Final answer:
During India's Vedic Age, trade resulted in economic benefits such as the influx of precious metals, flourishing of handicraft industries, and cultural exchange. Despite the complexity of trade deficits and surpluses, the overall benefits of trade are evident in the form of infrastructure developments and cultural diffusion.
Step-by-step explanation:
The benefits of voluntary trade during India's Vedic Age were significant and multifaceted. Trade, especially international trade, brought in gold and silver in exchange for India's textiles, spices, and precious gems. The handicraft industries flourished under the surge of commerce, leading to economic prosperity for merchants. Furthermore, the peasants, although they were taxed, had the relief of not being taxed in full during times of natural disasters, adding a social safety net of sorts. As trade evolved, a common system of stone cubical weights was used for bartering, which also facilitated the assessment of taxes in kind.
Improvements in shipbuilding and textile manufacturing were direct consequences of the trading during this period, stimulating coastal trade and leading to significant cultural and technological advancements. Even during unstable political times, the diffusion of ideas and practical innovations continued, in part, because of the trade dynamics of this age. Connections with different parts of the world also meant that Indian society and culture had a more extensive influence, thanks to traders spending longer periods in India due to monsoon winds influencing travel schedules.
In short, trade deficits and surpluses have a complex relationship with economic wellbeing, as demonstrated by India's history with Great Britain. India's trade surpluses did not necessarily translate to economic dominance over Britain but resulted in infrastructure improvements like roads and railroads, illustrating the potential benefits of trade despite imbalances.