Introduction & Summary
The Mughal Empire (16th-18th centuries) presided over a vast and complex economy, characterized by a predominant agrarian base, flourishing internal and external trade, and highly skilled artisanal production. While agriculture formed the backbone, providing sustenance and the bulk of state revenue, vibrant commercial activities connected various parts of the empire and linked India to global trade networks. The Mughal state played a significant role through its land revenue system, currency policies, and patronage of crafts. However, the economy also witnessed significant disparities in wealth and periodic agrarian distress. Understanding the Mughal economy is crucial for appreciating India's pre-colonial economic dynamism and the context for subsequent colonial interventions.
Sources Utilized (Illustrative):
- NCERT: Class 7 "Our Pasts II", Class 12 "Themes in Indian History Part II".
- IGNOU: BA History (EHI-04: India from 16th to Mid-18th Century).
- Standard Reference Books: Satish Chandra, Irfan Habib, Shireen Moosvi, Tapan Raychaudhuri & Irfan Habib (eds.) etc.
- Government Sources: Ministry of Textiles, GI Portal.
- Web Sources: Academic journals, museum websites.
5.4.1: Agriculture – Backbone of the Economy
Land Classification
Polaj (continuously cultivated), Parauti (fallow 1-2 years), Chachar (fallow 3-4 years), Banjar (uncultivated 5+ years). Basis for revenue assessment.
Land Tenures & Classes
Zamindars (hereditary chiefs, intermediaries, primary), Raiyyat (Khudkasht - resident owners, Pahikasht - non-resident). Malikana for proprietary rights.
Crop Patterns
Staples: Rice, wheat, millets. Cash Crops (Jins-i-kamil): Cotton, Sugarcane, Indigo, Opium, Tobacco (Portuguese intro, c. 1605).
Means of Irrigation
Wells (Rahat/Persian Wheel most common), Canals (e.g., Shah Nahar), Tanks & Dams (South India). State and local efforts.
Agrarian Relations
Hierarchical: State > Jagirdars > Zamindars > Peasants. Land Revenue (1/3rd to 1/2 of produce), Abwabs (cesses).
Distress & Revolts
High demand, oppression, famines. Jat, Satnami, Sikh, Maratha revolts had agrarian underpinnings. Gujarat-Deccan Famine (1630-32) was severe.
Table 5.4.1: Key Aspects of Mughal Agriculture
| Feature | Details |
|---|---|
| Land Classification | Polaj, Parauti, Chachar, Banjar |
| Key Tenures/Classes | Zamindars (chieftains, intermediaries, primary), Raiyyat (Khudkasht, Pahikasht), Jagirdars |
| Dominant Crops | Food: Rice, wheat, millets. Cash: Cotton, sugarcane, indigo, opium, tobacco |
| Irrigation Tech | Wells (Persian Wheel/Rahat), Canals (Shah Nahar), Tanks |
| Revenue System | Land revenue (Mal/Kharaj) as primary source, cesses (abwabs). Systems like Zabti, Nasaq, Batai. |
| Major Famine | Gujarat-Deccan Famine (1630-32) |
| Key Revolts | Jat, Satnami (often linked to agrarian distress) |
5.4.2: Trade and Commerce
Internal Trade
Flourishing and extensive, connecting different regions. Facilitated by stable political conditions, roads, sarais (rest houses), and uniform currency. Banjaras were nomadic traders in bulk goods.
External Trade (Maritime)
- Major Ports: Surat (chief), Cambay, Hooghly, Masulipatnam.
- Exports from India: Textiles (Calico, Muslin, Chintz), Indigo, Saltpeter, Spices, Sugar.
- Imports to India: Bullion (Gold & Silver - most significant), Woolen cloth, Metals, Luxury goods.
Merchant Communities & Finance
Diverse and sophisticated mercantile class: Gujarati Banias (Virji Vora), Khatris, Chettis, Bohras. Foreign merchants like Armenians.
Financial System: Shroffs (Sarrafs) - indigenous bankers. Hundi System - bills of exchange for cashless fund transfers, widely used.
Impact of European Trading Companies: Initially stimulated demand and bullion inflow. Later, their growing political and military power led to favorable terms, competition, and eventually the "drain of wealth" (more pronounced post-Mughal).
5.4.3: Handicrafts, Karkhanas, & Urban Centers
Handicrafts: High Quality & Specialization
- Cotton: Muslin of Dacca (fineness), Calico (Gujarat), Chintz (Coromandel - printed/painted).
- Silk: Bengal, Gujarat, Agra, Banaras (fine fabrics, brocades).
- Wool: Kashmiri shawls (Pashmina), carpets.
- Advanced dyeing and printing techniques.
- Iron & Steel: Wootz steel (South India) for weapons.
- Bidriware: Metal craft from Bidar (silver/gold inlay).
