and Hoogly saw a decline in their significance.
o The control over exports shifted from the hands of local Indian merchants to the European trading companies.
o The decline of Surat and Hoogly caused a sharp reduction in the volume of trade, particularly the export of Indian textiles.

• Economic Consequences for Local Merchants 💸💥
o The credit that had previously financed Indian trade started drying up as European monopoly over trade expanded.
o This led to the bankruptcy of many local Indian bankers who had been integral to the funding and functioning of the traditional trade network.

• Trade Statistics 📊💡
o In the last years of the 17th century, the total value of trade passing through Surat was Rs 16 million.
o However, by the 1740s, this value had dramatically fallen to Rs 3 million, showcasing the decline in India’s trade influence.

• Shift from Surat and Hoogly to Bombay and Calcutta 🚢🔄
o As traditional ports collapsed, Bombay and Calcutta began to emerge as the new centers of trade.
o This shift marked the growing power of the European colonial powers in shaping India’s trade landscape.
o Trade through these new ports was controlled by European companies, and goods were transported in European ships, further diminishing local merchant participation.

• Survival of Indian Merchants within European-Controlled Trade 💼🤔
o While many Indian trading houses collapsed due to the new colonial control, some Indian merchants tried to survive by adapting to the European-dominated trade network.
o These merchants had to operate within a framework shaped by European companies, leading to a reduction in their autonomy and influence in the market.

3. Shift of Trade Control to European Companies and the Impact on Indian Ports

• European Companies Gaining Control 🇪🇺💼
o By the 1750s, European trading companies had successfully secured significant control over India’s export trade.
o These companies, notably the British East India Company, gradually obtained monopoly rights to trade, particularly in textiles, through local courts and concessions.
o The process of securing monopoly rights allowed Europeans to establish their dominance in the Indian trade market, displacing local Indian merchants.

• Decline of Traditional Indian Ports ⚓️📉
o Ports such as Surat and Hoogly, which had previously been major trade hubs for Indian merchants, began to decline in significance.
o The decay of Surat and Hoogly was a direct result of the shift in control of trade from Indian merchants to European powers.
o The collapse of these ports led to a dramatic drop in trade volumes, especially in textile exports, which had been a core part of India’s export economy.

• Shift of Trade to Bombay and Calcutta 🚢🔄
o As Surat and Hoogly lost their prominence, Bombay and Calcutta emerged as the new central ports for trade.
o This shift represented the increasing influence of European colonial power, as Bombay and Calcutta became strategically positioned to serve as centers for European-controlled trade.
o European trading companies were now in control of exports, and European ships were used for transporting goods.

• Impact on Indian Merchants and Banking 💸🏦
o The traditional network of Indian merchants and local bankers was severely impacted by the shift in control of trade.
o Local merchants, who had been involved in financing, transporting, and supplying goods, began to lose their role in the trade network as European companies took over.
o The drying up of credit that had financed trade in the earlier years led to the bankruptcy of many Indian bankers and merchants who were unable to survive in the new European-dominated environment.

• Change in the Nature of Goods Exported 📦🧵
o Under European control, the types of goods traded and the manner of trade itself underwent significant changes.
o While the old ports had primarily exported Indian-made textiles, now European-controlled ports began exporting goods primarily for European markets.
o This shift also reflected a broader colonial economic agenda that focused on serving European interests rather than sustaining the Indian economy.

4. Decline of Traditional Ports and the Rise of European-Controlled Ports

• Impact on Surat and Hoogly Ports 🏙️💔
o Surat and Hoogly were once thriving trade centers for Indian merchants, especially in the textile export business.
o With the advent of European companies taking control of trade in India, these ports saw a sharp decline.
o Exports from these ports fell dramatically: The gross value of trade passing through Surat in the last years of the seventeenth century had been Rs 16 million, but by the 1740s, this figure had dropped to Rs 3 million.
o Indian merchants who operated through Surat and Hoogly were no longer able to compete with the European companies that now had monopoly rights to trade.

• Declining Role of Indian Merchants and Bankers 🛑💼
o The decline of Surat and Hoogly also meant the collapse of the local merchant networks and banking systems that had once financed and facilitated trade.
o Indian bankers who had financed the production and trade of textiles found themselves out of business as European powers took over control of credit and trade.
o Supply merchants who used to procure goods from inland villages, particularly textiles, and bring them to the ports for export, were also sidelined as European companies took charge of both production and distribution networks.

