South India - Chola Economy

The Chola kingdom had a strong and well developed economy. Villages were completely self sufficient and were able to satisfy most of the needs of the villagers. They grew their own food, manufactured their own clothes and had their set of craftsmen and other professionals to full cater to the majority of their requirements. Hence there was no major surplus for everything was used within the village itself. This however began to change with the growth of towns and foreign trade. The demand for commodities went up and villages then began producing surplus goods for sale, with the monetary system entering the rural economy.

Guilds continued to be an important part of industry and were centered mainly In the towns. Besides manufacturing there was now the new concept of merchant guilds, who specialized in the procurement and distribution of goods. With the flourishing foreign trade of that time there was tremendous internal as well as external demand for goods and hence they formed a vital part of the economy. They were actively supported by the state, which would assist them if they faced difficulty in negotiations with a foreign country. The state however did not interfere directly with the functioning of the guilds. The guilds were

very prosperous and had tremendous influence on the economy. Interestingly however, they never aspired for political power, perhaps because they needed the support of the state in matters of trade and defence. It was essentially a symbiotic relationship, for the state too required the guilds, for they were instrumental in maintaining a healthy economy.

India had flourishing trade relations with many parts of the world during the time of the Cholas. The Chola kingdom was located in South India which had greater access to the sea and was the hub for sea trade. It had trade relations with many Asian and European countries. It was an important trading partner of China, which impressed by the revenue they were earning granted the Chola merchants a monopoly, a step that naturally was economically beneficial to the Chola merchants. South India also became instrumental in facilitating sea trade between Asia and Europe with many countries routing their goods through them. The main exports were elephants, horses, spices, perfumes, precious stones and superior quality textiles in addition to metalware, jewellery, pottery and salt. In fact the flourishing export trade, resulted in many industries producing solely for export purposes.

The Chola kingdom had a strong and well developed economy. Villages were completely self sufficient and were able to satisfy most of the needs of the villagers. They grew their own food, manufactured their own clothes and had their set of craftsmen and other professionals to full cater to the majority of their requirements. Hence there was no major surplus for everything was used within the village itself. This however began to change with the growth of towns and foreign trade. The demand for commodities went up and villages then began producing surplus goods for sale, with the monetary system entering the rural economy.

Guilds continued to be an important part of industry and were centered mainly In the towns. Besides manufacturing there was now the new concept of merchant guilds, who specialized in the procurement and distribution of goods. With the flourishing foreign trade of that time there was tremendous internal as well as external demand for goods and hence they formed a vital part of the economy. They were actively supported by the state, which would assist them if they faced difficulty in negotiations with a foreign country. The state however did not interfere directly with the functioning of the guilds. The guilds were very prosperous and had tremendous influence on the economy. Interestingly however, they never aspired for political power, perhaps because they needed the support of the state in matters of trade and defence. It was essentially a symbiotic relationship, for the state too required the guilds, for they were instrumental in maintaining a healthy economy.

India had flourishing trade relations with many parts of the world during the time of the Cholas. The Chola kingdom was located in South India which had greater access to the sea and was the hub for sea trade. It had trade relations with many Asian and European countries. It was an important trading partner of China, which impressed by the revenue they were earning granted the Chola merchants a monopoly, a step that naturally was economically beneficial to the Chola merchants. South India also became instrumental in facilitating sea trade between Asia and Europe with many countries routing their goods through them. The main exports were elephants, horses, spices, perfumes, precious stones and superior quality textiles in addition to metalware, jewellery, pottery and salt. In fact the flourishing export trade, resulted in many industries producing solely for export purposes.