1. Bombay was the commercial capital of colonial India. It was an important port on the western coast and a big centre of International trade. Half of the import exports of India take place through this by the end of the 19th century. 

2. Then, Opium was one of the important items of this trade. It was exported to China by the East India company. Indian traders and middle men were partners in this trade. They helped in integrating Bombay’s economy with the opium growing areas. They were Malwa, Rajasthan and Sind. 

3. Profit from the trade helped in the growth of Indian traders and other capitalist class. It was included the people of many communities – Parsi, Marwari, Gujarati Bania, Konkani Muslim, Bohra, Jew etc. 

4. Arrival of American cotton was stopped due to the American Civil war that was started in 1861. 

5. The demand of Indian cotton was increased. It was the great opportunity for Indian capitalists of Bombay for earing big profits. 

6. Due to the opening of Suez canal in 1869 the link of Bombay with European countries and economy came closer. Government and Indian merchants gained advantage from the opportunity. 

7. Bombay became as ‘Urbs Prima in India’. By the late 19th century Indian merchants were investing their money in industries like cotton mills. 

8. All these helped in the building of various activities of the city.