South India - Vijayanagar Economy

The economy of the Viajaynagar empire was essentially unchanged from that of the Chola period. Blacksmiths and carpenters were now in great demand and hence occupied a higher social scale. Meanwhile the guilds continued to have a considerable influence on the economy. The guilds themselves were hierarchical with artists guilds working under merchant guilds, who were now powerful distributors who could influence the functioning of the artists guilds considerably. The economic power of the merchant guilds was considerable and they began commanding political influence as well. Any taxation policy would first have to be cleared with the guild leaders, who were also to some extent representatives of public opinion. The system of credit was controlled by temples who lent money to those who required it and often invested in various development project. Those who could not pay back their dues would have their land taken over by the temple. The temple was often the single largest land owner and consumer of a village, the hub of village economic activity, providing various employment opportunities. Their economic influence forged a closer link between them and the monarchy.

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

The Mughal Empire - Economy

By the time of the Mughals, cities had grown in importance. The expanding economy now needed urbanization and a fixed market in order to succeed. Earlier, there were usually weekly markets where people from surrounding regions would congregate at a particular place on a particular day. Once the economy started growing, many trade centres developed which soon grew into prosperous cities. Many Indian cities of that time, according to travelling foreigners, were better than those in Asia and Europe. Communication and transport facilities had also improved during the time of the Mughals and Sher Shah. There were several metalled highways reaching various places of the empire. River transport was also important, especially those which were navigable throughout the year. River transport was a cheap and fast way of transporting goods over long distances. Bridges were also constructed to speed up the movement of land transport. Such initiatives and conditions were important contributing factors to the development of the economy.

Agriculture continued to remain an important part of the economy, but the crops and techniques still remained largely unchanged. Irrigation was largely absent although some areas did have access to canals and water works. A variety of food and cash crops were grown. The textile industry was booming and hence there was tremendous demand for cotton and silk which were important cash crops. Tobacco, introduced sometime in 1604 also became an important cash crop. One negative aspect of the Mughal administration was that they did not make any major efforts in agricultural development. Hence the citizens

The Delhi Sultanate - Economy

India was a prosperous country during the period. We have accounts of the massive amount of wealth Mahmud of Ghazni had made off with, and even invaders post- Sultanate made off with massive loots. However, the state did not follow a coherent economic policy to guide and develop the economy, except for some isolated cases amongst certain kings. Agriculture still remained the major occupation of the people although many industries had now come up in urban and rural areas. India still retained the industrial organization of the past, and the guilds were still active, surviving the sweeping changes that had knocked out other systems. The guilds continued to do useful work and remained an integral part of the economy. Large scale industry to the extent to which we know it today did not exist. Manufacturers dealt directly with traders, although they did do some retail sales at events like fairs. Important industries of the period were, the textile industry especially the manufacture of cotton, woolen and silk cloth, the dyeing industry, the metal, stone and brick work industries and the sugar industries. Other important industries of the period were shoe making, manufacture of arms, scents, liquor amongst many others. Every town would have a market-place where traders and merchants would come together. Fairs were also an important meeting ground. Inns also became popular market places as they were frequented by travelling gypsies who would

The Gupta Empire - Economy

The economy of the Gupta era continued to have agriculture as an important part but there was significant progress in industry and trade. The guilds that existed in the Mauryan period continued their work and remained centres of organization and were allowed to operate almost free from government control. They were major contributors in the manufactured goods industry. The guilds together formed a corporation of guilds which made a set of laws which all guilds were supposed to follow, and these laws were even respected by the government. Guilds also formed smaller corporations which were made of a particular types of guilds, for instance there were corporations of silk weaver guilds. Such corporations had tremendous resources at their disposal and were involved in various large scale projects like temples. An interesting development was that the Buddhist Church (the sangha) was very rich and participated in commercial activities. It often acted as a banker providing various services like lending money on interest. It was also involved in renting land, an extremely profitable proposition since they received significant grants of land from the kings. The rates of interest for money varied depending on the intended use of the money. Borrowing money for sea trade was no longer as expensive as it was under the Mauryan period

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

Aryans, The Vedic Age - Economy

The Aryan civilization was largely scattered in villages. Our information regarding the organization of the villages is sketchy, we do know however that a Gramani looked after the civil and military affairs of the village. House and arable lands were owned by individuals while the grass lands were probably held by the village as a whole. Land and cattle were important commodities of value. Agriculture was the chief occupation of the people. The use of manure was known and so was irrigation. The main crops were rice and barley. Equally important as agriculture was cattle rearing and the raising of domesticated animals. Cows were considered very important, as their products formed an important part of the diet of the Vedic people. Other important animals were the draught-ox, the horse, the dog, the goat and the sheep. Despite being largely engaged in agriculture and animal rearing, they were also into trade and industry. Commerce was handled by the people known as Panni , who where probably non-Aryan. The chief articles of trade were clothes, coverlets and skins. The main index of value was the cow, but gold also served as a means of exchange. The main industrial activity of the period were the metal, leather, weaving and the wood work industries. Carpenters were in great demand at that period for they made the chariots, wagons, houses and

Indus Valley Civilization - Economy

The Indus Valley Civilization flourished on the fertile plains of the river Indus and its tributaries. Farming was therefore the main occupation of the people. The Indus Valley Civilization was however a highly urbanized civilization. As a result there was a large section of the population that was not directly involved in agriculture but instead relied on the farmers in the rural areas for their food, a pattern which is consistent with cities today. The city dwellers were engaged in occupations like arts and crafts, trade, seal making etc. While definite evidence is still lacking, excavations indicate that there was an organized and complex economic system. One in which the interdependence of the cities and rural areas was marked. We shall now briefly look at the main occupations of the time.

Agriculture-The Indus plains were made fertile by the annual inundation of the river Indus. This river carried far more alluvial soil than many other contemporary rivers like the Nile in Egypt. The farmers

British India - Economy

At the time the British entered India, the economy was flourishing and India was exporting its goods across the world. Indian goods, especially textiles were doing so well in Europe that European manufacturers had to put pressure on their respective governments to regulate the flow of Indian goods into their countries. The entire country was completely self-sufficient right down to the villages. They were able to manufacture what they needed, and what they could not was easily available within the country at reasonable prices.

The British changed all that, they turned the entire economy into an import dependent, non self-sustaining one. When the British were ordinary traders, they were simply another buyer or seller in the market, and hence the forces of demand and supply would dictate the price levels. By the close of the eighteenth Century the industrial revolution was in full swing in Europe. The manufacturing industry was booming, and there was tremendous demand for raw materials. The price levels of goods in India was fairly low, and the English East India Company and its employees were able to make handsome profits. One they became the rulers of India, the situation began to change drastically. They were now able to dictate price levels, and hence substantially increase their profits. They would often use the money they obtained from taxes to