The correct answer for this question is option 2, Internal trade. Internal trade refers to the buying and selling of goods and services within the boundaries of a country. In this case, the commodities manufactured in Surat are sold within the country, specifically in the cities of Mumbai or Delhi. This trade is considered internal because it is taking place within the same country.

Option 1, Territorial trade, refers to trade between different territories or regions within a country or between different countries. Since the trade in this scenario is occurring within the same country, it would not fall under this category.

Option 3, International trade, involves the exchange of goods and services between different countries. Since the trade in this scenario is happening within a single country, it is not international trade.

Option 4, Free trade, refers to trade that is conducted without restrictions or barriers such as tariffs or quotas. This option does not apply to the given scenario.

Therefore, option 2, Internal trade, is the correct answer.