Step 1: Understanding the Assertion.
During the sixteenth century, the Indian Ocean emerged as one of the world's busiest trade networks. The Indian subcontinent occupied a strategic geographical position at the centre of this maritime trade system. Merchants from East Africa, the Arabian Peninsula, Persia, Southeast Asia, and Europe visited Indian ports such as Surat, Calicut, Cochin, and Masulipatnam. India exported cotton textiles, spices, indigo, silk, sugar, precious stones, and handicrafts, making it a major commercial centre. Therefore, the Assertion is correct.
Step 2: Understanding the Reason.
India's geographical location between the eastern and western parts of Asia made it a natural bridge connecting Europe with Southeast Asia and the Far East. Ships travelling from Europe to Asia generally passed through the Arabian Sea and the Indian Ocean, where Indian ports served as important trading centres. This advantageous location enabled India to become a major hub of international trade. Hence, the Reason is also correct.
Step 3: Relationship between Assertion and Reason.
The geographical position of the Indian subcontinent was the primary reason for its importance in the Indian Ocean trade network. Since the Reason directly explains why the Assertion is true, both statements are correct and the Reason is the correct explanation of the Assertion.