Economic Life

Saturday, February 4 2012, 12:47 AM

Harappa Culture
Agriculture

1. They used to plough their fields using wooden plough. Evidences come from early Harappan levels of
Kalibangan and from the terracotta plough models recovered from Banwali.
2. They used irrigation systems and built embankments in Baluchistan. Irrigation canals have been discovered in
Shortugai.
3. The discovery of seawater fish bones in Harappa suggest that marine settlements used to trade fish with
Harappa.

Arts and Crafts

1. The Harappan pottery was wheel turned, mass produced. It was black on inside and red outside and painted
with black in designs of animals, fish, plants, geometry. The rim was thicker for ease in lifting and bottom had
additional clay as well.
2. Terracotta working was a major craft. Apart from figurines, terracotta masks and faience bangles have been
found.
3. Stone working was important. Dholavira was an important centre for stone masonry and stone pillars were built
there. These pillars were polished.
4. Copper and bronze working were important crafts. Yet metal tools were considered precious and were stored
in hoards. Gold and silver making were important too.
5. Seal making. Most seals were square or rectangular and were made of steatite.
6. Bead making out of precious stones, metals, terracotta.
7. They made cotton and woolen textiles as can be deduced from the images wearing clothes. Mesopotamia
mentions cotton as one of the imports from Meluha.
8. Weights and measures were standard.

Trade and Commerce

 1. Stone tool factory sites have been found in Rohri Hills in Sind which indicate they used to trade it with other
settlements. Copper, lead, zinc was traded out of Rajasthan. Tin may have come from Afghanistan and Central
Asia and gold from Kolar or sands of Indus.
2. Two wheeled carts were important means of transport. Animals of burden and boats were also used to carry
goods.
3. The geography and distribution of resources can give an indication of trade routes. Punjab --> Cholistan -->
Rajasthan. Baluchistan --> Kirthar Mountains --> Sind. Afghanistan --> Gomal Valley --> Multan --> Taxila.
Sea route Lothal --> Sutkajendor.
4. Foreign routes: Trade with Central Asia is evident from the discovery of Harappan objects in Turkmenistan
(including one containing the script). Shortugai indicates trade with Afghanistan. The Gomal trade route was
important. Harappan seals have been found in Bahrain and Mesopotamia. But the less number of Harappan
items in Mesopotamia and the absence of Mesopotamian seals in Harappa indicates Mesopotamian traders
were not directly involved in Harappan trade.

Pre-Mauryan Period
Trade Routes and Centers
1. Shravasti was linked with both Kaushambi and Kashi. Another route connected Shravasti with Kushinara and
Kapilvastu and up to Vaishali. At the confluence, traders crossed Ganga at Patna and went south towards
Rajgriha. If they continued east, they reached Champa.
2. Third route was from Mathura to Taxila. Another route was from Mathura to Kaushambi to Ujjain via Vidisha
and Tripuri and then to Gujarat coast. (Source: Pali texts) From Ujjain it branched off to Pratisthan. Mathura
was connected to Taxila.
 3. Important ports were Tamluk, Bhrigukachcha, Sopara, Champa. Much of the trade was carried in luxury items
only.

Role of Iron in Urbanization

1. Earlier iron was used mainly in weapons and not in agricultural implements. But the use of iron in weapons
increased the power of kshatriyas (as it gave them stronger weapons) vis a vis others and now they could
compel the peasants to part with agricultural surplus. Thus the large states and also urban centers came up.
2. That agriculture and iron are not sufficient conditions to bring up urbanization can be seen from the fact that the
megalithic cultures had both and yet failed to produce cities. Mechanism must exist for the transfer of this surplus
into few hands and then subsequent redistribution.
3. Early texts point to early urbanization when they talk of villages specializing in particular crafts or acting as
exchange centers on important routes. Then another pointer to urbanization is a hierarchical ordering of the
settlements. At the city center the palace or the assembly hall or some monumental building may be located with
wide roads around. Urbanization involves decline in kin labor and increase in non kin labor.

