A version of this essay was published in the Encyclopedia of World Trade published by ME Sharpe Publishers, Armonk, New York.

Surat © Anup Mukherjee

Surat is situated on the Western Coast of Gujarat, on the left bank of river Tapti, on the Gulf of Cambay (Khambhat). It has been a very important centre of trade and commerce. Although the city is considered ancient, being associated with the folklores of Lord Krishna, the present day Surat came to prominence during the medieval times. Previously, the nearby Rander, on right bank of Tapti, was the principal commercial centre south of Bharuch. Surat emerged with decline of Rander. By sixteenth century, Surat became an important city for its port and trade. Surat passed off into Mughal hands in 1573. During the Mughal times, it was India’s gateway to the annual Haj pilgrimage to Mecca. The port of Surat enjoyed prosperity especially from the sixteenth to the eighteenth century. Surat emerged as one of the major centres of world capitalism.

Though the Portugese trading company had no settlement here, they controlled the nearby Diu and Daman. From there they enforced their cartaz system on the local ships on the sea. This led to their controlling the trade from Surat. The cartaz system was sort of pass for safe passage for which the merchants had to pay the levy. Any ship that fell into the Portuguese hands, and did not have the cartaz was confiscated. Free cartaz were given to the Indian rulers. Akbar also obtained one from the Portuguese Viceroy of Goa. Apart from this the Portuguese prohibited the movement of munitions, spices, pepper, iron, copper, and wood to the Turks and Ethiopian Muslims.

At political level, Akbar was not satisfied with the Portuguese, but did not engage them militarily. However the relation between Mughals and Portuguese deteriorated particularly in 1613, when the Portuguese seized four imperial vessels near Surat. In this regard, the Mughal governor of Surat was ordered to take action against the Portuguese. As navy was the weak point of Mughals, help of the British was taken to inflict defeat on the Portuguese, and the privileges granted to Portuguese were withdrawn.

With emergence of the British and the Dutch in the Indian Ocean trade, the Portuguese superiority on the seas was undermined. Infact, the coming of Dutch and British to extend their trade to Gujarat was welcomed in order to break the Portuguese monopoly. The new emerging powers now gained access to India. They were granted permission by the Mughals to set up their first factory in Surat. The British (1613) and Dutch (1617) started by opening their factories in Surat. Later on French also opened their factory here in 1664. These factories were not manufacturing factories, but were warehouses and trade settlements.

Surat had a developed credit market. This functioned through brokers. Every businessman, big or small, operated through these brokers. Also, a complex interplay of caste relations went into the trading and financing structure. Various communities like the Baniyas, Jains, Bohras, Sarrafs etc would participate in it. Among the Indian traders of Surat, there was Virji Vora, who during the first half of seventeenth century engaged in banking, shipping and trade. Even VOC, the Dutch Company, would raise finances from him. Another figure was Abdul Ghaffur. He was the largest merchant during the latter half of seventeenth century. He owned over twenty ships with huge carrying capacity that was comparable to the European concerns at Surat. His trade extended from Manila to Mocha. The other Indian trades owned lesser number of ships. Some ships were also owned jointly. Indian shippers had their agents in overseas trade centres like Bander Abbas, Basra, Malacca, Acheh, Bantam etc. By 1650, Surat had fifty ocean going ships. By turn of seventeenth century, this number had increased to 112.

By seventeenth century, Surat had become more important than the other two seaports on the Arabian Sea viz Lahri-Bandar on the Indus and Dabhol in Konkan. Surat served as the terminus to the hinterland that was connected by the road through Malwa via Burhanpur.

During latter half of seventeenth century, Surat was conducting trade with Siam. Indian textiles were sent to Ayuthia, the traditional capital of Thailand, and brought back tin. Surat also had trade relation with China. Though the Chinese trade had earlier suffered due to toppling of Ming dynasty, by 1690, Surat was able to develop regular trade relation with Canton. At the same time, its trade with Persia and Mocha continued.

The growth of Bombay and decline of Surat were simultaneous. Now, Surat no longer retains its importance as a seaport. However, it continues to be an important industrial centre of manufacture of textiles, chemicals, gold and silver works, and processing of diamonds.

Bibliography:

1) The World of Indian Ocean Merchants 1500-1800: Collected Essays of Ashin Das Gupta (New Delhi: Oxford University Press, 2001)
2) Ashin Das Gupta, Indian Merchants and the Decline of Surat 1700-1750 (Delhi, 1994)

Click here to print.