Inland Commerce

UNIT 7 INLAND COMMERCE*

Structure

7.0 Objectives
7.1 Introduction
7.2 Sources for the Study of Inland Trade
7.3 Inland Trade under the Mughals
7.3.1 Inland Caravan Routes
7.3.2 Overland Caravan Routes
7.3.3 Merchants, Commodities of Trade and the Market
7.3.4 Trade, Commerce and the State
7.4 The Case of Awadh
7.5 Summary
7.6 Keywords
7.7 Answers to Check Your Progress Exercises

7.0 OBJECTIVES
In this Unit, you will study the nature of inland trade and commerce under the Mughal
Empire. There were several interrelated developments that took place in this trading
nexus.
After going through this Unit, you should be able to:
• Understand the pattern of inland trade and commerce under the Mughals,
• Know about the major merchant groups involved in these trading activities,
• Discuss the prevalent practices in the market and at the major towns,
• Analyse the relationship of trade and commerce with the state,
• List the main commodities of import and export,
• Examine the various taxes imposed upon the trading class, and
• List the important overland routes comprising this network of trade.

7.1 INTRODUCTION
In order to determine the economic growth of any pre-colonial society, we cannot use
the indices of today1. The rate of population growth, based on the extent of cultivation
and per-capita land revenue, is considered as a good measure for determining the
economic growth for these societies (Moosvi, 1993: 406). One of the major changes
in the Mughal economy during the seventeenth century was the silver influx obtained
through the medium of trade.

*Dr. Divya Sethi, Museum-Sector Skilled Professional, Ministry of Culture, New Delhi.
1
Such as per capita income, literacy rate, and so on. 101
Production and The Mughal economy, like any early-modern economy, was largely based on agricultural
Commercial Practices
activities. The trading sector was comparatively smaller in size, in terms of employment
and state revenue. But considering the repercussions of the trading sector, it created
far-reaching impact. The gross agricultural produce which was collected as land revenue
by the state was eventually converted into cash. This conversion required exchange
and trading activity on a large-scale. Thus, trade constituted a significant element in the
lives of members belonging to different communities.

The trade carried at the inter-local and inter-regional level mostly dealt in commodities
of mass consumption. The trade in foodgrains constituted a huge share and dominated
the sector. Few regions were rich in food production, whereas others required supply
on a regular basis. Banjaras moved in caravans transporting foodgrains by land over
long distances. A huge portion of trade in food was carried on through the medium of
navigational routes, either by rivers or along coasts (for details see Unit 8 of this
Course).Our focus in this Unit shall be to understand the nature of inland trade under
the Mughal empire.

7.2 SOURCES FOR THE STUDY OF INLAND TRADE

The primary source for the study of inland trade under the Mughals constituted of
numerous documents — in Persian and vernacular Indian languages. These included
the historical and biographical records, the official records of various administrative
departments, and also the literature from various regions. Sources of special value
were — the Ain-i Akbari by Abu-l Fazl, the Baharistan-i Ghaybi by Mirza Nathan, the
Muntakhabu-l Lubab by Khafi Khan, the Mirat-i-Ahmadi by Ali Muhammad Khan,
archival documents from various regions such as the Maratha State and Rajputana,
and documents pertaining to South India (inscriptions in Telugu, Tamil and other
languages). All these records contain crucial information pertaining to the trade, rates
of taxation etc.