The Agricultural Sector

1. There was substantial community dominance in economic matters. The village land was divided into cultivable
plots and allotted to each family but the transfership rights over the land remained with the community. Irrigation
projects and field fencing were also done collectively.
2. There were no intermediaries and taxes were paid directly to the king.
3. Rich peasants (called gahapatis) employed slaves (dasa karmakara) and hired agricultural labor (non kin labor)
to cultivate their lands. The poorer peasants were called kassakas or krishakas and they employed kin labor.

Taxation System

1. The land revenue (bhaga) was 1/6 of the produce and was assessed and collected by royal agents assisted by
the gramini. Payment was in cash or kind. In addition, peasants were forced to do labor for the king. There was
another tax bali which was levied on the measurement of land and a voluntary offering called bhoga.
2. Artisans had to pay taxes and also to work for the king one day per month.
3. Traders had to pay customs on selling their goods. It was collected by shaulika.

Mauryan Age
The Agricultural Sector

1. Shudra laborers and slaves were used by the state to bring new land under cultivation. Shudras also comprised
of farmers. Cultivators were kept unarmed so as to prevent a peasant revolt.
2. The state encouraged the cultivators to bring additional land under plough and carried out irrigation works
as well. This was done by providing tax breaks in the initial years and providing cattle, seeds and money to the
new cultivators.
3. State maintained crown lands headed by sitadhyaksha. These lands were cultivated by slaves and hired
labor. The army was instructed not to destroy crops on marches. Arthasastra bans renunciation of worldly life
without providing for dependents.
4. The state also maintained pasture lands and vivitadhyaksha looked after them. (Source: Arthasastra)
5. Later Asoka used dhamma as well to convert the tribals into tax paying peasants.
6. Megasthenes tells us that there were no famines in that period but Arthashastra + Jain literature and Sohgaura +
Mahasthan inscriptions clearly tell us that there were famines but the state used to carry out famine relief
measures.

Taxation System

1. Land Revenue varied from 1/6 to 1/4 of the produce. Those using irrigation had to pay additional for it. Bhaga
was the land revenue, Bhoga was the ceremonial gifts received from peasants. Bali was levied on land
measured in assessment. There was additional tax Pindkara collected lump sum at the village level. Taxes were
 paid both in cash and kind.
2. The villagers had to feed the royal army on its
marches. In times of emergency, the peasants were compelled to raise additional crops.
3. Land measurements were done and also irrigation channels were monitored for tax assessment. Where state
provided irrigation, there was a general irrigation tax. But where irrigation was privately managed there was
either an exemption or reduction in the water levy. Arthasastra shows preference for private management of
irrigation. Thus although instances of public works on irrigation were present, there is no evidence to show that
the state controlled all irrigation (the oriental despot and the asiatic mode of production theory).
4. Tolls were levied on goods for sale and collected at the town gate, crossing bridges and while on roads. There
was 20% toll tax and additional 20% trade tax. Tax evasion was known and steps were taken against it. The
manufacturers paid taxes at different stages of production. Prices were controlled to prevent too great a profit
for the merchant.
5. Stress was on proper tax assessment compared to tax collection and storage. The samaharta was the chief tax
assessment officer and the sannidhata was chief tax custodian.
6. The peripheries were generally forced to provide resources like timber, ivory, semi precious stones and left to
live as they liked within their area. There wasn't much restructuring of their economy but Mauryan culture
inevitably spread through these contracts and in a later age we find state formation in such areas.

The Secondary Sector

1. The state enjoyed monopoly over sectors like liquor, manufacture of arms which brought it handsome revenue.
The state carried out production in its own workshops.
2. The state had extensive control over economic activities and as many as 27 superintendents were appointed to
regulate such activities.
3. Crimes against artisans were punished severely to ensure their safety. Capital punishment was awarded for
cutting the thumb of a craftsman.
4. The use of iron increased greatly and this added to agricultural as well as secondary sector productivity greatly.
5. The state increased monetization of economy by circulating larger number of purer coins. The peacock and
crescent-hill marked coins can be attributed to the Mauryas.
6. The Mauryan kings maintained diplomatic relations with the outside world which also increased trade and
commerce with them.
7. There was no banking system but usury was customary. Interest rates recorded were around 15% p.a. but it
was also based on varna. Interest rates for loans involving long sea voyages could be as high as 60%.

