Position of Indian Merchants in Overland Trade
Medieval History › Medieval Economy & Trade · Topic 8.3
Overland trade to Central and West Asia was run by Multanis, Khurasanis, Afghans, Iranians and later Khatris, with Lahore, Multan, Kabul and Qandahar as gateways. About 10,000 Indian traders lived in Iran, with colonies at Baku, Astrakhan, Yarkand and Khotan, carrying goods as far as Moscow and China. The trade declined only with the break-up of the Safavid and Mughal empires.
5 min read · UPSC Prelims · History · Medieval Economy & Trade
At a Glance
- Sultanate era Multani merchants
- Mughal era Multanis, Afghans and Khatris
- Gateways Kabul, Qandahar, Lahore, Multan
- Colonies Iran, Baku, Astrakhan, Yarkand, Khotan
- Decline With Safavid and Mughal break-up
- Exam link UPSC Prelims, Medieval History: Medieval Economy & Trade
Where Does It Fit?
This is the third topic of the category on medieval economy and trade. The previous topic described overseas trade, and this one covers the land routes to Central and West Asia. The next topic covers the state’s relationship with commerce. Previous topic: Overseas Trade and the Role of European Trading Companies.
Who Carried the Overland Trade?
In short: Multani, Afghan and Khatri merchants controlled the caravan trade through the northwest gateways.
In the Sultanate period the overland trade with Central and West Asia was in the hands of Multanis, who were mostly Hindus but included Muslims such as Khurasanis, Afghans and Iranians. Many of them settled in Delhi. Barani says they were so rich that gold and silver were found in abundance only in their houses, and nobles had to run to them to borrow money whenever they wished to hold a feast. In the Mughal period the overland trade to Central Asia was in the hands of Multanis, Afghans and Khatris. Lahore and Multan were the major centres, and Lahore had close ties with Kabul and Qandahar on one side and Delhi and Agra on the other.
Why Were the Northwest Gateways Vital?
| Place | Role |
|---|---|
| Kabul and Qandahar | Twin gateways of India’s trade with Central Asia; starting points of caravans to China in the east and the Mediterranean seaports in the west |
| Multan | Staging point for caravans to West and Central Asia, linked by Sher Shah’s road from Lahore |
| Lahore | Handicraft centre and distribution point for Kashmir luxuries |
| Indus route | Goods from Central Asia reached Multan via Qandahar and went down the Indus to the sea |
Their value is a reason behind Mughal frontier policy, described in Mughal Foreign Policy – Relations with the Uzbeks and Safavid Iran (the Qandahar Issue). Akbar urged Abdullah Uzbek to treat this route as an alternative for pilgrims and goods heading for Mecca.
How Far Did Indian Merchants Reach?
A large colony of traders, said to number 10,000, lived in different parts of Iran. From Iran they spread to Bokhara and Samarqand and to South Russia. There was a large colony of Indian traders at Baku and at Astrakhan at the mouth of the Volga, who traded up to Moscow. Indian traders also lived at Yarkand and Khotan in modern Sinkiang, helping trade from the Punjab via Kashmir and Ladakh to China. In the Sultanate period too, fine Indian textiles reached China and were valued more than silk, and India imported textiles, glassware and horses from West Asia and raw silk and porcelain from China.
What Does the Timeline Show?
| Period | Development |
|---|---|
| Sultanate | Multani merchants carry the overland trade; fine Indian textiles reach China; horses, glassware and silk come in |
| Akbar | Qandahar acquired in 1595; Akbar promotes the Qandahar-Multan-Indus route |
| Seventeenth century | Colonies of Indian traders in Iran, Russia and Sinkiang; Khatris prominent |
| Eighteenth century | Trade declines with the break-up of the Safavid and Mughal empires |
What Was Their Condition and What Ended the Trade?
