Abstract
Historiography has long recognized the strategic importance of Diu as a commercial hub in the Indian Ocean, despite the decline it experienced in the last quarter of the seventeenth century. A great deal of Diuese commerce, along with the island’s privileged connections with East Africa (especially Mozambique), was sustained by the activity of the Banias—Hindus and Jain—who had long used this small island as a platform for trade. This article analyzes the forms of organization, commercial and financial techniques, and main roles of the Banias of Gujarat, one of the largest and most important urban merchant communities in India and in other Asian and African markets along the Indian Ocean. In the case of Diu, we seek to understand the extent to which the financial capacity and commercial experience of the local Banias allowed them to dominate most commercial activity in Mozambique from the late seventeenth century onwards. We examine the internal structure of the Banias’ merchant communities, the hierarchical dependencies and trade links between the Banias of Diu and of Mozambique, and, lastly, the adaptation of their experience and commercial techniques to the East African coast.