India was prosperous even during the medieval period from 12th to 16th centuries despite political upheavals. Balban was the first sultan who paved the way in the dense forest and helped traders and their commercial caravans to move from one market place to others. Allauddin Khilji brought the price to a very low ebb. He encouraged import of foreign goods from Persia and subsidised the goods.
Arabs were dominant players in India’s foreign trade. They never discouraged Indian traders like Tamils, Gujaratis, etc. The trade between the coastal ports were in the hands and Marwaris and Gujiratis, The overland trade with central and west Asia was in the hands of Multanis who were Hindus and Khurasanis who were Afghans, Iranians and so on.