1. HISTORY OF TRADE AND COMMERCE
India has Himalayas in the north, bordered by water in south India got connected to adjoining foreign countries through the network of roads leading to Silk Route. The maritime routes linked the cast and west by sea and were used for trade of spices,
known Spice Route. The progress of domestic and international trade in ancient India developed due to flow of wealth through these routes Many trade centres and Industrial Beit also started.
Archaeological evidences have shown that trade and commerce was the base of the economy of ancierit India. The trade was mainly carried out by water and land. The civilisations like Harappa and Mohenjodaro had established commercial connections with Mesopotamia and traded in gold. silver, copper, coloured geistones, de
The period was marked by substantial commercial activities and urban development There were some tride regulations, different types of coins and weighing practices Later on some common acceptable weights and measures were developed
1.1 Indigenous Banking System
With the progress of economic life following development took place.
1. Metal coin became common medium of exchange
2 Documents such as Hundis and Chitti were used for buying and selling on credit.
3 Handi became very popular Hundi involved a contract which-
- Warranty the payment of money. It indicated an unconditional promise.
- Could be transferred through valid negotiation.
- Different types of Hundis as used by Indian merchants.
4. Development of Indigenous banking system.
This played a special role
- People began to deposit precious metals with lending institutions acting as bankers of seths
- These bankers and seths became an instrument for supplying money for producing more goods
- Indigenous banks played a special role in lending money and financing domestic trade
- Agriculture and Domestication of animals also help to generate surplus and savings investment.
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