• The Rise of Bombay and Calcutta as New Trade Hubs 🏙️📈
o As Surat and Hoogly’s decline continued, Bombay and Calcutta emerged as the new centers of trade in India, and their role in the export of Indian goods expanded.
o These cities were strategically positioned to serve European colonial powers. As a result, both ports witnessed a significant rise in European influence, as European trading companies took control of trade through these ports.
o Bombay and Calcutta became hubs for trade not only within India but also for the broader colonial empire. European ships now controlled most of the trade, and European companies handled the flow of goods in and out of the country.

• Control by European Trading Companies 🇪🇺🚢
o The shift to European-controlled ports marked the centralization of trade under colonial powers, especially the British East India Company, which held monopoly rights to the trade in textiles and other goods.
o European ships were now used to carry the goods, reflecting the growing power and presence of European colonizers in India’s economic sphere.
o As Indian merchants were sidelined, European companies controlled the entire supply chain, from procurement of raw materials to the export of finished goods.

• Transformation of Trade Networks 🔄💹
o This transition from Indian merchant dominance to European control resulted in a transformation of India’s export network.
o Indian merchants who had once been at the center of international trade found themselves relegated to a subordinate position, forced to either collaborate with the European companies or face financial ruin.
o The nature of goods being traded shifted as well, with the focus on products that were primarily designed for European markets, rather than those catering to local or regional demands.

5. Economic Shifts Due to European Control of Trade

• Monopoly of European Trading Companies 🏭📊
o As European companies, particularly the British East India Company, gained control over trade, they established monopolistic practices that greatly influenced India’s economy.
o These European companies were granted special concessions by local Indian rulers, allowing them to control large portions of India’s trade, particularly in textiles.
o The monopoly meant that European companies were able to control not just the supply chains but also the pricing, making it difficult for Indian merchants to compete or retain control over the export industry.

• Decline of Indian Merchant Influence 📉💔
o The shift in control from Indian to European hands led to the decline of Indian merchants and traders, who had previously played a central role in India’s export industry.
o As European companies dominated the trade, Indian merchants who had been involved in financing production, carrying goods, and supplying exporters lost their significance.
o The traditional merchant networks, which had connected inland areas with the coastal ports, collapsed due to the growing power of European-controlled ports like Bombay and Calcutta.

• Decline of Traditional Ports ⚓️📉
o Surat and Hoogly, once thriving ports at the heart of India’s export economy, experienced significant decline as European companies shifted trade to newer ports.
o Surat saw its trade fall from Rs 16 million in the 1670s to just Rs 3 million by the 1740s, reflecting the dramatic decline in trade through these ports.
o This was due to European monopoly in the region, which led to the fall of local industries and trade houses that had operated in Surat and Hoogly for centuries.

• Shift to European-Controlled Ports 🚢🌍
o As the older Indian ports faded, Bombay and Calcutta emerged as the new focal points for trade, signaling the expansion of colonial influence.
o These cities were now dominated by European powers, and the control of trade shifted from local Indian hands to those of the European companies, such as the British East India Company.
o The growth of these ports mirrored the increased influence of European colonial powers in India’s economic affairs and signaled a shift in the global trade network.

• Impact on Indian Economy 💸📉
o The shift of trade to European-controlled ports had a profound impact on the Indian economy. While goods like textiles continued to be produced in India, the profits from their trade were increasingly controlled by Europeans.
o Indian merchants were relegated to the margins of the economy, and local industries were subordinated to the needs and interests of European trade companies.
o The changes in the Indian export market reflected a larger economic restructuring imposed by colonial rule, where the focus shifted to meeting the needs of the European colonial powers, rather than benefiting the local Indian economy.

• European Shipping Control 🚢🔒
o European companies also controlled the shipping industry, ensuring that goods were transported in European ships.
o This further consolidated their power, as they monopolized both the production and distribution of goods.
o By controlling the movement of goods, European companies not only dominated the Indian export market but also had the power to determine the flow of goods between India and other parts of the world, including European markets.