The revenue documents (dasturul amals) have been used by historians as a source
material shedding light on the economic activities under the Mughal state. These
documents were compiled under Shahjahan. The corpus of royal letters, orders and
communications issued by Aurangzeb and other Mughal emperors to their officials
constitute another source for the study of trade under the Mughal empire.
The accounts of foreign travellers are sources of great value, to the like of Arab Ibn
Batuta, Potuguese D. Barbosa, Englishman T. Marshall, Dutchman F. Pelsaert,
Frenchmen F. Bernier and J.B. Tavernier, and others. All these sources shed light on
the movement of commodities, the merchants involved and their relations with the
state, and thus, the impact of this trade on the medieval Indian economy and politics.
Another corpus of the study material on medieval Indian economy was the European
language source material. With their own limitations, these sources reveal a lot about
the value of overland trade carried on between India and its neighbouring countries. At
times, they also reflect upon the factors at work in the inland trade between different
regions of the country. For the sixteenth and early seventeenth centuries, sources
pertaining to the value and volume of the foreign trade of India are rare. Then, the
commodity-composition of this trade reveals a great deal not only about its nature but
also sheds light on the other aspects related to it.
102
One such case in point is a Dutch report for the year 1634, that provides details of the Inland Commerce
total cost of cargo sent from India to Persia and the amount of profit earned therein.
Though such reports are not found for every year around the same time. This limits our
knowledge along similar lines. Therefore, a much clearer understanding emerges only
from proper utilization of local sources and detailed regional studies. Such studies
reveal the regional trends of commercialization and help us arrive at the general pattern
of economic growth in medieval India.
These sources have been aided by the considerable historiographical data compiled as
a result of publications of scholars in the nineteenth and twentieth centuries. Recent
regional studies have stimulated interest in this field by bringing to the fore the true
picture of India's economical progression in the past. The larger publications on world
historiography have further helped in establishing an understanding of the socio-
economic development of India prior to her conquest by the colonialists.

7.3 INLAND TRADE UNDER THE MUGHALS

Inland trade under Mughals began at the village level, where the surplus agricultural
produce was sold in order to realize the revenue in cash. The traditional grain merchants
bought bulk of this surplus and sold it in other towns and markets. Markets were held
in bigger villages or small townships, either regularly for supplying articles of daily
consumption or periodically for specific goods. These local markets were connected
to the bigger trading centres in a region. These centres also served as emporia for
inter-regional and foreign trade. They had mints where silver, copper and gold coins
were struck.
Hence, inland trade was carried at three levels under Mughal India:
• Local and Regional Trade,
• Inter-Regional Trade, and
• Overland Trade / Foreign Trade

7.3.1 Inland Caravan Routes

Inland Trade Routes
The trade between different regions of Mughal India was quite developed and
phenomenally high, despite the time consuming and high-cost mode of transportation.
Different kind of commodities were traded across regions. In the East, Bengal was the
major centre of trade and commerce. It had well developed trade relations with most
parts of the country. The major trading centres were Dacca, Hijili, Hugli, Malda,
Murshidabad, Satgaon, Sonargaon and Sripur. Different products were brought from
Bihar, Orissa, Gujarat and Kashmir to Bengal. Bengal had trade links with Agra, Banaras
and various other towns in north India.
In the western region, the biggest trading centres were Ahmedabad and Surat. Gujarat
received its supply of spices from the Malabar coast. Large-scale trade was carried
from Gujarat to the towns of Konkan and Malabar. In the northern region, there was
vast inland trade carried through Punjab in the Mughal India. Agra received large
quantity of silk from Bengal and the famous marble from Rajasthan, along with other
parts of the country. Most of the trade from South India was conducted along the
103
Production and coast. Diamonds from Golconda mines were traded to all parts of India. Good quality
Commercial Practices
steel was made in Deccan and South India. Minerals and metals produced at one
region of the country was taken to other regions.
An elaborate network of trade routes linked all the major commercial centres of the
Mughal empire. All the major trade routes had sarais located at short intervals, with the
routes more frequently traversed having towers, kos-minars, to indicate the distance
travelled. Some of the important trade routes are as listed below:
• Agra to Delhi route connected to Kabul: this route passed through Sonepat,
Panipat, Karnal, Ambala, Ludhiana, Fatehpur, Lahore, Rawalpindi, Peshawar and
Kabul.

