Before European intervention, the Indian subcontinent was a central hub in global trade networks. Indian fine cotton textiles were in great demand in Europe and beyond. Surat was a major centre of overseas trade in the western Indian Ocean. Traders from France, Dutch, Portugal, and local merchants all competed in Indian markets to secure goods.
Source: Chapter 3, Section 2.6; Chapter 4, Section 3.2
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The question asks why India was significant — focus on two points: (1) high demand for Indian fine textiles in Europe, and (2) India's geographic position as a trade hub (Surat, western Indian Ocean routes). The source passages explicitly mention these. Avoid writing about post-colonial decline; the question is about the pre-European-dominance period. Examiners expect specific textual evidence — naming Surat and fine cottons earns marks.