Lothal was an important city of the Indus Valley Civilization, built around 2400 BCE in present-day Gujarat. It is famous for having one of the world’s earliest known dockyards, showing that the people of Lothal were skilled traders and engineers. The dockyard allowed ships to move goods between the city and the sea, linking Lothal with distant regions such as Mesopotamia. Archaeological finds including seals, beads, pottery, and standardized weights show that trade and craftsmanship were well organized. The city had straight streets, efficient drainage, warehouses, and designated work areas. Lothal reflects the advanced planning, maritime knowledge, and commercial sophistication of the Harappan civilization.
Source: Upinder Singh
Picture Credit: Harappa.com

The Naneghat trade route was one of the most important ancient passes linking the Konkan coast with the Deccan plateau. Active from at least the 2nd century BCE, it enabled the movement of goods such as spices, cotton, grain, metals, and horses between inland markets and coastal ports. The route gained prominence during the Satavahana period. A distinctive feature is the carved stone toll-collecting pot, into which merchants deposited payments while crossing the pass. This shows an organized system of trade regulation and state revenue collection. Inscriptions at Naneghat record royal titles and donations, linking trade, governance, and religion.
Source: D. C. Sircar, Select Inscriptions Bearing on Indian History and Civilization

The Arthashastra, attributed to Kautilya (Chanakya), is a foundational text on wealth creation and governance. It treats prosperity as essential for social stability and moral life. The text explains that wealth should be generated through agriculture, trade, mining, industry, and taxation, under fair state supervision. It supports organized markets, guild-based production, and investment in infrastructure such as roads, irrigation, and ports. At the same time, it strongly condemns corruption, fraud, hoarding, and exploitation. The ruler is described as the protector of farmers, artisans, traders, and consumers, ensuring economic justice and public welfare.

The famous Pompeii Lakshmi is a small ivory sculpture, about 10 inches tall, found in a wealthy Roman household when Pompeii was excavated in the 1930s. It was discovered along with other Indian artefacts, indicating active trade between India and the Roman world. The sculpture resembles figures from Sanchi, and a single letter “si” is carved at the base in the Kharoshthi script. Archaeologist M. K. Dhavalikar suggested it was produced in a Satavahana-period town engaged in Indo-Roman trade. Today, it is displayed in the Naples Museum in Italy.
Source: Sudeshna Guha, A History of India Through 75 Objects

Guilds were associations of merchants and artisans who regulated trade and professional conduct. Known as Srenis in ancient texts such as the Arthashastra and Jatakas, they controlled quality, prices, training, and ethical standards. Guilds also provided credit, welfare, and social security. The Mahajans of Ahmedabad were powerful merchant guilds that resolved disputes, financed infrastructure, and supported religious institutions. Ayyavole, also called Ainnurruvar (the Five Hundred), was one of the largest merchant guilds of medieval India, active in long-distance and overseas trade. Together, they illustrate India’s strong tradition of collective enterprise.
Source: IIT Gandhinagar – Guilds in Ancient India

Several Indian merchant families such as Khatris, Chettiars, Bohras, Memons, and Jains functioned as bankers and moneylenders to kingdoms. They used the hundi system to transfer funds across regions. The Nandlal Sahu family of Bengal were given the title Jagat Seth (World Banker) by the Mughals. They played a decisive role in politics through moneylending. A family dispute with Nawab Siraj-ud-Daulah led them to support Clive and Mir Jafar at the Battle of Plassey in 1757. A French observer famously wrote that the Jagat Seths were “the originators of the revolution.”

The Tata family rose as cotton traders in Bombay during the American Civil War. Unlike many contemporaries, Jamsetji Tata reinvested profits into industry. He founded cotton mills in the 1870s and envisioned steel and power projects. Though Jamsetji died in 1904, his vision was realized by Sir Dorabji Tata through Tata Steel. British skepticism turned to dependence during World War I, when Tata steel and rails proved vital to the war effort.

Trade shifted to Bombay (Mumbai) from Surat after Mughal power declined. Forbes & Co was the first British firm in India. India merchant princes like Jamshetji Jeejabhoy, Premchand Roychand & the Jewish Sassons also grew. The opium trade with China and cotton boom flooded Bombay with easy money. Reclamation became a rage. Several companies obtained license to reclaim land. Their share prices rose spectacularly. Banks lent money to these firms against their shares.
However, the cotton prices crashed once the American civil war ended. This led to a crisis, share prices crashed and banks collapsed. Most of the incumbent merchants lost their fortune except the Sassoons. New businesses like Tatas, Wadias, Birlas, Godrejs, Mafatlal etc rose after the crisis. The Wikimedia image shows a depiction of the Bombay share market in a London newspaper from 1865.

Dwarkanath Tagore was a key figure in Rajmohan Roy’s Brahmo Samaj. He was the first Indian to partner equally in a British firm (Carr, Tagore & Co). At that time Indians had been limited to mid-manager roles called ‘banias.’ He and Motilal Seal incubated many businesses. There was a collapse in 1840s due to poor management and speculation. This failure led to native business families shunning industrial ventures. The fearless Prafulla Chandra Ray (Bengal Chemicals) revived Bengali entrepreneurship decades later. Rabindranath Tagore was Dwarkanath’s grandson. He hardly mentions him in his writings. He was perhaps put off by his flamboyance and grey ethics! The Wikimedia image shows FB Carpenter’s 1840 oil painting of Dwarkanath Tagore

Indian businessmen had divided sentiments about the British Raj. They protested unfair regulations but still professed loyalty to the Raj. JN Tata even said “(Parsis) have benefited more than any class by English rule.” But nationalism slowly took root. Tatas called their first large cotton mill ‘Empress Mills’ but the second was named ‘Swadeshi Mills.’ Many new business houses like Godrejs, Birlas, Bajajs, Kirloskars, Walchands etc. were inspired by the freedom struggle. There was a sentiment that a nationalist Bank would help Indian businesses. Influenced by the Arya Samaj, Lala Lajpat Rai & Harkishan Lal set up Punjab National Bank in 1894. It was a shareholders’ bank with no single family in control. The experiment proved contagious. Indian Bank and many other Indian promoted banks followed in the early 20th cent.

India has a long ship building & seafaring tradition. In the colonial period, British controlled shipping entirely. Even then, Mazgaon in Bombay built excellent wooden ships. They were based on the sturdy Vasai & Malabar timber which was as good as English oak ships. But the British used fair or foul means to keep Indian merchants at their mercy. JN Tata failed in his endeavor to set up a shipping company. The Chennai nationalist VO Chidambaram Pillai’s shipping company was destroyed ruthlessly. In this scenario, Walchand Hirachand started a shipping company. He bought an old ship from the Scindia royal family (thus the company’s name). The British tried their tricks but Walchand persevered. The British then entered into an agreement with Walchand. The Scindia Shipping somehow emerged unscathed at independence. A grateful Republic honoured his contribution.

Dhirubhai Ambani began his career as a petrol pump attendant in Aden. He noticed that local silver coins contained more silver than their face value. By buying and melting them, he made his first profits. This early venture revealed his sharp business instincts. He later founded Reliance, democratized shareholding in India, expanded textiles, and built one of the world’s largest oil refineries at Jamnagar. His sons further diversified the group into technology, retail, and infrastructure.
Source: Too Big for India, The Economist, 2011