What was the state of internal and foreign trade of India during the British rule in India?

India had extensive trade relations with countries of Asia and Europe. The principal exports were cotton textiles, silk and silk fabrics, indigo, rice, wheat, sugar, paper, spices, stones, mica, opium and drugs. The main imports were pearls, wood, dates, dryfruits, steel, copper, lead, tin, horses, perfumes etc.

The disappearance of the Mughal Courts led to a decline in the demand for handicrafts, lack of development of means of transport and communication limited the extent of the market.
India exported more than what it imported from other countries of the world. It had a favourable balance of payment position. Large quantities of gold and silver flowed into the country.