.

             In spite of the fact that the Indian villages were largely self-sufficient units and the means of communication were primitive, India enjoyed extensive trade both within the country and with other countries of Asia and Europe. A balance of the imports and exports was maintained. The items imported into India were pearls, wool, dates, dried fruits and rosewater from the Persian gulf; coffee, gold, drugs and honey from Arabia; tea, sugar and silk from China; gold, musk and woolen cloth; metals like copper, iron and lead, and paper from Europe. The main items exported from India were cotton textiles. Besides cotton textiles, which were famous throughout the world, India also exported raw silk, indigo, opium, rice, wheat, sugar, pepper and other spices, precious stones and drugs. "The lucrative and risky long-distance trade and maritime trade were well financed. Rich merchants as well as high officers and princes participated in these ventures." (Rothermund, page 5). The major features of Indian trade in pre-colonial times were (i) a favorable balance of trade and (ii) a foreign trade most suitable to the level of manufacturing in India. A favorable balance of trade meant an excess of exports over imports, i.e. India exported more than it needed to import. Since the economy was on the whole self-sufficient in handicrafts and agricultural products, India did not need foreign imports on a large scale and continued to enjoy a healthy trade. Secondly, India's foreign trade suited its requirements very well. In other words, the commodity pattern, so important to any country's foreign trade, was in India's favor. India exported the items it specialized in and imported the ones it needed. .

             As discussed above India was a land of extensive manufactures. Indian artisans were famous for their skills the world over. In fact the reason for India's favorable foreign trade was its excellence in indigenous production.