Map 7.1 : Major Land Routes in India-17th Century

Source: EHI-04

• Agra to Burhanpur connected to Surat: this route passed through Dhoplur,

Gwalior, Narwar, Burhanpur, Nandurbar, Kirka and Surat.
104
 • Surat to Ahmedabad connected to Agra: this route passed through Broach, Inland Commerce
Baroda, Ahmedabad, Palampur, Jalore, Merta, Hinduan, FatehpurSikri and
Agra.
• Agra to Patna connected to Bengal : this route passed through Firozabad,
Etawa, Sarai Shahzada, Allahabad, Banaras, Daud Nagar, Patna, Munger,
Bhagalpur, Rajmahal and Dacca
The means of transport used in this network of trade and commerce constituted of
pack animals and boats plying through the river routes. Oxen drawn carts and camels
were utilized for carrying commodities by land. Human labour was also employed at
times. Whereas on the river routes, different kinds of boats were used to connect
regions within the subcontinent. It took less time for transporting commodities while
moving in the same direction as the flow of the river. This mode of transport was cost
effective as well.

7.3.2 Overland Caravan Routes

India carried trade with the neighbouring countries since times immemorial. The Indian
foreign trade, before the second half of the seventeenth century when the European
presence became quantitatively important, was carried on through the countries located
in the Red Sea and Persian Gulf. This distance traversed in the course of this trade
meant that the funds invested by merchants matured after a long period of time.
Therefore, the trade had to be carried in bulk goods that fetched a higher rate of
return. Moreover, different regions had varying access to this overland trade. The
regions lying on the northwestern frontier of the subcontinent were actively engaged in
it than the regions on the east. The coastal regions had access to these countries through
the sea (you will read about the Indian Oceanic Trade Network in the next Unit 8).
In terms of total value of the precious metals, the trade carried with the Red Sea took
a lead from the one carried with the Persian Gulf. There were two major markets at
Mocha, one was the local market covering the region of Yemen, the African coast of
Red Sea and Hadramaut coast. The other market catered to the needs of the Haj
pilgrims. The local market was dominated by the Turkish merchants. Gujarati banias
were also actively engaged in this trade, whose factors were placed in inland centres
such as Sana, Beit al Faqih and Tais where bulk of textiles were brought through the
overland trade routes. Hence, the overland centres catered to the sea routes and their
alternatives, where lesser taxes could be paid.
Overland trade routes were more favourbale in terms of safety and welfare of the
merchants. These routes were directly under the control of the ruling regimes in contrast
to the sea routes that lay at the mercy of European companies. The former were well
protected in case of problems enroute, had better facilities for lodging and the overhead
charges were comparatively low.
India and Iran were engaged in an active trading relationship throughout the sixteenth
and seventeenth century. As aptly stated by Tavernier, there were always merchants
who preferred the overland trade route:
For although it is very easy to take a ship at Gombroon2, there are always merchants
who take the land route, and it is by this route come the finest textiles made in
India.
2
Gombroon was one of the major port in the Persian Gulf where Indian ships used to trade.
Basra was another port were trade was conducted on a large-scale. 105
Production and Many factors worked in favour of overland routes till the mid-1630s such as the conflict
Commercial Practices
of European Companies and their efforts at reducing the share of the Asian merchants.

Map 7.2: Overland and Overseas Trade Routes in the 17th and 18th Centuries
Source: MHI-05: History of Indian Economy, Block 5, Unit 21, pp. 8
106
The principal mainland to Central Asia passed through the Khyber and Bolan passes. Inland Commerce

