In what ways is a market – such as a weekly village market – a social institution?


Solution:India had substantial trading connections, both within and beyond the country, from the precolonial period onwards.These trading connections were established by merchant groups that engaged in extensive internal and external trades, and who were mostly organized as a community based on their common caste or kinship, and who conducted business on the basis of trust, loyalty, and understanding that existed within their community.

The banking and trade activities of Tamil Nadu’s Chettiars provide a fascinating example of how they utilize traditional joint family structures, kinship, and caste networks to grow their company. In the nineteenth century, they controlled trade and banking throughout Southeast Asia and Ceylon (modern Sri Lanka), and they now operate as a combined family firm. This is a conventional patriarchal joint family structure, yet they built their bond through trust, togetherness, and kindred kindness. This provides the impression that Indians had their own sort of capitalism when they conducted for profit businesses based on caste and kinship.

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