Trading as an activity was at its zenith during the Mughal period in India. The role of Geography was exceptionally crucial in the foundation of a trading town. How propitious geographical factors helped in the growth and development of a trading town in that period is the foremost focus of this paper. Assortments of factors were responsible for the growth of trade during that period. Among them geographical factors also played a key role. If a town was having a centripetal location, was near to a water body or had fertile soil or had a rich hinterland then it was considered apt for becoming a trading centre. Technology was not that advance as it is today so it becomes interesting to know how trading towns were affected by geographical factors.