The main entrepots lying on these routes were: Lahore, Multan, Kabul and
Qandahar.There were many small arteries that fed onto the main highway with their
own specialities to offer. The routes from Ladakh, Tibet, China and India were connected
to Kashgar via the routes passing from Kashmir that led through the Kara Koram to
Yarqand. From Kashgar, the caravans3 headed to Samarqand and Bukhara.
One of the most important trade route was from Agra to Lahore, with the intermediate
stops being Delhi, Panipat, Sirhind and Samana. Another crucial route linked Kashmir
to Lahore. In addition to caravans that regularly assembled at Lahore to pass into
Qandahar, it was very well connected to Kabul - from where the Central Asian market
goods entered its soil.
Qandahar was strategically located on the main road from Persia to India. it was also
the meeting place for caravans from Persia, India and Central Asia. The Mughals and
Safavids fought a number of wars for obtaining access to this route during the first half
of the seventeenth century. According to Thevenot, the Mughals earned revenue worth
the sum of 16-17 million rupees annually from this trade route.Punjab and Sind lay in
close proximity to Qandahar as they were to Delhi and Agra, rather closer. It was
easier to transport goods to the former and expensive to the latter due to the silting of
the Indus.
The most frequented overland trade route during the medieval period was the great
silk route — which began from Beijing and passed through Central Asia via Kashghar,
Samarqand, Balkh and Kabul. This route was connected to the Indian hinterlands at
Lahore. After crossing Euphrates it reached Aleppo, from whence commodities were
shipped to Europe.

7.3.3 Merchants, Commodities of Trade and the Market

The Indian merchants played a central role in the Asian trade. Though the bulk volume
of this trade was carried through the medium of sea, there was a considerable amount
that was carried on overland as well. Regular trading traffic was carried on from focal
points such as Lahore, Kabul, Multan and Qandahar. Goods from Persia and other
middle-eastern countries were also exchanged regularly. You shall read about the various
trading communities and commercial practices adopted by them in detail in Unit 9 of
this course.
Traders from the north-western provinces of Mughal empire dominated this trade during
the seventeenth and eighteenth centuries. Khatris marked a peculiar presence in this
trade with the rise of Mughal power in India4. As mentioned earlier, with the increasing
control being exerted by European powers over the sea-routes, the caravan trade
grew in scope and expanse. Pack animals constituted as the main means of
transportation. They had to be unloaded every day for rest. Overland trade routes
gained such degree of importance during this time that in an agreement of the Armenians
3
Multanis were the most actively engaged trading community, carrying commercial transactions in
Samarqand. As early as 1326, Indians were reported to be notable visitors in the region. In the
fifteenth century, Indians find mention in the sale and purchase deeds of the region (Alam, 1994: 203).
4
Their precursors were the Hindu Multanis. Until about the end of the sixteenth century, merchants
from all parts of the subcontinent were seen participating in this trade. This included the Deccani
merchants in Kabul and Peshawar. Many Iranians were also found at the courts of Deccan
Sultanates. 107
Production and with the English (1688), the former were asked to pledge to give up the export of
Commercial Practices
Indian goods by land-route and rather send these on Company ships.
Merchants preferred to travel in caravans5 from the point of safety and defence as the
caravan leader took care in matters of tolls and duties, resolved the issues pertaining to
officials and petty disturbances, amongst others. Apart from the caravan leader or
chief of the caravan, there was another important trader — the caravan-bachi — who
used to judge along his side any disputes that arose between merchants on the way.
The caravan-bachi used to take important decisions for the entire caravan such as
chose places for lodging at night and discharging several small duties. Merchants such
as Armenians and Banias were frugal by nature and generally carried most of their
provisions.
Caravan sarais were built across the country, mostly at the expense of nobles. There
were very few places where there was no caravan sarai. The magnitude of these
structures differed with respect to the importance of the town, the size of the halting
caravans and how frequented it was. See unit 13 for more details. For the caravan
sarai at Isfahan, Travernier advised merchants to take the rooms on the upper floor as
they were three times cheaper than the ones below. At times, separate stables were
constructed for the horses that were well roofed and commodious. Not only did a
strategically located town earn from the caravans entering its borders, but also from
the provisions consumed during their stay.
Some of the Indian merchants brought master weavers from the country and encouraged
them to settle into neighbouring regions such as Samarqand. Apart from the banias,
Armenian and Persian merchants were engaged in the trade carried between Persia
and India. Others included the Afghans, Barkis, Hazaras, Imaqis, Khurasanis, Multanis,
Tajiks and Uzbeks. In addition to these trading groups, pastoral nomads (also known
as Powindas) transmitted trade in the region.
Armenian merchants were acknowledged across the world for their thrift and aptitude.
they had a very well-knit network of trade. Their settlements were found at all significant
transit points on this overland trade. They saved on expenditure while travelling in
groups, thereby reducing the overhead costs incurred. John Fryer has mentioned about
their caliber:
…being expert at bargains wherever they come, evading thereby brokeridge, and
studying all the arts of thrift will travel for fifty shillings where we cannot for 50
thomands.
For all the merchant communities engaged in trade, it was a struggle to maintain status
and the trust of authorities and people so as to promote their trade. All this had to be
done while they were operating across regions and frontiers. Not only did they have to
earn the favour from the ruling regime, but they also had to create a niche for their own
autonomous organization in distant places. Eventually, they thrived in separate residential
clusters and resolved their commercial issues according to their own customs and rules.
Commodities of Trade and the Market
As mentioned above, the Mughal economy was largely an agrarian economy. Therefore,
foodgrains constituted the commodity of primary importance under the Mughal