The Trade Routes

1. The NW route ran along the Himalayan foothills - Vaishali --> Champaran --> Kapilvastu --> Kalsi --> Hazra
--> Peshawar. Vaishali was connected to PP and then on to Tamralipti. The PP --> Champaran --> Vaishali
route went to Lumbini.
2. The Central Indian route ran from PP --> Sahsaram --> Mirzapur --> Ujjain --> Bharuch.
3. The Dakshinapatha ran from PP --> E MP --> Kalinga --> AP --> Karnataka. Arthashastra tells us that this
route was more important than the NW route because of the higher value of the trade in precious metals and
precious stones with south.
4. Broach and Tamralipti were the important ports. Important sea routes were from Bharuch and Sopara to SL
and from Tamralipti to Puhar and then SL. Foreign trade used to happen with W Asia and Egypt Arthashastra
tells us that river and sea navigation was preferred to overland routes.
5. Samastadhyaksha looked after land routes, Pantvadhyaksha looked after boats and Pattanamadhyaksha
looked after the ports. Trees, rest houses, wells etc. were constructed along the routes.

Factors Responsible for Economic Development

1. Emergence of Mauryan empire.

2. Greater use of script.
3. Greater monetization of economy.
 4. Role of state in economy,

Post-Mauryan Age (North India)

Agriculture

1. Rudradaman's inscription points out that the state still took part in maintenance of irrigation. We already know
Kharvela proudly mentions his irrigation efforts and Karikala also dredged a portion of Cauveri river to provide
for irrigation. The literature as well as inscription provide ample evidence of tanks, wells and embankments.
2. A hydraulic lift has been found in Sringverapura which may not have been used for irrigation per se but the
technology for moving water by varying the water levels may have been derived from or influenced irrigation.
We also find the use of wheel to draw water from the well.

The Indo-Roman Trade

Trade Routes
1. The trade and commerce flourished immensely because the silk route (China --> Central Asia --> Afghanistan -
-> Iran --> W Asia --> Rome) passed through the Kushana empire. India also got gold from Altai mountains in
C Asia and the increased Roman trade.
2. In the beginning, this trade used to happen over land. But then the Parthians disrupted the trade even though
they themselves were importers of Indian iron and steel. So silk routes were diverted to south and to Broach
from where it was carried on sea.
3. One of the Central Asian silk routes now came to Taxila. From here it got divided into two. The uttarapath ran
from Taxila --> modern Punjab --> west coast of Yamuna --> follow Yamuna --> Mathura --> Ujjain -->
Broach. The second route went from Taxila --> lower Indus basin --> Broach.
4. Another route came from Kaushambi in the east to Ujjain.
5. Important ports were Broach and Sopara in W Coast and Tamralipti and Arikamedu on the E Coast. Broach
served all three - Satvahnas, Sakas and Kushanas.
6. The conquest of Mesopotamia and other parts in middle east by Roman empire in 115 AD facilitated the trade
 with NW part of the continent as well.

Factors Responsible for the Economic Development

1. Foreign rulers which led to closer integration with external world, new trade routes, control over existing routes.
2. Establishment of Han dynasty in China which encouraged trading relations with India and Indians could import
silk cheaply.
3. Parthian disturbance in Iran leading to diversion of silk-routes to India.
4. Knowledge of monsoon winds.
5. Greater monetization of economy.
6. Role of guilds and Mahayana.
7. More freedom given to the artisans and craftsmen as the state interference in their day to day activity reduced.