- Shipbuilding: Gujarat, Malabar, Bengal (large ocean-going vessels).
- Stone carving, Ivory work, Pietra Dura (inlay), Carpet Weaving.
Karkhanas & Urban Centers
Karkhanas (Imperial Workshops)
Maintained by emperor & nobles. Employed skilled artisans (wage/feudal). Produced luxury items for elite, military equipment. Not modern factories, but centralized craft production.
Urban Centers: Growth & Characteristics
Significant urban population (~15%).
- Major Centers: Agra, Delhi (Shahjahanabad), Lahore, Surat, Ahmedabad, Dacca, Masulipatnam, Banaras.
- Characteristics: Administrative seats, trade hubs, craft production centers, cultural hubs, populous and diverse.
5.4.4: Coinage and Currency
Tri-metallic System
- Gold Mohur (Ashrafi): High-value, ceremonial, hoarding. (~11 grams).
- Silver Rupiya (Rupee): Main commercial currency, standard for revenue. Highly uniform (~11.5 grams), widely accepted across Asia. (40 Dams = 1 Rupiya).
- Copper Dam: Low-value for daily transactions/wages. Sub-units (Adhela, Paula, Damri).
Mints (Taksal) & Quality
Numerous mints empire-wide. Strict quality control (purity, weight). Coins bore emperor's name, mint, date (Hijri, sometimes Ilahi era). Known for calligraphic beauty.
Abundance of Silver & Monetization
Large influx of silver from New World (via Europe) due to India's favorable balance of trade. Facilitated monetization of economy, esp. land revenue (cash). Contributed to trade expansion & credit. Linked to price inflation (debated).
Cowries (Shells)
Used for petty transactions, especially rural areas/Bengal/Orissa. Value fluctuated.
Mohur
Gold, High Value
Rupiya
Silver, Standard
Dam
Copper, Daily Use
5.4.5: Standard of Living
Opulence of Ruling Class
Emperor, royal family, high-ranking nobles (Mansabdars, Jagirdars) enjoyed immense wealth. Conspicuous consumption on palaces, servants, fine goods, patronage of arts. Supported by large share of agricultural surplus.
Evidence from Foreign Travellers
Bernier, Tavernier, Pelsaert, Manucci provide vivid accounts. Often highlight extreme wealth of elite and poverty of masses. Bernier noted "general poverty" attributed to jagirdari system. Accounts need critical reading for biases.
Condition of Common People: Debates
W.H. Moreland's View (Pessimistic)
Argued for widespread poverty, declining conditions due to high revenue demand and exploitation. Peasants lived in "abject poverty."
Counter-arguments (Habib, Moosvi, Raychaudhuri)
Acknowledged hardships, but suggested basic necessities were generally available in normal times. Modest but not unmitigated misery. Moosvi's statistics on Ain-i-Akbari suggest comparable per capita food availability to early 20th-century India. Highlighted regional variations and peasant resistance.
Prelims-ready Notes
Agriculture:
- Land Types: Polaj (continuous), Parauti (fallow 1-2 yrs), Chachar (3-4 yrs), Banjar (5+ yrs).
- Peasants: Khudkasht (resident, own land), Pahikasht (non-resident, contractual).
- Cash Crops: Cotton, sugarcane, indigo, opium, tobacco (Portuguese intro).
- Irrigation: Wells (Persian Wheel/Rahat), Canals (Shah Nahar).
- Famine: Gujarat-Deccan (1630-32) severe.
Trade & Commerce:
- Internal: Banjaras (bulk transport), Sarais, river routes.
- External (Overland): To Central Asia (Khyber/Bolan passes). Imports: horses. Exports: textiles, indigo.
- External (Maritime): Ports - Surat (chief), Cambay, Hooghly, Masulipatnam.
- Exports to Europe: Textiles (Calico, Muslin, Chintz), indigo, saltpeter. Imports: Bullion (silver), woolens.
- Merchants: Banias, Khatris, Chettis. Shroffs (bankers), Hundi (bill of exchange).
Handicrafts & Urban:
- Textiles: Dacca Muslin, Coromandel Chintz, Kashmir Shawls.
- Metalwork: Wootz steel, Bidriware. Shipbuilding.
- Karkhanas: Imperial workshops for luxury/military goods.
- Urban Centers: Agra, Delhi (Shahjahanabad), Lahore, Surat. ~15% urban population.
Coinage & Standard of Living:
- Tri-metallic: Gold Mohur, Silver Rupiya (standard, 40 Dams), Copper Dam.
- Mints (Taksal) ensured quality. Influx of American silver fueled monetization.
- Standard of Living: Ruling class extreme opulence. Commoners debated (Moreland vs. Habib/Moosvi). Modest but vulnerable.
