Discuss the character of India's maritime trade during the 17th century.

Introduction

India’s Maritime Significance in the Early Modern World

The 17th century marked a significant phase in India’s maritime trade, situated within the wider
context of expanding global commerce. India’s strategic geographical position, skilled merchant
communities, and diverse export commodities made it an integral node in the Indian Ocean
trade network. While Indian traders had dominated these seas for centuries, this period
witnessed increasing involvement of European trading companies, altering but not erasing the
commercial dominance of Indian merchants. The century saw vibrant commercial activity
through both indigenous networks and European companies, leading to a dynamic and
sometimes contested maritime economy.

Prominent Port Cities and Regional Trade Networks

India’s vast coastline hosted several thriving port cities that served as vital nodes in regional and
international trade. On the west coast, Surat emerged as the principal port under the Mughal
Empire. It was the chief emporium of the empire’s overseas trade, exporting cotton textiles,
indigo, saltpetre, and opium, and importing bullion, horses, and luxury goods. Goa, under the
Portuguese since the early 16th century, continued to link India with the Red Sea and East
Africa. Bombay, handed to the British Crown in 1661 as part of Catherine of Braganza’s dowry,
grew steadily in strategic and commercial importance.
On the east coast, ports like Masulipatnam, Pulicat (a Dutch base), and Nagapattinam facilitated
the Coromandel textile trade with Southeast Asia, Europe, and West Asia. The Bengal delta,
particularly Hooghly, became a hub for the trade in muslin, silk, salt, and rice. The port of
Balasore also rose in importance for the English and Dutch. These ports served not only as
points of export and import but also as sites of negotiation between Indian rulers, merchants,
and foreign traders.

Trade Commodities and Their Global Demand

India’s exports were in high demand across global markets. Textiles, particularly calicoes and
chintz from Gujarat and Coromandel, and the delicate muslins and silks of Bengal, formed the
backbone of maritime exports. These fabrics were shipped to Southeast Asia, the Middle East,
Africa, and Europe. Other important exports included spices (such as pepper and cardamom),
indigo (used as a dye), saltpetre (a key ingredient in gunpowder), opium, and precious stones.
In return, India imported silver and gold, especially from Europe and the Americas, reflecting a
favourable balance of trade. Other imports included Chinese silk and porcelain, Arabian horses,
Persian carpets, and European glassware. The influx of bullion contributed to the monetization
of the Indian economy, especially under the Mughals, and further stimulated rural and urban
production.

Indigenous Merchant Communities and Financial Networks

Indian merchants played a central role in the functioning of maritime trade. Communities such
as the Gujaratis, Marwaris, Chettiars, Chulias, and Baniyas, along with Armenian and Jewish
traders, operated extensive trading networks across the Indian Ocean world—from the Red Sea
and Persian Gulf to Southeast Asia. These merchants often managed trade on behalf of
European companies or as autonomous actors. They employed instruments such as hundis
(bills of exchange), partnership firms, and oral contracts based on trust and kinship, enabling
long-distance transactions.
Prominent trading families, such as the Jagat Seths in Bengal and Virji Vora in Surat,
commanded immense economic influence and often loaned money to both Indian rulers and
European companies. Indigenous shipowners also maintained their own fleets, transporting
goods independently or in collaboration with foreign traders. Their ability to adapt to shifting
political conditions demonstrated the resilience and complexity of Indian merchant capitalism.

The Role of European Companies in Restructuring Trade

The 17th century saw the arrival and consolidation of European trading companies in India. The
Portuguese Estado da Índia, though dominant in the 16th century, began to decline due to rising
competition and internal challenges. The Dutch East India Company (VOC), established in
1602, and the English East India Company (EIC), founded in 1600, emerged as major
contenders. The French East India Company arrived later in the century. These companies
established factories (trading posts) along the Indian coast: the English in Surat, Madras (1639),
and later Bombay; the Dutch in Pulicat and Nagapattinam; the French in Pondicherry.
Initially dependent on Indian merchants and goods, the European companies gradually began
asserting political and military control to secure trade monopolies and favourable terms. They
used cartaz systems (passes for shipping), levied customs duties, and intervened in local
politics. However, their full political dominance would only be realized in the following century.

Shipbuilding and Indigenous Maritime Expertise

India possessed a sophisticated tradition of shipbuilding, with major shipyards in Surat, Bombay,
and Bengal. Indian ships, often made from teak, were renowned for their durability and
craftsmanship. Indian shipbuilders constructed vessels for both Indian and European use, with
some European companies commissioning Indian craftsmen for their fleets. The use of
monsoon winds, understanding of ocean currents, and reliance on astrolabes and star-based
navigation indicated a deep indigenous knowledge system.
Moreover, Indian lascar sailors were recruited in large numbers by European ships, indicating a
transfer of seafaring knowledge and manpower from the subcontinent to global maritime
networks.

Changing Dynamics and Growing European Control by Century’s End

By the late 17th century, shifts in the balance of power became more visible. Increasing
European militarization, piracy, and conflicts among Indian rulers disrupted older trade networks.
The Mughal Empire’s weakening grip over its provinces, especially Bengal and Gujarat, gave
more room for companies like the EIC to negotiate direct control over revenue and trade rights.
While Indian merchants remained key intermediaries and producers, they increasingly relied on
European ships and credit systems, limiting their autonomy. This laid the groundwork for the
18th-century shift toward colonial dominance of trade and territory.

Conclusion: Coexistence, Contestation, and Transition

India’s 17th-century maritime trade was marked by coexistence and competition between Indian
and European traders. Indigenous merchants maintained vibrant networks and adapted to
changing political and economic contexts. While European companies gained footholds through
diplomacy and force, they continued to depend on Indian expertise, labour, and goods. The
century represented both a high point in Indian oceanic commerce and the beginning of
structural transformations that would culminate in colonial domination. The legacy of this period
is one of complexity—marked by resilience, innovation, and the early rumblings of global
capitalism.