Friday November 16, 2018
Home India Ancient India...

Ancient India Maritime History: Trade Links With Europe and Southeast Asian Nations

Excavations Provide Evidence About Ports that Played a Major Role in Overseas Trade in Past

1
//
Ancient India maritime route
Ancient Indo-Oman maritime trade route. Wikimedia
Republish
Reprint
  • The maritime history begins from the 3CE when the Indus Valley people initiated trading contact with Mesopotamia
  • Tamil Nadu being a coastal state had more than 16 ports across Chennai which had trade links with China, Egypt, parts of Europe
  • Presently in Tamil Nadu, a deep-sea port has been proposed in Enayam which would emerge as a major port for Indian cargo to be exported

June 27, 2017:

Before the incipience of air transport, mankind was dependent on sea links for transportation and trading of goods between continents. Sea was the major form of transportation in the past and even though people still use the sea for transport, most of the trading is now usually done through the air transport.

As we look back in time, the ports were the busiest place to be, because sailors were the only people who could get you and your goods across countries. In India too, we had ports down on the southern region so that we could access trade with all over Europe and Middle East countries.

The Ancient India maritime history begins from the 3CE when the Indus Valley people initiated trading contact with Mesopotamia. Indian Silk was one of the most traded product but later on, Indian spices took hold of most of the trading to the West surpassing Silk.

Tamil Nadu being the coastal state had more than 16 ports across Chennai and Tirunelveli which had trade links with China, Egypt, parts of Europe and South-east Asian countries. Archaeologists say ancient Tamil literature and excavations provide evidence about the existence of such ports that played a major role in overseas trade in the past.

C Santhalingam, the secretary of Pandya Nadu Centre for Historical Research told that these sea routes in Tamil Nadu can be traced to the Sangam Period which was from (3CE BC to 3CE AC) and said, “The historical coastal town of Kaveripoompattinam (Poompuhar in Nagapattinam district) recorded import of horses from Arab countries and finished goods from Indonesia and Sri Lanka. The port was also a major centre for the export of spices from South India.

Ancient port was built differently from the modern ports which are at the coastline as they were situated over the river mouths because the transporting ships in the past were not as big as the ones now, so the river mouths were the right places for safe docking of the ships.

Presently in Tamil Nadu, a deep-sea port has been proposed in Enayam in Kanyakumari district which would emerge as a major port for Indian cargo to be exported. The proposed budget for this port is 27,570 crore and the port would act as a hub for the global east-west trade route and also reduce the logistics cost for Indian traders dependent on transhipment in Colombo and Singapore giving rise to maritime link jobs.

prepared by Sumit Balodi of NewsGram. Twitter: @sumit_balodi

Click here for reuse options!
Copyright 2017 NewsGram

  • Jai Rajkumar

    BEFORE THAT TAMILS SAILED ALL AROUND THE WORLD. TAMILS ARE THE FIRST SAILORS O THE WORLD

Next Story

Latest #IGForexChat Reveals How Brexit Negotiations Are Affecting the Forex Markets

How close is the UK to finalising a deal with the EU? Only Theresa May and Michel Barnier truly know the answer to that.

0
Brexit
French noted that investment in UK assets and stocks is “waiting in the wings” to find out what those barriers will be. Pixabay

With the UK due to formally leave the European Union (EU) in less than six months, Brexit negotiations are reaching a nervous climax.  Hopes remain that the UK government will secure a deal with the EU by the end of the year, but what impact are the Brexit talks having on the forex markets? How far could the pound fall if there is no deal reached? Would the pound be affected by a vote of no-confidence within the Conservative Party and Prime Minister Theresa May being replaced?

The latest #IGForexChat outlined the potential ramifications of Brexit negotiations on forex markets. IG’s Sara Walker interviewed two leading forex experts, chief economist Simon French and market analyst Nicholas Cawley, to help forex traders understand the implications of a hard or soft exit from the EU.

If you don’t have time to watch the entire interview, here are the main talking points as to whether forex traders should buy or sell sterling in the markets in the coming months:

Brexit
May’s spokesperson said both the Prime Minister and the Brexit secretary, David Davis, said the government would be robust when the EU withdrawal bill returned to the House of Commons after completing its passage in the House of Lords. Pixabay
What will happen to the pound if we reach 31st March 2019 without a Brexit deal?

