India’s trade in ancient times was widespread and Indian merchants were smart enough to reach many foreign markets from South East to Mediterranean Sea. From a period prior to seventh century B.C, India had close trade relations with Babylon, Persia, Iran and Greece. The Indian cities like Kabul, Kandahar etc were the meeting points of Indian and Iranian traders. North Indian trade was largely conducted over land while South India depended more on sea for trade purposes.

North India looked towards central Asia, Greece and Arabs while South India went eastwards upto the far east.

India was a fertile land and it produced many precious spices like pepper. It was also very rich in many materials which other countries lacked. The surrounded sea acted to the advantage of India as India sent these materials abroad through sea. India obtained many materials from the south eastern areas and sent it to Persian Gulf and profited extensively as a merchant carrier.

India is the oldest producer of clothes. From the earliest times India had been manufacturing different types of fabrics. Textile industry had developed in India much earlier then it developed in any other country. Indian textiles were used in far off countries like Egypt,  Persia, Greece, Iran, Malaya, Burma and the far-east. Silk was produced in India very early and it was also imported from China and was exported to other countries after being refined in India. Although Indian silk was not as developed as that of China, India largely benefited from the import and export of silks.

Dyeing of clothes as an act was known to India earlier than any one else. Special methods were discovered and developed for the preparation of fast dyes. The colour Indigo was produced in India in large scale which helped in the development of flourishing dyeing industry in India. It was probably this knowledge of dyeing that gave an impetus to India’s trade with foreign countries.

Chemistry in India during ancient times, was more advanced than any other country. Chemistry was however closely allied to alchemy and metallurgy. Nagarjuna was a famous chemist and metallurgist of India in ancient times. The use of chemicals in the textile industry gave India an edge over other countries producing clothes. India produced many minerals in ancient times, prominent among them being  Iron.

 India had mastered the technology of tampering steel and iron. Indian iron and steel were valued high abroad. India was producing and exporting iron made weapons used specially in warfare. Many other metals like gold, silver, copper etc were used as compounds of Ayurvedic medicines. The science of medicine was quite developed in India and it earned a lot of foreign coins by trading these medicinal products abroad.

India had attained authority in ship building those days, which was a flourishing industry in Eastern and Southern India. India also prepared various kinds of ‘machines’ used for  warfare purposes.

India was ahead of many other countries in the making and use of tools in the field of chemistry and metallurgy which gave India an advantage and enabled it for centuries to control a number of foreign markets.

The fertile soil of India enabled Indian farmers to produce a number of crops, major being rice, wheat maize and barley, the surplus of which was exported to both central Asian and Far East countries. Indian timbers and bamboo products had got wide acceptance abroad. The baskets made up of bamboo and wooden particles were manly used for carrying crops and keeping household goods. Indian pottery items were sent as far as Mesopotamia and Persia.

The caste system in India which encouraged division of labour and occupational specification led to a large scale production of skilled handicrafts which were marketed in far off countries. Besides exports, India also imported a lot of items especially cotton and silk. India earned a good amount of foreign coins by importing spices from the Far East and marketing it in the Persian Gulf. Indian traders also exchanged those coins with many materials found in the foreign markets. Because trade was largely at that time based on give and take principle.

India’s knowledge in astronomy coupled with astrology gave India an advantage to venture into the sea as they could predict the weather and waves of the sea well before they sailed.      India’s foreign trade in ancient times and control over foreign markets was much more widespread than now.