The Mauryan Empire - Economy

The Indian economy was by this time a settled agrarian economy. Animal rearing continued to be an important occupation. Industry and business also flourished . With the development of a strong empire, an organized system of taxation began to evolve. With agriculture being the backbone of the economy it was quickly realized that land revenue was going to be a major source of income from the government. Land was subjected to regular assessments to determine its production capability, and an appropriate level of tax was levied. Industries and enterprises were also taxed, using a vast mix of techniques, all of which were derived from the original land revenue tax system. This entire system was the brainchild of Kautalya, the prime minister of Chandragupta Maurya. With the development of a taxation system, the government now had money to further develop the kingdom. For instance in the field of agriculture, great advancements were made. Irrigation became an important part of Indian agriculture. A governor of Chandragupta Maurya built a dam across the river Girnar, creating a large lake which supplied water to the surrounding region. Records indicate that the dam was maintained for almost eight hundred years after it was built. The setting up of irrigation projects brought up an interesting situation, although it was the responsibility of the

government to develop such projects, the development gave the government more control over an agrarian economy. The government also introduced the concept of state owned farms where the king owned the land and his subjects were employed for its cultivation. This became especially prevalent when new areas like waste land and forest land were brought under cultivation. The government had the resources to organize the procedure and once the land was ready it would employ the cultivator to work on the land. The crops were used to sustain the population that worked on it and the surplus was taken by the government. This policy of the government eased the problem of overpopulation, it would consistently create new areas and send people there to establish new settlements. People generally found the option to relocate attractive as it often made economic sense to do so.

The existence of a stable centralized government, and the unity of the sub-continent that it created resulted in the rapid development of industry. Trade received a major boost as did various craft guilds. Able administration ensured that trade became easier, and the guilds soon developed into small scale industries. The development of guilds was an important step. Guilds were large organizations which employed labour for the particular commodity that they were producing. Over time such employment became hereditary with consecutive generations continuing in the same guild. Artisans willingly joined the guilds for it provided steady employment and was easier than to work alone and to compete against them. The government also found the guilds convenient, for besides organizing and developing industry they also made the process of tax collection and administration easier.

The Maurayan economy was fairly developed for its time. For instance all manufactured goods came stamped with a date, which would then be used by consumers to determine the age of the product. The sale of merchandise was strictly regulated. Prices were monitored to ensure that a merchant was not making too great a profit. A trade superintendent did a careful evaluation of the product, the price, the demand and supply situation as well as the production cost. He would then fix a value for the commodity. On one fifth of this value would be charged a toll, and a further one fifth tax was charged on the toll. Tax evasion did take place, but was heavily punished. There was no formal banking system, however the concept of lending money did exist, and the rate of interest is estimated to have been about 15% per year. For loans in riskier sectors like sea travel the rates were much higher often touching extremely high rates.

The Mauryas had developed extensive trade relations and dealt with several countries like Syria and Egypt in addition to several others in the West. There were many foreign traders who took up residence in Mauryan cities, so much so that there was a separate committee to look after them. There were a variety of goods being exported and imported. The Mauryan kings used to import wines, figs, clothes and beautiful vessels made out of silver. The Mauryan exports were chiefly items of luxury like fine muslin cloth. The development of trade soon became profitable for the empire and eventually a separate department looked after trade and commerce and ensured that a transparent system was put in place. Standard weights and measures were used and all goods bore the official stamp. Towards the later Mauryan period sea trade began to take place, and there is an interesting story behind it.

The early Mauryans were courageous and brave adventurers and during the reign of Eurgetes II (15BC-116BC), a Greek ruler who controlled the areas in the Arabian Gulf, a ship from India was stopped by the coast guard of that kingdom. It had a lone occupant who was half dead. He spoke a strange tongue which they could not understand. He was nursed back to health and taught Greek. He then narrated how he and a group of companions had started off from India, but had lost their course. His companions perished from hunger, and he managed to reach there (Egypt) alone. He proposed a plan by which if they agreed to let him return to his country he would show them the route they could take to reach India by sea. The Greek king sent Eudoxus of Cyzicus along with him. Eudoxus brought back with him many goods like precious stones. There is also another account of how some Indian navigators were blown by storms and eventually reached Germany. It is often said that some of the greatest inventions were accidents, similarly through a series of ventures and a few lucky accidents various sea routes were discovered and sea trade began to take place. The Mauryans soon built ships and hired them out for trade to merchants.

production cost. He would then fix a value for the commodity. On one fifth of this value would be charged a toll, and a further one fifth tax was charged on the toll. Tax evasion did take place, but was heavily punished. There was no formal banking system, however the concept of lending money did exist, and the rate of interest is estimated to have been about 15% per year. For loans in riskier sectors like sea travel the rates were much higher often touching extremely high rates.

The Mauryas had developed extensive trade relations and dealt with several countries like Syria and Egypt in addition to several others in the West. There were many foreign traders who took up residence in Mauryan cities, so much so that there was a separate committee to look after them. There were a variety of goods being exported and imported. The Mauryan kings used to import wines, figs, clothes and beautiful vessels made out of silver. The Mauryan exports were chiefly items of luxury like fine muslin cloth. The development of trade soon became profitable for the empire and eventually a separate department looked after trade and commerce and ensured that a transparent system was put in place. Standard weights and measures were used and all goods bore the official stamp. Towards the later Mauryan period sea trade began to take place, and there is an interesting story behind it.

The early Mauryans were courageous and brave adventurers and during the reign of Eurgetes II (15BC-116BC), a Greek ruler who controlled the areas in the Arabian Gulf, a ship from India was stopped by the coast guard of that kingdom. It had a lone occupant who was half dead. He spoke a strange tongue which they could not understand. He was nursed back to health and taught Greek. He then narrated how he and a group of companions had started off from India, but had lost their course. His companions perished from hunger, and he managed to reach there (Egypt) alone. He proposed a plan by which if they agreed to let him return to his country he would show them the route they could take to reach India by sea. The Greek king sent Eudoxus of Cyzicus along with him. Eudoxus brought back with him many goods like precious stones. There is also another account of how some Indian navigators were blown by storms and eventually reached Germany. It is often said that some of the greatest inventions were accidents, similarly through a series of ventures and a few lucky accidents various sea routes were discovered and sea trade began to take place. The Mauryans soon built ships and hired them out for trade to merchants.