Guilds

1. Each class had their own shreni often called as guild. But the shreni was not exactly the same as its European
counterpart because it was more in the nature of a group of professionals working in association. Many
individuals joined shrenis because it was difficult to compete with the organized shreni and also because a shreni
offered social status and security.
2. Each guild controlled its own members and looked after their education, marriages, skill development, conduct,
welfare etc. according to the customary laws of the jati or occupation. It is clear that the guilds also monitored
the private life of their members as the sangha rules mention that if a woman wants to join the sangha, she has to
obtain permission of not only her family but also the guild. These guilds were closer in functioning to a gana
sangha. The guilds were responsible to monitor rules of the work, the quality, the price and the quantity of
produce and had judicial powers. The guilds also had their soldiers to safeguard their trading caravans. In the
production, when the demand grew they also began to employ hired labor as well as slaves.
3. The autonomy of the guilds was recognized by the state as (a) the state benefitted from them in terms of
additional trade and hence additional revenue, (b) ease of collection of revenue, (c) job of the state was to
collect revenue and maintain law and order and guilds helped in maintaining law and order as well apart from
revenue collection.
4. They also accepted deposits and lent money. Excavations have thrown up seals and emblems associated with
the guilds. Buddhist stupas also display the banners and emblems of the guilds and they are also mentioned in
many temple inscriptions which may also mean advertising.
5. Though the guilds were economically powerful, they didn't seek a role in direct politics which was considered to
be a specialized job of the ruling elites. However they vied for royal protection to further their commercial well
being. Many inscriptions also talk about investments made by the kings with particular guilds like the Saka nasik
inscription talks about the king investing in the guilds of weavers, potters etc. Clearly these occupations would
have been socially acceptable (although claimed otherwise by the brahmanical literature) otherwise the king and
the upper classes wouldn't have invested in them. This indicates that the brahmanical literature was more of a
normative version according to the perspective of a few brahmans rather than a descriptive version of how the
society functioned.
6. There were some other associations like goshthi, nigama etc. but they were less powerful than guilds.

Post-Mauryan Age (Satvahnas)

The Secondary Sector

1. Use of iron implements began on a wide scale. Iron was also used in Megalith cultures but not in any great
quantity. The Satvahnas may have got the iron from Karimnagar and Warrangal. Socketed tools were now used
(hoes, ploughshares, arrow-heads etc.). We find a blacksmith's shop's remains in Karimnagar.
2. Metallurgy got a great boost specially iron industry and Indian iron and steel works became very famous and
were even exported to Abyssinian ports.
3. Cloth industry (weaving, silk, dyeing), coin minting (including fake Roman coins), terracotta making, glass
blowing (initially it was imported, then the technology found its way in India), oil making (due to use of oil
wheel), ivory etc were important crafts.
The Agriculture Sector

1. Wet paddy cultivation was practiced and the area between R. Krishna and R. Godavari was the great rice
bowl. They also grew cotton which was famous in external markets as well.
2. In the irrigation sphere, water wheels became of common usage. Smaller irrigation works like tanks and water
lifts were built through local initiative or the grantee as revealed by some inscriptions.
3. The state repaired the famous Sudarshan lake and it is specifically mentioned that the entire cost was borne by
the state and no vishti or additional taxes were imposed. Perhaps imposing vishti was the norm.

Sangam States of Tamil Land

Trade as a Driver of Urbanization

1. The evolution of urban centers was slower here despite the presence of agriculture and iron. Perhaps the
minimal craftsmanship didn't require a concentration of craftsmen in towns. However, trade with the Romans,
Malacca and the Mauryans gave a major impetus to urban development. Initially the major item of exchange
was pepper exchanged for Roman coins, wine and pottery. Gradually India also began to export textiles and
semi precious stones. The Roman conquest of Egypt provided a further boost to the trade and such exchange
centers gradually developed into towns.
2. Interaction with Buddhist and Jaina monks and with Mauryan traders also gave a phillip to state formation and
hence urbanization.
3. For the inland trade routes, Ujjain --> Bhokardan --> Dhulikatta --> Peddabankur --> Amaravati was one
route and Bharuch --> Nasik --> Kondapur --> Nagarjunkonda --> Amaravati was another.

Agriculture

1. The intimate contacts with the powerful Magadhan empire must have stimulated agricultural production. Thus
we find that towards the dawn of the BC, hill tribes began to leave hill tops and cleared the fertile deltas for
cultivation. The arrival of buddhist and jain monks also brought with them the advanced agricultural techniques
from the north and thus the process of state building got an impetus.

The Secondary Sector

1. They had an extensive international trade. Spices, ivory, pearls, precious stones, cotton, silk and muslin were
chief items of export. They traded with Egypt (first under Greece and later Rome) and Arabia on one side and
the Malay peninsula on the other. We also find Mauryan age punch marked coins here which indicates the
importance of Mauryan influence in their state building.
2. This trade was very important to them and when this trade declined, these kingdoms declined too. So the state
took steps to protect the trade routes and ensure safety of merchants.