5
Caravans usually consisted of both horses and camels, with the merchants riding the horses and
the camels used for carrying the burden of goods. The halting points were governed by topography
108 of the region.
trade.Next commodity of importance was the cotton cloth. Apart from the fine varieties Inland Commerce
to the like of exquisite muslins from Dacca and notable gold embroideries manufactured
in Gujarat, relatively coarse varieties of cotton were traded across different regions of
the country.
In addition to the finished consumption goods, trade was carried in intermediate goods
and raw materials. Regions rich in certain minerals and metals served the requirements
of other regions where specialized manufacturing units were set-up. This led to an
entire network of trade where regions were inter-dependent for production and supply.
One such example that can be cited was the inter-dependence of Bengal and Gujarat.
Raw silk was carried from the former to the latter via land-cum-river route for the
thriving silk textile industry of Gujarat. In exchange, Gujarat supplied cotton for the
flourishing cotton textile industry in Bengal.
Inter-dependence on a regional level was thus quite high, keeping in mind the factors
such as high cost of transportation and burden of taxes imposed thereto. The proportion
of coarse cotton cloth as a constituent of trade carried between Indian and its
neighbouring regions was much larger than the one carried on the inter-regional level
within the subcontinent. Such a composite nature of commodities definitely raises
questions over the ‘small-scale peddling nature’ of Asian trade as characterized by
Jacob van Leur.
Indigo was another commodity, majorly produced in Agra and Ahmedabad regions,
that was extensively traded in Mughal India. It was used in the textile manufacturing.
The major commodity that found way from India to Central Asia was a wide variety of
textiles. Other important commodities of trade included spices, sugar, precious stones
as well as horses. The principal imports from Central Asia included horses, dry and
fresh fruits, furs, corals, falcons and musk. Mughal Emperor Jahangir (1605-1626)
received grapes and apples from Samarqand. In the second half of the seventeenth
century, Bernier mentioned about the sale of Central Asian fruits even in the Deccan.
Horses were imported into India since the early middle ages. The trade in horses was
profitable throughout the medieval times. According to Babur, seven to ten thousand
horses arrived in Kabul every year in the sixteenth century. This trade diminished only
in the nineteenth century.
There exists a fairly long list of commodities that was traded during the course of this
time-period in Indian history with the neighbouring countries. The chints of Delhi, pepper
and spices of Masulipatam, textiles of Bengal and sugar from Samana. Indigo from
Lahore was so popular a commodity that reached Europe through the Agra-Lahore
route that it came to be referred to as the Lahori indigo. Merchandise also reached
Lahore from Kashmir, especially shawls.
After the banning of transporting iron, copper and steel by the Portuguese via sea
route, these commodities were transported overland to Persia. Tobacco was another
commodity that was traded in considerable quantity. The balance of trade is said to
have been in favour of India, with hardly much goods being received from Persia.
They were mostly luxury goods, with pearls reckoned as the best commodity taken
to India. Broadcloth also arrived in great quantities in the markets of Agra, Delhi and
Lahore.
The imports constituted of commodities such as horses, coffee, rosewater and ivory.
Precious metals were the most important commodity of import into India, especially 109
Production and silver rials and ducats. Most of these coins came from Europe via the Red Sea and
Commercial Practices
Persian Gulf. Europe received its silver supply from the New World. These silver coins
drived the Mughal Indian economy where domestic production was almost negligible.

