While it may seem counterintuitive, the increase in Mughal India’s maritime trade contributed to a tightening of overland commercial connections with its Asian neighbors. The primary agents in this process were “Multanis,” members of any number of heavily capitalized, caste-based family firms centered in the northwest Indian region of Multan. The Multani firms had earlier developed an integrated commercial system that extended across the Punjab, Sind, and much of northern India. In the middle of the sixteenth century, Multanis first appear in historical sources as having established their own communities in Central Asia and Iran. By the middle of the seventeenth century, at any given point in time, a rotating population of some 35,000 Indian merchants orchestrated a network of communities that extended across dozens, if not hundreds, of cities and villages in Afghanistan, Central Asia, and Iran, stretching up the Caucasus and into Russia.
Exchange rate pass-through in the Caucasus and Central Asia
