During the early part of the seventeenth century (1600-1635), fundamental changes were occurring in Iran. These included: an increased monarchical centralization, structural changes within the bureaucracy, and a growing reliance upon new elements in the army. Accompanying these changes, there appears to have developed a coordinated and integrated economic policy designed to adapt to, and assist in these internal changes.

The focus of this research is to examine the internal changes occurring in early seventeenth-century Iran in light of a re-directed interest in trade and diplomacy. It was no accident that Shah 'Abbas made a determined effort to expand Iran's role as a trading intermediary and entrepot. Likewise, accommodations with the Mughals and various European maritime powers had the goal of consolidating Safavid absolutist designs. Seventeenth-century Iranian diplomatic/trade history needs to be internalized rather than seen as an appendage of European commercial/diplomatic activity. An examination of the indigenous regional sources readily lends itself to such an interpretation.

This thesis considers: (1) the literature of the trade; (2) a historical perspective of the trade; (3) an examination of royal correspondence and relations between the Safavids and the Mughals; (4) the role of Qandahar in trade and diplomacy between Iran and India; and (5) a conclusion that attempts to synthesize some basic findings and to offer some possible areas for further study.