Why did the trade network controlled by indian merchants was breaking down by 1750 s ?
Answers
(ii)This resulted in the decline of the old ports of Surat and Hoogly.
(iii)Exports from the old ports fell dramatically and local bankers slowly went bankrupt.
Impacts :
(a) Weavers devoted entire time to weaving. They were forced to accept the prices fixed by the company.
(b) There were reports of dashes between weavers and gomasthas. The new gomasthas were outsiders. They acted arrogantly, marched into villages with sepoys and peons, and punished weavers for delays in supply. The weavers lost the space to bargain for prices and sell to different buyers
(c) Weavers deserted villages and migrated, setting up looms in other villages where they had some family relations.
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Answer:
The trade network controlled by Indian merchants was breaking down by the 1750's because by this time the British East India Company had had firm control over the local markets and the traditional trading markets were no longer in use.
Explanation:
During the 1750's the British East India Company had gained a lot of power both economically and politically, the Company had destroyed the local trade by imposing heavy taxes on the weavers who tried to sell their product to people other than the Company.
They imposed heavy taxes on the hand made products and they also had monopoly over the trade rights. The Indian merchants were subjected to heavy taxation and they were caught up in the cycle of loans and debts. In all such ways, the Indian merchants lost their control over the Indian markets to British East India Company.