Gupta Age
The Agricultural Sector

1. The agricultural sector grew in importance towards the later half and the secondary sector decreased with time
this can be inferred from increasing number of taxes on agriculture and reduction in those on trade and
commerce.
2. The system of land grants brought additional land under cultivation, but it also resulted in loss of land rights of
the tribal peasants. The brahman beneficiary became the land lord of the entire village and the tribals were
reduced to a status of landless laborers.
3. Narad and Brihaspati tell us that the donees didn't use to cultivate themselves but employed hired labor (mostly
from the lower castes). These labor were supposed to get between 20 - 33% of the produce as their wages.
But as the land grants increased the condition of these labor declined as the labor was tied to the land and
granted along with it so that they couldn't go away.

The Secondary Sector

Factors Behind Decline of Trade and Commerce
 1. Decline of Roman Empire, ban on Indian trade in Rome. Romans learnt how to grow silk themselves in 550
AD.
2. Invasions and disturbances in NW India.

The Characteristics

1. The penetration of money in the economy was not too deep because the number of copper coins discovered is
very less. This indicates coins were not used in day-to-day transactions by the commoners. Villages were now
emerging as self sufficient units. LR had to be paid in kind and there were no coins. Also is it a mere coincidence
that the various forms of cash salaries which Arthasastra talks about are not even heard from this age? Even Fa-
hein writes that the common people used to trade via barter or shells. Hence there is a clear case of decline of
secondary activities.
2. There was a clear decline in long distance trade. Due to decline in demand, we have an instance of a community
of silk weavers migrating from Gujarat to Mandsor and taking up other professions. Trade with Romans had
already declined. But trade continued with China and the marine route became more important than the land
route. Thus India used to export saffron, jewelry made of semi-precious and precious stones, perfumes, textiles
etc. to China. In return (via barter) India used to import silk. That this trade was conducted on barter is evident
from the fact that neither Indian coins have been found in China, nor Chinese coins in India. Tamralipti was an
important port and it used to trade with SE Asia as well but the Gupta rulers can't be credited for its
development since we find hardly any Gupta evidences there.
3. From the land grant inscriptions it is clear that the various artisans and craftsmen associated with the donated
land couldn't leave the land. Such a thing can never be conducive for the growth of secondary sector.

The Taxation System

1. Land Revenue varied from 1/6 to 1/4 and was paid mainly in cash specially by the time of the later Guptas. In
addition, peasants had to feed the royal army whenever it passed through. When the king used to move with his
army, the local peasants would come and offer him a part of his produce. This was called bhoga. They had to
pay for the maintenance of the royal officers in their areas. They also had to perform forced labor or vishti for
the army and royal officers. Vishti could be imposed by samantas and land grant beneficiaries as well.
2. Taxes on trade and commerce declined indicating their decline. The state used to own all rights on hidden
treasures and minerals except on the land grants already made.

Factors Responsible for Economic Development

1. Gupta empire. His conquests opened new routes and provided fresh impetus.
2. Greater monetization.
3. Technological advancements - large ships capable of carrying 500 people + metallurgy.

Hypothesis of Urban Decay

1. Urban Decay: RS Sharma accepts literary evidence for the decay is not strong but the archaeological evidence
is. There were no copper coins indicating absence of monetization in common life. The inscriptions don't
mention artisans and merchants any more. They carry a picture of rural economy land-based in nature. The
urban decay was a result of the declining long-distance trade.
2. Negation: The commoners used shells as money. The inscriptions will obviously not speak about towns because
they were land grant inscriptions. The urban description in literary work cannot be taken literally but it does
indicate flourishing urban centers. The very production of sophisticated literature could happen only in urban
centers. Even the Tamil epics describe urban centers. The law books and inscriptions discuss money lending
and interest in great detail indicating monetization of economy.