Indian merchants in this trade were wealthy and organised, and rulers kept royal roads and sarais for their safety; Muhammad Tughlaq built a road to Daulatabad besides the royal road from Peshawar to Sonargaon. Travel was still risky because of robbers and marauding tribes. The wealthy Gujarati and Marwari merchants, many of them Jains, spent large sums on temples, and the rich of Cambay lived in lofty stone houses surrounded by orchards and tanks. The overland trade declined only with the break-up of the Safavid empire and then the disintegration of the Mughal empire, which disturbed the roads. As an analytical point, these merchants were an Indian network in a larger Asian economy that European sea power did not displace in the seventeenth century, as seen in Overseas Trade and the Role of European Trading Companies.
Why Is This Topic Important?
- Network Indian trading colonies abroad
- Frontier link Why Qandahar mattered
- Decline cause Political break-up of empires
What Came Next?
The next topic describes the Mughal state’s relationship with commerce. Next topic: The Mughal State’s Relationship with Commerce.
Key People and Terms
- Multani Merchant of Multan
- Khatri Trading caste of the Punjab
- Caravan Group of traders travelling together
- Astrakhan City at the mouth of the Volga
- Khotan Oasis city in Sinkiang
- Gateway Entry point of trade
Exam Corner
Points to Remember
- Overland traders: Multanis, Afghans, Khatris.
- About 10,000 traders in Iran.
- Colonies at Baku and Astrakhan.
- Traders in Yarkand and Khotan.
- Decline with Safavid break-up.
Do Not Confuse With
- Multanis and Marwaris Overland traders versus coastal and western traders
- Kabul and Qandahar Twin gateways to Central Asia
- Overland and overseas trade Caravans versus ships
Memory Hook
Multan to Kabul to Baku and Khotan; the caravan runs till the empires break.
Mains Angle
Questions on overland trade ask about merchants, routes and decline. These points add depth.
- Merchants Multanis, Khatris, Afghans
- Routes Northwest gateways
- Decline Political disintegration
A Question You May Face
An original practice question, not a past paper question.
“Describe the position of Indian merchants in the overland trade of medieval India.”
How to Answer
- Carriers Multanis, Afghans, Khatris.
- Routes Kabul, Qandahar, Multan, Lahore.
- Reach Iran to Moscow and China.
- Decline Break-up of Safavids and Mughals.
GS Relevance
Frequently Asked Questions
Who controlled India's overland trade with Central Asia?
In the Sultanate period it was in the hands of Multanis, Hindu and Muslim, and in the Mughal period it was run by Multanis, Afghans and Khatris, with Lahore and Multan as the major centres of the trade.
Why were Kabul and Qandahar important for trade?
Kabul and Qandahar were the twin gateways of India's trade with Central Asia and the starting points of caravans going to China in the east and to the Mediterranean seaports in the west, so their control mattered greatly.
Where did Indian merchants settle abroad?
Indian merchants lived in Iran in large numbers, around 10,000, and spread to Bokhara, Samarqand and South Russia. They had colonies at Baku and Astrakhan, traded up to Moscow, and settled at Yarkand and Khotan.
What did Barani say about the Multani merchants?
Barani said the Multani merchants were so rich that gold and silver were found in abundance only in their houses, and that nobles had to borrow money from them each time they wanted to hold a feast.
Why did the overland trade decline?
The overland trade declined only with the break-up of the Safavid empire in Iran and the disintegration of the Mughal empire, which disturbed the roads and removed the political order that supported the caravan routes.
PYQ Practice — Statement Analysis
1 Indian traders had colonies at Baku and Astrakhan.
They traded up to Moscow.
2 Overland trade to Central Asia in Mughal times was led by Marwaris.
Multanis, Afghans and Khatris led it.
3 Kabul and Qandahar were the twin gateways to Central Asia.
Caravans started there for China and the Mediterranean.
4 Overland trade declined with the break-up of the Safavid empire.
The Mughal disintegration followed.
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