7.3.4 Trade, Commerce and the State

Trade constituted an important source of revenue for the state. Protection of trade was
essential to rulership. Rulers of different regimes and countries recognized the necessity
of extending protection to the land routes, despite their political differences. There
existed a close relationship between trade and politics. Letters were exchanged between
the Mughal emperors and Persian and Uzbek rulers through the medium of merchants
on the move.
The state authorities undertook efforts to provide facilities to the growing trade and
commerce. The massive road construction done by Sher Shah Suri is one such example.
He built the road between Agra and Burhanpur, another road from Agra to Jodhpur
and Chittor. He also built many rest house on the road from Lahore to Multan. Many
towns emerged along side the grand trunk road to Kabul. The bustling towns around
the trade routes led to economic progress in the countryside.
The fortunes of the traders were intrinsically tied to that of the state and ruling elites.
We should keep in mind that not only did the ruling class provide security to their trade,
but the bulk of demand for luxury goods came from their class. This demand was tied
to the high claim made over the agrarian surplus circulated in the market. On the other
hand, members of the ruling elites also participated in trade. It was a two-way
relationship. Aurangzeb, while being a prince, made an attempt to build his own port in
the region of Sind. Similarly, many nobles of the Mughal regime were mentioned in the
sources as being merchants themselves or those belonging to a family of merchants6.
Taxation
The importance of few commodities to the empire is borne out by the imposition of
taxation on them. The differential rates of customs duty reflect on the importance of a
commodity. For instance, the precious metals whose regular import was crucial for the
currency system of the Mughal empire. Whereas, on the other hand, ordinary trade
goods had to pay a customs duty of 3½ per cent, the custom duty on precious metals
was 2 per cent only (Prakash, 1981: 177).
The taxation policy changed periodically under the Mughal regime. Emperor Jahangir
abolished the customs imposed on trade carried with Kabul and Qandahar. Also,
during times of famines taxes were abolished or remitted. According to the imperial
orders issued by the emperors, the taxation policy appears to be lenient on merchants.
While, in practice, the records reflect upon the exploitative nature of taxation that the
merchants had to face at the hands of local officials. We come across various petitions
and grievances being raised by individual merchants, merchant communities and foreign
trading companies complaining of official high-handedness. Instead of all these difficulties,
trade continued to flourish and attracted merchants from many countries to the
subcontinent.
Administrative Positions
In addition to other obligations, the rulers were responsible in keeping the trade routes
safe. Governors of provinces were held responsible by the rulers in case of robberies

6
110 Refereed to as tijarat-pisha and tajir-zadeh, respectively.
and loot. They were to inform the rulers about the arrival of caravans in their provinces. Inland Commerce
Special appointments were made so as to keep the routes safe — both at inland and
overland trade routes. For instance, the Mughals appointed twenty-three nobles between
Lahore and Multan to safeguard the caravans from attacksmade by the Pathans.
Traders saw themselves as allies of the rulers. For example, the Khatris had long
association with the Mughal administration. They held various positions in the Mughal
state, ranging from nobles (amirs) of high ranking to local officials in the subas to petty
functionaries (mutasaddis) in the revenue departments of the establishment.