Post-Gupta Age
Theory of Economic Decline
Arguments For

1. There was a setback to trade and decline in urban centers. The fall of Roman empire led to collapse in marine
trade and rise of Islam led to collapse of Iranian empire leading to collapse of overland trade. This led to decline
in monetization as well due to lack of gold and silver. A vicious cycle set in.
2. The Huna invasions led to fall of central authority, sericulture began to be practiced in Rome, Sino-Tibetan
conflict leading to closure of trans-Himalayan trade routes, all led to decline.
3. The literature of this age reflects the decline in trade by prescribing restrictions on travel and more parochial
outlook. This reflects growing feudalism in the society.
4. The social structure saw an increasing emphasis on association with land. People who were not associated as
lower or even out castes. This naturally gave a big setback to craft production. So gradually urban centers
declined and people began to move towards villages and we find that in this age even the craftsmen lived in rural
areas. Moreover they had to produce as per the needs of the village and were bound by the whims of the
temples and the headmen. Various occupations had become hereditary, production was done for the village and
the jajmani system set in. Thus there was no competition also.

Arguments Against
 1. Debasement of currency was not a result of decline but due to increasing demand for money and short supply
of silver which came from Afghanistan. Recent studies show that there was no decrease in volume of coins
though there was decline in types and aesthetic value.
2. Old centers were dying and new ones were coming up. Some old ones continued. There were numerous
intermediate level trade centers called mandapika in N, penthas in Deccan and nagarams in S. They were
between the small haats and big trade centers.
3. Long distance trade got split into smaller segments - Arabs to W Coast; E Coast to SE Asia; SE Asia to
China.

The Agricultural Sector

1. Agriculture continued the trend of growing importance. Towards 900 AD, knowledge of seasons, use of
manures, developed irrigation techniques, iron ploughs and iron implements led to generation of agricultural
surplus again. There was an improvement in irrigation as it was encouraged by the state, rich men and the
temples. Thus we know that the Chandelas and the Parmaras took on large scale irrigation projects. Agni
Purana prescribes encouraging irrigation as one of the important duties of the king.
2. There was a special category land called the tank land in S India the revenue of which was supposed to be for
the maintenance of the village tank. Irrigation from wells was next in importance. Water was taken from the tank
by the water lifts to the canals and these were fitted with stone sluices to prevent overflow. A special tax was
levied on irrigation.

The Agricultural Society

1. Initially most peasants were independent and cultivated their own lands. But the process of land grants meant
that increasingly all land came to be controlled by the feudal lord and the ordinary peasants were reduced to the
status of sharecropper or landless agriculture labor.
2. The brahmans didn't cultivate the land themselves but use to employ shudra farmers (most of the farmers were
shudras) to cultivate their lands. The labor and other means of production like ploughs and oxen often came tied
with the land grant.
3. The brahmans paid LR on very concessional (close to 0) terms but the common farmers (mainly shudras) had to
pay high rate of LR (up to 2/3rd). Similarly the interest rates prescribed for loans to shudras were also the
highest.

The Secondary Sector

Monetization

1. It is argued that monetization had begun to decline from later half of Gupta rule and by Harsha's time, only
copper powder and shells were used as currency. Thus monetization had reached its low point by 1000 AD.
Whatever little coins were there became debased, irregular, light weight. Perhaps it was a reflection of declining
trade and urbanization. Trade with Romans had stopped, trade with Arabs had declined, overland trade with
China suffered too. Arab travelers testify that most of the exchange in day to day life as well as inter regional
trade was carried on via barter or shells. Even in the ports of Bengal and Gujarat which were international trade
centers, we find very few coins. Under the Palas, we only find 6 gold coins from Devapala and under the
Chalukyas of Gujarat, we find only 1 gold coin.
2. But such a generalization is difficult as there were regional variations. In some areas like Sind, Punjab and
Kashmir coins continued. Only in Gangetic plains were coins less in number though some NW coins may have
broader circulation zone.
3. A large varieties of coins were mentioned in texts from 9th century (although the quantity of circulation may be
low). There are mentions of transactions in money. There were drammas (silver + copper) associated with
Pratiharas from 8th to 10th cent AD, Gadhaiya coins from post Gupta times. A 10th century inscription form the
west coast mentions of a tax of 1 gold coin from every ship. For smaller transactions copper powder and
cowries were there. We know from inscription that the Senas had land assessment done in money terms.
4. Debasement of currency was not a result of decline but due to increasing demand for money and short supply
of silver which came from Afghanistan.
 5. Gradually due to high value trade with Arabs the gold coins were revived. From 1000 AD, we see increasing
level of monetization - mainly because of re-emergence of agricultural surplus. Coins were issued by
Gangaideva (~1000 AD) of Kalachuris, Madanwala (~1100 AD) of Gahedwal dynasty and the Chauhans
(~1200 AD).

