UPSC MainsHISTORY-PAPER-I201420 Marks
Q17.

Analyse the Mughal monetary system and examine their policy of minting of coins.

How to Approach

This question requires a detailed understanding of the Mughal monetary system, its evolution, and the policies governing coin minting. The answer should cover the pre-Mughal situation, Akbar’s reforms, subsequent changes under Jahangir, Shah Jahan, and Aurangzeb, and the economic implications of these policies. Structure the answer chronologically, highlighting the key features of each period. Focus on the types of coins, metallic composition, and the administrative structure of the mints.

Model Answer

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Introduction

The Mughal Empire, spanning over three centuries (1526-1857), witnessed a sophisticated and well-organized monetary system crucial for its economic prosperity and administrative efficiency. Prior to the Mughals, the Indian subcontinent had a diverse range of coinage systems, often fragmented and localized. The establishment of a unified monetary system under the Mughals, particularly during Akbar’s reign, was a landmark achievement. This system, based on silver and copper coins, facilitated trade, revenue collection, and the overall economic integration of the empire. The Mughal policy of minting coins wasn’t merely about currency; it was intertwined with imperial authority, economic control, and artistic expression.

Early Mughal Period (Babur & Humayun)

Babur and Humayun, facing constant military campaigns and limited resources, largely continued the existing monetary systems inherited from the Delhi Sultanate and the Lodi dynasty. The predominant coins were silver rupees, often based on the weight standards of the earlier rulers. There wasn’t significant innovation during this period, and the focus was on maintaining the existing currency rather than introducing new systems. The coins often bore the names of the rulers and religious inscriptions.

Akbar’s Monetary Reforms (1556-1605)

Akbar’s reign marked a turning point in the Mughal monetary system. Recognizing the need for a standardized and reliable currency, he initiated comprehensive reforms:

  • Introduction of the Silver Rupee: Akbar standardized the silver rupee, fixing its weight at 179.3 grams. This became the foundation of the Mughal monetary system.
  • Copper Coins (Dam): He introduced copper coins called dam, which were used for smaller transactions. The ratio between silver and copper coins was carefully regulated.
  • Minting System: Akbar established a centralized minting system with several mints across the empire, including Agra, Delhi, and Lahore. These mints were under the control of a Dar-ul-Zarb (mint master).
  • Coinage Inscriptions: Akbar’s coins featured Islamic calligraphy, imperial titles, and the mint name and year of issue. This served as a symbol of imperial authority.

These reforms facilitated trade, simplified revenue collection, and strengthened the empire’s economic base.

Jahangir’s Period (1605-1627)

Jahangir largely continued Akbar’s monetary policies, but he introduced some changes:

  • Weight Reduction: He slightly reduced the weight of the silver rupee to 175 grams.
  • Introduction of Mahmudi: Jahangir introduced a gold coin called Mahmudi, though its circulation was limited.
  • Artistic Flourish: Jahangir’s coins were known for their artistic quality and intricate designs, reflecting his personal interest in art and aesthetics.

Shah Jahan’s Period (1628-1658)

Shah Jahan’s reign saw further refinement of the Mughal monetary system:

  • Further Weight Reduction: The weight of the silver rupee was reduced again to around 167 grams.
  • Standardization of Coinage: Shah Jahan focused on maintaining the standardization of coinage across the empire.
  • Expansion of Minting Network: He expanded the network of mints, establishing new ones in strategic locations.

Shah Jahan’s coins were renowned for their elegance and precision.

Aurangzeb’s Period (1658-1707)

Aurangzeb’s long reign witnessed a gradual decline in the quality and stability of the Mughal monetary system:

  • Continued Weight Reduction: The weight of the silver rupee continued to be reduced, reaching as low as 160 grams. This was partly due to financial pressures caused by prolonged wars.
  • Debasement of Coins: There was a tendency towards debasement of coins, with a reduction in the silver content.
  • Increased Regional Variations: Regional variations in coinage became more pronounced, reflecting the weakening of central control.

The economic consequences of Aurangzeb’s policies, including excessive taxation and prolonged warfare, contributed to the decline of the Mughal economy and the monetary system.

Administrative Structure of the Mughal Mints

The Mughal mints were highly organized institutions. Key officials included:

  • Dar-ul-Zarb (Mint Master): The overall in-charge of the mint.
  • Qazis (Judges): Responsible for verifying the weight and purity of the metal.
  • Amils (Accountants): Maintained the accounts of the mint.
  • Nakash (Engravers): Designed and engraved the coins.

The mints operated under strict regulations to ensure the quality and integrity of the coinage.

Ruler Rupee Weight (approx.) Key Features
Akbar 179.3 grams Standardization of Rupee, introduction of Dam
Jahangir 175 grams Introduction of Mahmudi, artistic designs
Shah Jahan 167 grams Further standardization, expansion of mints
Aurangzeb 160 grams (and lower) Debasement of coins, regional variations

Conclusion

The Mughal monetary system, particularly the reforms initiated by Akbar, played a vital role in the economic and administrative consolidation of the empire. While subsequent rulers continued to refine the system, the gradual debasement of coins and weakening of central control under Aurangzeb contributed to its decline. The Mughal coinage not only facilitated economic transactions but also served as a powerful symbol of imperial authority and artistic achievement, leaving a lasting legacy on the Indian subcontinent. The system’s eventual decline mirrored the broader weakening of the Mughal Empire itself.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Dam
A copper coin introduced by Akbar as a small denomination currency for everyday transactions. It was a crucial component of the Mughal monetary system, facilitating trade at the lower end of the economic spectrum.
Mahmudi
A gold coin introduced by Jahangir, though its circulation was limited compared to the silver rupee. It was intended for larger transactions and represented a higher value denomination.

Key Statistics

The silver content in the Mughal rupee gradually decreased from approximately 91.7% under Akbar to around 80-85% under Aurangzeb.

Source: Irfan Habib, *An Atlas of Mughal India* (1982)

During Akbar’s reign, the Mughal empire’s revenue increased by approximately 200% due to the standardization of the monetary system and improved revenue collection methods.

Source: Satish Chandra, *History of Medieval India* (2007)

Examples

Minting at Surat

The mint at Surat, a major port city, played a crucial role in facilitating trade with European powers. Coins minted at Surat were widely accepted in international commerce, demonstrating the Mughal monetary system’s integration with global trade networks.

Frequently Asked Questions

What was the significance of the inscriptions on Mughal coins?

The inscriptions on Mughal coins were not merely decorative. They served multiple purposes: proclaiming the ruler’s legitimacy, asserting religious beliefs, indicating the mint location and year of issue, and showcasing the artistic and calligraphic skills of the time. They were a powerful tool for imperial propaganda and cultural expression.

Topics Covered

HistoryEconomyMughal EmpireEconomic PoliciesCurrencyMinting