This chapter first outlines the institutional changes relating to trade, which followed from the change of government in 1757, and then examines those particular features of Indian overseas trade which distinguish it from later development. The trends and fluctuations in India's overall foreign trade can be classified into two main components: changes, both relative and absolute, in the demand for commodities, and those relating to the geographical distribution of trade. The chapter argues that the changes in the commodity composition of Indian exports were the induced effects of factors operating through demand. Perhaps no other subject connected with India's international economy has generated so much controversy as the commercial and tariff policy pursued first by the East India Company and then the Indian administration under the Crown. The chapter discusses the mechanism which kept India's balance of payments and foreign exchange rates in equilibrium, given the unilateral transfers.