Long Distance Trade

1. There was a shift away from land to maritime routes. India and SE Asia were important centers of international
marine trade because due to wind patterns, Arab ships couldn't travel beyond India and Chinese ships couldn't
travel beyond Malaya. Trade relations were more important with SE Asia and China. Tamralipti, Saptagram
(Satgaon, Hooghly), Shikakos, Samandar (Chittagong), Khalkapatna (Puri), Manikapatna (Chilka Lake) were
important ports in E Coast. Arabs had monopolized the trade in Arabian sea. Deval, Thane, Khambat, Bharuch,
Somnath and Queelon were important ports on west coast. As a result of the Arab domination, initially the trade
with western Asia declined but after the 10th century it increased tremendously.
2. Indian exports consisted of mainly luxury goods earlier. But in this period, the variety of exported goods
increased. Imports were mainly horses, tin, gold, bronze etc.
3. The international land routes were (a) Sind - Baluchistan - Iraq and (b) Punjab - Kabul - Gazni - Trans Oxania.
Al Berouni mentions 15 land trade routes within the country for long distance trade. Kannauj was linked to
many trade routes. However, the overland trade clearly suffered from the handicap of lack of law and order and
numerous spheres of influence of multiple small samantas where they had to pay multiple tolls and it caused
delays as well. However, due to the income from the tolls, many of the samantas took to protection of these
merchants.
4. With China, the trade from the land route in NW was declining steadily due to ongoing power struggles there.
Trade however continued through the NE route i.e. from Assam to Tibet to China. The composition of trade
though now diversified greatly away form the Buddhist items. While direct exports from India to China were
textiles, spices, lac, incense, medicinal herbs, indirect exports (originally from Arabs) were horses, rose water,
ivory and glassware. India used to import Chinese porcelain (increasing) and silk (decreasing). Apart from
China, brisk trade was carried on with the SE nations as well. It can be noted that the Chola kings took active
steps to promote trade with China and ASEAN though north Indian kings showed indifference towards this
cause.
5. India had a strong shipbuilding tradition as well and there were several shipyards. However, they couldn't keep
up with time and technology and gave way to Arab and Chinese ships. The Chinese had also invented the
mariner's compass by this time which Indians didn't use. Moreover the Chinese ships were bigger and also
could carry armed soldiers for protection from sea pirates. Indian ships were small and had no capacity to carry
armed soldiers for protection.
6. The trade also resulted into migration of many communities like Arabs. It had significant political implications as
well.
7. Traders were trading in guilds and using bills of exchange as well reducing the need to carry coins. However in
this age the influence of guilds declined and they were no longer considered to be permanent going concerns.
Perhaps this was a direct outcome of increasing anarchy and feudal wars. Temples came up as alternative
institutions which could be treated as permanent going concerns and we find evidences of people depositing
their money and property with the temple instead.
8. The interest rate varied according to the caste of the capital with brahmans being charged 2% p.m. while
shudras being charged 5% p.m.

Urban Centers

1. Old centers were dying and new ones were coming up. Some old ones continued. There were numerous
intermediate level trade centers called mandapika in N, penthas in Deccan and nagarams in S. They were
between the small haats and big trade centers.

Chola Empire
Agriculture
 1. The Chola kings paid attention to irrigation and numerous tanks were built. The king didn't directly build the
irrigation works (except occasionally to earn punya). But state used to encourage community irrigation works by
reducing the land revenue for lands irrigated by such projects or by granting land to person undertaking an
irrigation work. State used to encourage extension of cultivation by fiscal sops. Persian wheel was used as well
for irrigation along with canals. Tanks with water lifts and sluices were common methods of irrigation.
2. The agriculture labor was usually paid out of a share in the produce while the general labor was paid out of
produce of the village common and allowed to live near their place of work. Labor was transferred along with
the land grant. There are increasing references of peasant revolts because by now migration was restrained.

