Before independence India had extensive trade relations with other countries of Asia and Europe. India’s exports were cotton textiles, raw silk, and silk fabrics. Indigo, rice, wheat, sugar, Pepper and spices, precious stones.
Lac, mica, opium, and drugs Imports consisted of pearls, Wool, dates, dry fruits, glass, iron and steel, copper, lead, tinhorn paper, perfumes, etc., The cotton textile of India enjoyed a worldwide reputation and the demand for cotton textiles was all over the world. India exported more than it imported it had a favorable balance of trade, large quantities of gold and silver flowed into India. India enjoyed a very important and unique position in world trade.