Amritsar as a Centre of Trade

The Kashmir famine of 1883 caused a further influx of Kashmiri Muslims to the city. There was a paralleled growth in terms of trade and commerce as well as the spread of the city. With the arrival of the Kashmiris, the carpet trade began to flourish in Amritsar after the 1880s. Wool played an important role in terms of exports at the time. Amritsar also became the primary centre of trade in India of grains and flour in the twentieth century. In addition, Amritsar became an important manufacturing centre for textiles, leather and iron and steel work right up until 1947.

In terms of city growth, the entire area north of the walled city was developed by the British. Amritsar's location along the trade route of the Grand Trunk Road made it a prime location for colonial administrative units, providing a route to other parts of Punjab and the sub-continent.