Trade & Commerce

1. The Chola kings built many roads which aided in trade as well as military movement. They also setup protected
mercantile towns and carried military expeditions to protect trade.
2. Developments in China made it open and safe for traders. The Chola kings seized the opportunity by
exchanging embassies with them. The Arabs also had started to establish their trade posts in India and thus
trade expanded. Queelon, Calicut and Kannaur were main ports.
3. Large and powerful trade guilds (Manigramam, Ayyavole - of 500 brahman swamis of Aihole, Nanadeshi,
Nagarattar were the famous ones) existed in their time. These guilds carried on trade both inland and long
distance. Trade happened both in luxury and staple goods. Sopara, Sri Kandpuram and Queelon were
important ports. These guilds were powerful indicated by their access to any region irrespective of the kingdom
and that they used to finance the construction of temples and give loans to the king. Given their power it is
curious that they didn't aspire for political power - perhaps because the concept of state system was not like
that in the age. Also they depended upon the king for many privileges.

Main Industries

1. Kavya Mimansa tells us that timber industry was the main industry in Rashtrakuta kingdom. The timber industry
was encouraged by growth in ship building industry both for trade and Chola navy. Then pepper was also
exported.
2. Medhatithi tells us that S India was famous for its pearls.
3. Agnipurana mentions a sword making industry in Sopara.
4. Metal working was an important craft under Cholas as is evident by sword making as well as ashtadhatu ad
bronze images. Gold, silver and precious stone working was also famous.
5. Textiles was a big time export.

Urban Centers

1. There were numerous intermediate trade centers called nagarams. Like the important brahmadeyas, important
nagarams were given the taniyur status which granted them autonomy. The nagarams had a local self governing
body comprising of merchants whose members were called nagarattas.
2. New urban centers also came up due to development of temples.

Taxation

1. A land assessment survey was carried on by Rajaraja in order to assess revenue (which depended on the
quality, the quantity of land and whether it was irrigated or not). Additional sources of income were tolls on
trade, forced labor, military service, taxes on professionals and war booty.

The Vijaynagar Kingdom

Agriculture Production
Changes

1. The the number of villages had increased significantly and the agricultural production increased. Many changes
came in the village economy from the Chola period. (a) One was that the 'nadu' unit under the Cholas now got
reduced to village as the basic unit. (b) Many Telugu speaking and north Indians came and resided in the
 Vijaynagar kingdom and began to own agriculture land. This additional supply of labor too increased the
agriculture production. It led to extension of cultivation as well.

Agriculture Techniques

1. There was little role of state in providing for irrigation. Most irrigation efforts were done at the personal or the
temple level only. But in extreme cases when there was distress migration due to destruction of irrigation
systems then the state would get them repaired.

Land Tenure System

1. Some villages (called Bhandarwad villages) were under the direct administrative control of the kings. The
peasants of these villages used to pay LR directly to the king. The king could also make land grants out of such
villages.
2. But most villages (called Amaram villages) came under the Nayankar system where the king would grant his
military officials (called nayaks) some land in lieu of their service. Initially these amarams were in return for
service to the king but later on they became hereditary. The nayaks also had to pay a certain portion of the LR
to the king.
3. The brahmans, temples and other big land lords who didn't cultivate the land themselves used to lease it out. The
tenant could not be removed unless he failed to pay the LR and had inheritable rights. But he had to cultivate
according to the wishes of the landlord. Absentee landlordism, feudalism and exploitation grew in the Vijaynagar
kingdom.
4. State used to respect the personal ownership of land. If it had to make a land grant from a personally owned
land then it would buy the land after paying a compensation.

Revenue System

1. Vijaynagar kingdom is notorious for a large number of taxes it imposed on virtually every activity including
marriages. But it must be kept in mind that the economy witnessed an unprecedented growth in this period and
hence it was natural for the kings to take a share out of it. Further, though the number of taxes may be large their
individual rates were lower.
2. Land was classified as irrigated or rain fed for the LR assessment purpose. Then it was seen if any part of it had
been donated to temples or brahmans etc. Then it was further classified for tax assessment on the basis of
cropping pattern. Separate tax was levied on irrigation and pastures.