7.4 THE CASE OF AWADH

Due to the expansion of trade and commerce in the second half of the sixteenth century,
travel was undertaken at an increasing frequency. This created a corresponding demand
of improvised facilities such as sarais. Few of these structures, mentioned as sarais7 in
the accounts of travellers, have survived. The clusters with a larger number of sarais
have been located in areas of high concentration of population during the medieval
times. These were largely — Aligarh, Pratapgarh, Patti, Sambhal, Sikandara and Soraon.
These sarais in the region lay at the juncture of important trade routes such as Agra to
Banaras, Delhi to Faizabad, Delhi to Agra via Aligarh, and Kheri to Faizabad. The
route from Kheri to Faizabad traversed the crucial cotton weaving belt. The trade in
cotton and calicoes connected Kheri and Faizabad to the main trunk road at Allahabad.
The varying number of sarais located at alternative routes were indicative of changing
preferences of trade routes in the second quarter of the seventeenth century.
Establishment of sarais at some places reflected on the political developments in the
region. For example, three saraiswere built at Sadabad after the wazirof Shahjahan,
Sadullah Khan, established the town. While at other times, where no fixed pattern is
discerned, two or more sarais are visible at shorter distances which suggest the
availability of such facilities for traders at feeder channels connecting neighbouring
localities with the main trunks. Such isolated sarais could have served as centres of
production or market centres, catering to the needs of the inhabitants.
With the decline of imperial centres of power, by the end of the century, new towns
were established. Some of them included Faizabad in Awadh (founded by Sadat Khan),
Lucknow (Nawab Asafuddaula made it his capital), Farrukhabad(founded by
Muhammad Khan Bungush) and Najibabad (founded by Najibuddaula). The rebuilding
of towns or establishment of new towns was suggestive of the shifts in the flow of
trade. Despite the decline of imperial cities and military expeditions, the factors that
sustained urban growth in early modern India continued to operate, and based on
these factors towns like these could still flourish.
Check Your Progress 1
1. Write a short note on the following:
a) Caravan sarais
b) Khatris

7
The District Census Statistics (1951) contain the names of villages and localities in each pargana
that carried the label of sarai in their names. 111
Production and c) Sources for the study of Inland Commerce
Commercial Practices
d) Major Inland Trade Routes under the Mughals
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2) List major overland trade routes of the Mughal Empire. Mention the major
commodities of trade between India and Central Asia during this period.
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3) Discuss the factors responsible for the expansion of trade under the Mughal Empire.
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4) Discuss the relationship between trade and state under the Mughals.
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7.5 SUMMARY
Before the seventeenth century, different states existed across the subcontinent: ranging
from the Mughal Empire; and the Maratha state in the northern and central region;
Bijapur, Golconda and Vijaynagar in the South. The economic history of earlier period
is incomplete if confined to any one particular region. By the end of the seventeenth
century, almost all of the subcontinent came under the rule of Mughals. The economic
development of India during the period of our study, thus, belonged largely to the
Mughal Empire. During the course of this century, European trade also entered the
112
scenario. By the middle of the eighteenth century, this trade entered its expansionist Inland Commerce