Consolidated Table: Mughal Economy Key Terms
| Category | Term(s) | Significance |
|---|---|---|
| Land Type | Polaj, Parauti, Chachar, Banjar | Basis for revenue assessment |
| Peasant Type | Khudkasht, Pahikasht | Differing rights and status |
| Cash Crop | Indigo, Cotton, Opium, Tobacco, Sugarcane | Commercialization of agriculture, key exports |
| Irrigation | Rahat (Persian Wheel) | Common advanced well irrigation technique |
| Revenue | Mal/Kharaj, Abwabs, Zabti, Jagir | State income, peasant obligations, system of assignment |
| Trade Port | Surat, Hooghly, Masulipatnam | Major hubs for maritime trade |
| Export Item | Textiles (Calico, Muslin), Indigo, Saltpeter | Key goods earning bullion for India |
| Import Item | Bullion (Silver & Gold), Horses | India's favorable trade balance; military needs |
| Merchant Group | Banias, Khatris, Chettis, Shroffs | Facilitators of trade and finance |
| Financial Tool | Hundi | Bill of exchange for cashless transactions |
| Coinage | Mohur (Gold), Rupiya (Silver), Dam (Copper) | Standardized tri-metallic currency |
| Workshop | Karkhana | Imperial/noble workshops for specialized production |
| Urban Center | Shahjahanabad, Agra, Lahore | Major administrative, commercial, and cultural hubs |
Mains-ready Analytical Notes
Major Debates/Discussions:
Moreland's Pessimistic View: Widespread poverty, declining conditions due to state exploitation.
Revisionist Views (Habib, Moosvi, Raychaudhuri): More nuanced, basic necessities available in normal times, per capita food comparable to early 20th C. Acknowledge hardship but not unmitigated misery. Focus on regional variations and peasant resistance.
Older Views: Largely stagnant, self-sufficient.
Modern Scholarship: Considerable dynamism – growth of cash crops, trade networks, monetization, credit instruments, urban centers. Dynamic within traditional tech framework. "Great Divergence" debate.
Initial Stimulus: New markets, bullion inflow.
Long-term Consequences: Shift in power, control over routes, undermine Indian merchants, "drain of wealth" (post-1757 more pronounced).
Historical/Long-term Trends & Relevance:
Agrarian dominance, traditional craft techniques, caste in occupation, basic land tenure.
Increased commercialization, monetization (silver influx, cash revenue), urban growth, integration into world economy, rise of new business communities (hundis), intensified pressure on peasantry (Jagirdari system).
Legacy of craftsmanship (GI tags), historical trade patterns, agrarian issues echo today, urban development (heritage conservation), understanding pre-colonial strengths (challenges colonial narratives).
Ongoing GI Tag recognition (Kashmir Pashmina, Bidriware). Heritage conservation (Adopt a Heritage). Textile & craft promotion schemes. New academic research re-evaluating aspects. Context for "Make in India" discussions.
UPSC Previous Year Questions (PYQs)
Prelims MCQs:
1. With reference to Mughal India, what is/are the difference/differences between Jagirdar and Zamindar? (UPSC CSE 2019)
- Jagirdars were holders of land assignments in lieu of judicial and police duties, whereas Zamindars were holders of revenue rights without obligation to perform any duty other than revenue collection.
- Land assignments to Jagirdars were hereditary and revenue rights of Zamindars were not hereditary.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (d) Neither 1 nor 2
Hint/Explanation: Statement 1 is incorrect; Jagirdars were assigned revenue for salary/troops, not mainly judicial/police. Statement 2 is incorrect; Jagirs were transferable (not hereditary), Zamindari rights were often hereditary.
2. Hundis, during the Mughal period, were: (UPSC CSE 1998 - Paraphrased)
- (a) Passes for internal trade
- (b) Bills of exchange
- (c) Official orders
- (d) Land revenue records
Answer: (b) Bills of exchange
Hint/Explanation: Hundis were financial instruments used for transferring money and facilitating trade, akin to modern bills of exchange.
Mains Questions:
1. "The economy of Mughal India was, by and large, self-sufficient, but it was also integrated into the world trade." Comment. (UPSC CSE 1994)
- Introduction: Acknowledge the dual nature of Mughal economy.
- Self-Sufficiency: Predominantly agrarian, local production for consumption, limited dependence on foreign goods for masses.
- World Trade Integration: Exports (textiles, indigo, saltpeter), Imports (bullion, horses, luxury goods). Overland & Maritime routes. Role of ports & merchants. Impact of European companies.
- Analysis: Coexistence of local self-sufficiency with significant external trade driven by demand for Indian goods. Favorable balance of trade.
- Conclusion: Complex, dynamic economy, active in global commerce while maintaining strong internal base.
