Economy of medieval India

The economy of medieval India begins with the coming of Muslims to India in the early 13^th century. Before discussing the economic history of medieval India, it is essential to have a glimpse of the economy of ancient and early medieval India in the post Gupta period. From the fifth century AD, the practice of land grants became frequent. The Brahmanas were granted villages free from taxes that were collected by the king from the villages. The beneficiaries of this land grants were given the right to govern the people in the donated villages. Till the fifth century, the ruler retained the rights to these land grants, and the Brahmanas not only collected taxes from the peasants and artisans but also maintained law and order in the villages granted to them. Thus, the power of the king was heavily undermined from the end of the Gupta period.

Especially in the post Gupta period the agrarian economy underwent significant changes. Landed beneficiaries could neither cultivate land nor own it. The monasteries and Brahmanas who were the beneficiaries of these land grants hired peasants and slaves to work on these lands. Eventually, a landed aristocracy came to dominate the economy of ancient and early medieval India at the expense of the king. Thus, royal power was eroded and historians have come to use the term Indian feudalism in the context of these land grants.

With the beginning of the Delhi Sultanate the land revenue policy underwent considerable reforms. During the reign of Alauddin Khalji major land, agrarian and fiscal reforms were introduced in north India. Different categories of land existed during the rule of the Delhi Sultanate. The first was Iqta and for administration and land revenue collection, the state was divided into tracts called iqtas under iqtadars or muqtis. An iqta holder collected revenue from the land and remitted the balance to the central government. The iqtadars system as a means of collecting tax and distribution of revenues to the ruling class. The second category of land was khalisa or the royal land. This type of land was under the control of the government.

Alauddin Khalji levied different taxes on lands such as kharaj, charai, and ghari. The whole land was measured and a fixed portion of the state was assessed on the basis of these measurements. In addition to these, the strength of middlemen or khuts, muqaddams, and choudharies was considerably weakened, and thus the produce directly went from the farmers to the state. The revenue administration established by Alauddin Khalji was continued by his successors. Ghiyasuddin Tughlaq the founder of the Tughlaq dynasty fixed the share of state at 1/10^th of the total produce in contrast to Alauddin’s 50 percent. Muhammad bin Tughlaq made several changes in the revenue administration. He ordered the compilation of a register of the expenditure and income of the sultanate and introduced a uniform system of land revenue. He established a department of agriculture called Diwan-i-kohi with the intention of bringing more land under cultivation. Firoz Shah Tughlaq provided loans to the farmers and encouraged irrigation. He had got dug four canals for the purpose of irrigation and increased the salaries of the revenue officers so that the peasants are not harassed by the revenue officials. Firoz Shah introduced four taxes i.e. The Zakat, Jaziya, Khiraj, and Khamo.Khiraj was the land tax, Khams means 1/5^th of the booty captured during wars, Zakat a   tax on Muslims for religious purposes and Jaziya a tax levied on Hindus.

With the beginning of the Mughal rule in the 16^th century the economy of medieval India underwent significant changes. Babur and Humayun continued to follow the land and revenue administration of the Delhi Sultanate. However, it was Akbar who is credited with completely reorganizing the land revenue system. Akbar introduced the Zabti system and under this system, the cultivable lands were measured. After the measurement of the land, the state’s share was assessed on the basis of the produce of the land. The land was classified into four categories Polaj, Parauti, Chachar and Banjar.

Polaj was the first category of land which was readily cultivable. Throughout the season it had some crop ready. The second land was Parauti which was fallow land, Chachar was the third category of land which had to be left for three or four years to regain fertility and the fourth category of land was Banjar or barren land. The state share was calculated on the basis of these three grades of land and their average was the share of the state. The state share was 1/3^rd of the total produce and the share was paid either in cash or kind though the former was preferred.

Another aspect of The Mughal empire was the jagirdari system. The jagirdari system in the Mughal empire was a system in which the jagirdars or nobles were granted jagirs (landed estates) in lieu of their services to the emperor. The jagirdars and the zamindars formed the backbone of the Mughal empire and they were paid in cash or kind. However, in the late 17^th century during the reign of Aurangzeb the jagirdari crisis eventually led to the disintegration of the Mughal empire as there was not enough land for the jagirdars which led to the jagirdars forming their own independent states.

Trade and commerce also played an important role in the economy of medieval India as intra-regional ,inter-regional and external trade contributed to the economy of medieval India.Agra,Burhanpur, Aurangabad, Delhi , and Lahore were the centres of overland trade between India and Central Asia whereas seaborne trade was conducted between Surat,Cambay, Bharuch, and Arabia. North India imported luxury items and exported indigo and food grains. Silk, spices, and various other items were exported by India to other countries. The Bengal Subah alone accounted for over 50% to 80% of the exports and imports of India. By far the most important development in the economic history of medieval India was Hundis (Bills of exchange) as it amounted to cashless transactions in the Mughal empire.

With the beginning of the 17^th century the Europeans came to dominate the Indian trade as various European powers such as Portuguese, British, Dutch, and French established their factories and posts on the coastal cities of India. The Banjaras emerged as the most dominant class of traders in the economy of medieval India. Sultan Alauddin Khalji used the banjaras for the transportation of grain to the city markets. Mughal emperor Jahangir mentions the banjaras as carrying grains on their bullocks and transporting them to the cities. It can be summed up that the economy of medieval India was one of prosperity and growth until the advent of the British rule in India.