phase, which grew from having a maritime presence to inroads into the inland commerce
and a dense trade network.
Expansion of trade and growth of fiscal system, along with the growth of the agency of
bankers to remit revenue to the centre were some of the chief characteristics of the
Mughal economy in the seventeenth century. These characteristics integrated the trade
related and monetary aspects of the economic system. The engagement of nobles and
rulers in the trade and commerce was quite evident. While the cash transfer by imperial
agents continued, fiscal transactions came to be carried increasingly through the medium
of bankers and hundis (bills of exchange).
The trading pattern and economy of the Mughal empire got disrupted by the end of the
century. The state revenue declined sharply. There were rural and urban disturbances
along with the Sikh risings. Some merchant groups migrated to the east, others moved
to the south of Multan, while few others maintained their trade and forged new
partnerships to gradually retain their earlier position. Therefore, instead of a generalized
crisis, there has emerged evidence of a dynamic economy in the late seventeenth and
eighteenth centuries. This evidence has led to the re-evaluation of the theories related
to the decline of the Mughal empire.
By the second half of the eighteenth century, the subcontinent began to feel the effect of
colonial rule and their economic interference. This proved to be a turning point in the
history of Indian economy, that had a bearing on the various commercial and productive
processes.

7.6 KEY WORDS

Baggal : The term was frequently used by Muslim writers in India to denote
members of the baniya caste
Bohras : Muslim trading community of Gujarat.
Hundi : A bill of exchange/draft.
Karwanis : Grain-traders who were further divided into two kinds - saudagaran-
ikarwani, the transport merchants and saudagaran-ibazari, the market
merchants
Vyopari : Trader
Zakat : Customs Duty

7.7 ANSWERS TO CHECK YOUR PROGRESS

EXERCISES
Check Your Progress 1
1) a) See Sub-section 7.2.3; b) See Sub-section 7.2.3; c) See Section 7.2; and
d) See Section 7.2.1
2) See Sub-section 7.2.2
3) See Section 7.1 and 7.3 113
Production and 4) See Sub-section 7.2.4
Commercial Practices
5) See Section 7.3
Recommended Readings
Alam, Muzaffar. 1994, ‘Trade, State Policy and Regional Change: Aspects of Mughal-
Uzbek Commercial Relations, c. 1550-1750’, in Journal of the Economic and Social
History of the Orient, Vol. 37, No. 3, pp.202-227.
Chandra, Satish. 1959, ‘Commercial Activities of the Mughal Emperors during the
Seventeenth Century’, in Proceedings of the Indian History Congress, Vol. 22,
pp.264-269.
Chaudhuri, K. N. 1990. Asia before Europe: Economy and Civilization of the
Indian Ocean from the Rise of Islam to 1750. Cambridge: Cambridge University
Press.
Chaudhuri, K. N. 1978. ‘Some Reflections on the Town and Country in Mughal India’,
in Modern Asian Studies, Vol. 12, No. I, pp. 77-96.
Chicherov, A.I. 1971, India: Economic Development in the 16th-18th Centuries:
Outline History of Crafts and Trade. Moscow: Central Department of Oriental
Literature.
Moosvi, Shireen. 2008. People, Taxation and Trade in Mughal India. Oxford:
Oxford University Press.
Prakash, Om. 1981. ‘Presidential Address: Some Aspects of Trade in Mughal India’,
in Proceedings of the Indian History Congress, Vol. 42, pp.173-187.
Qaisar, A.J. 1974. ‘The Role of Brokers in Medieval India’, in The Indian Historical
Review, Vol. I, No. 2, pp.220-222.
Raychaudhuri, Tapan& Habib, Irfan. ed. 1982. The Cambridge Economic History
of India, Vol. I: c. 1200-1750, London: Cambridge University Press.
Sources for the Study of Economic History of Medieval Period | Vidya-mitra
https://www.youtube.com/watch?v=88XQIi_wKxE&list=PL_a1TI5CC9RHAwe
DRQ4pPwiQq4SWXZB1-&index=3
Mughal Empire: Trade and Monetary System | e-Pathshala | MHRD
https://www.youtube.com/watch?v=AIL-adfuybI
Markets and Internal Trade in Mughal India (History of India c.AD 1550-
1750) | Vidya-mitra
https://www.youtube.com/watch?v=FWuMZLzhFrM
Early European Trade and Commerce | Vidya-mitra
https://www.youtube.com/watch?v=m8yiyY0g0J4

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