Nicholas Cawley insists that it is highly likely that the UK government will know if a Brexit deal can be reached by the end of the year. Cawley said there will undoubtedly be “clear signals” ahead of the EU’s December meeting as to whether a deal is achievable.

According to Simon French, the UK parliament will have an influential role if talks move into the New Year. French believes January will be a crucial month for parliament as the amendments within the UK’s withdrawal bill will need approval. If the majority of MPs cannot agree on the bill, they will have the right to propose a “meaningful vote”. French believes this vote could “ask the government to go back to the negotiating table” and attempt to “extend Article 50”.

French also believes it is unrealistic to expect the price of sterling to be priced on a hard Brexit “until midnight on March 29th”.

In a Tuesday radio interview International Trade Secretary Liam Fox said it was not acceptable for the unelected House of Lords to try to block the democratic will of the British people, who voted by a 52-48 margin in June, 2016 to leave the EU.
The Independent newspaper Tuesday night reported that May was preparing for a Brexit meeting with select cabinet ministers Wednesday at which they will try to come up with a joint position on post-withdrawal customs relations following rejection of Britain’s existing proposals. wikimedia commons
How far could the pound fall against USD and EUR in the event of no deal?

French pointed to historical analysis of previous peaks and troughs of sterling against the US dollar. The IMF bail-out of the UK in the 1970s and Lehman Brothers/Northern Rock in 2008 resulted in “20-25%” declines, leaving the pound in the “high teens” i.e. $1.17-$1.20 to the pound. French believes a hard Brexit is “no more material than those previous events” and, as such, the pound could experience a similar decline next March.

On the subject of whether the pound will end up in parity with the euro, Cawley was quick to dismiss those claims.

How will Brexit affect the pound during the transition period?

Cawley was quick to predict that, if an extension to the UK’s transition period after leaving the EU is agreed, “it will initially weaken sterling”. However, he suggested that an extension may prove useful to some business sectors that may need that time to “get their house in order”.

On the flip side, Simon French is “slightly more bullish” about the transition period. He believes the expected discussions about a free-trade agreement will eventually uncover “the materiality of what trade barriers will look like” between the UK and the EU. French noted that investment in UK assets and stocks is “waiting in the wings” to find out what those barriers will be. He believes that, once clarity is achieved in the “Treaty text”, it will be easier to price things correctly.

Brexit,  Image source: www.catholicherald.co.uk
Representational Image, Brexit.
Will the pound be affected by the replacement of Prime Minister Theresa May?

On the subject of the value of the pound being influenced by the departure of Theresa May as Prime Minister, Nicholas Cawley believes sterling “would take it quite well” and that the price “wouldn’t go down”.

Cawley was quick to temper that by saying it would ultimately depend on the “favourite” candidates to replace her. He said that the prospect of Boris Johnson would be “hated” by many in the markets, yet a more “progressive” candidate such as Sajid Javid would be viewed more positively.

Are further interest rate hikes likely from the Bank of England?

Nicholas Cawley believes there is “no reason to push interest rates up at the moment”, despite inflation reaching 2.4% this year. Furthermore, Cawley finds it hard to believe that the Bank of England would dare consider raising interest rates in the event of a hard Brexit.

Both Cawley and Simon French expect little to happen on the subject of interest rates until May 2019, when the Bank of England “may start giving some signals” based on the first quarterly inflation report after the UK leaves the EU on 31st March.

Brexit
Brexit (Representational IMage) Image source: The Street

Interestingly, French suggested that the Bank of England could yet consider a rate hike “as early as February” with the ECB’s rate policy seemingly rigid and President Trump reportedly wanting the Fed to “go at a slower rate”. French believes this would encourage investors to “buy into sterling”.

How close is the UK to finalising a deal with the EU? Only Theresa May and Michel Barnier truly know the answer to that. French noted that “the history of the EU negotiations” would suggest that the Brexit talks will inevitably “go down to the wire”. Whichever way the scales tip, the forex markets are sure to be a fascinating place to be in the coming months.