2. Critically examine the views of W.H. Moreland on the economic conditions of Mughal India. How far do later researches support or modify his conclusions? (UPSC CSE 1986)
- Introduction: Introduce Moreland as pioneering historian.
- Moreland's Thesis: General poverty, oppressive revenue system, declining conditions, negative impact of Jagirdari.
- Later Researches (Habib, Moosvi, Raychaudhuri): Agree on high demand/exploitation. Modify by highlighting periods of growth, commercialization, monetization, urban growth. Moosvi's statistics suggest more complex picture. Emphasize peasant agency, regional variations.
- Critical Examination: Discuss evidence, limitations of data, biases.
- Conclusion: Moreland pioneering, but later research provides nuanced, less bleak picture of Mughal economy.
Original MCQs for Prelims
1. Which of the following accurately describes the "Zabti" system prevalent during the Mughal era?
- (a) A system of hereditary land grants given to religious scholars.
- (b) A method of land revenue assessment based on measurement of land and estimation of yield.
- (c) A military cantonment system for stationing troops in newly conquered territories.
- (d) A specific tax levied on merchants at urban entry points.
Answer: (b) A method of land revenue assessment based on measurement of land and estimation of yield.
Explanation: The Zabti system, prominently used under Akbar (associated with Todar Mal's reforms), involved detailed land measurement (zabt) and assessment based on average yields and prices over a period (dahsala system was a refinement).
2. Consider the following pairs regarding Mughal India's economy:
- Polaj : Land continuously cultivated
- Rahat : A type of ocean-going merchant ship
- Virji Vora : A prominent European trader in Surat
- Saltpeter : Primarily imported from Central Asia
Which of the pairs given above is/are correctly matched?
- (a) 1 only
- (b) 1 and 2 only
- (c) 3 and 4 only
- (d) 1, 2, 3 and 4
Answer: (a) 1 only
Explanation: 1. Polaj was land continuously cultivated - Correct. 2. Rahat was the Persian wheel for irrigation, not a ship - Incorrect. 3. Virji Vora was a very wealthy Indian merchant of Surat, not European - Incorrect. 4. Saltpeter was a major export from India (especially Bihar), not an import - Incorrect.
Original Descriptive Questions for Mains
1. "The influx of silver from the New World significantly impacted the Mughal economy, leading to both monetization and potential inflationary pressures." Elaborate on the mechanisms and consequences of this silver influx during the 16th and 17th centuries.
- Introduction: India's favorable balance of trade led to silver inflow.
- Mechanisms: Role of European companies, trade routes.
- Monetization: Increased minting, cash land revenue, growth of credit (Hundis), stimulated trade.
- Inflationary Pressures (Debate): Argument for (Aziza Hasan, Habib) - increased money supply vs. slower production. Counter-arguments - regional variations, production absorption.
- Other Consequences: Impact on social classes, Mughal state finance.
- Conclusion: Critical factor, fostered commercialization/monetization, but impact on prices/stability debated.
2. Analyze the interplay between the Jagirdari system, agrarian production, and peasant distress during the Mughal period. How did these factors contribute to the crisis of the Mughal Empire in the later 17th and early 18th centuries?
- Introduction: Define Jagirdari as revenue assignment.
- Jagirdari & Agrarian Production: Positive (revenue collection, army support). Negative (frequent transfers -> short-term exploitation, discouraged investment, pressure on peasants/zamindars).
- Peasant Distress: High revenue demand, abwabs, famines, wars. Manifestations: flight, refusal, revolts (Jat, Satnami, Sikh, Maratha).
- Contribution to Imperial Crisis (Jagirdari Crisis): Bejagiri (shortage of productive jagirs) -> reduced noble income, weaker army. Increased peasant oppression. Factionalism. Weakened state authority. Rise of regional powers.
- Conclusion: Flaws in Jagirdari, impact on agrarian relations/peasant welfare, created cycle of exploitation/resistance, significantly weakened Empire.
Conclusion & Significance
The Mughal economy was a dynamic and complex entity, characterized by a strong agrarian base, sophisticated craft production, and extensive trade networks that connected India to the wider world. Its standardized currency, financial instruments like hundis, and bustling urban centers reflected a high degree of economic organization.
Significance:
- Foundation for Later Developments: Economic structures, trade routes, craft traditions laid foundation for later economic changes (including colonial).
- Global Economic Player: Crucial node in early modern global trade (textiles, silver absorption).
- Understanding Pre-Colonial India: Challenges colonial myths of stagnation, reveals period of significant activity and wealth, despite inequalities.
- Lessons in Agrarian Management: Balancing state revenue with peasant welfare, consequences of distress – insights relevant today.
The decline of the Mughal Empire saw a fragmentation of this integrated economy, even as regional economic centers continued to thrive for some time. The groundwork laid during this period, however, profoundly shaped the economic landscape encountered by the rising European powers.