UPSC MainsHISTORY-PAPER-I202215 Marks
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Q21.

Trade and commerce in the Mughal Empire brought about the integration of the Indian subcontinent into a single market. Comment.

How to Approach

This question requires a nuanced understanding of the Mughal economic system and its impact on regional integration. The answer should move beyond simply stating that trade increased, and delve into *how* it fostered a unified market. Key areas to cover include the standardization of currency, infrastructure development (roads, sarais), removal of internal tariffs, and the role of different types of trade (domestic, foreign). A chronological approach, highlighting changes under different rulers, would be beneficial. Structure: Introduction, Mughal economic policies fostering integration, impact on different regions, challenges to integration, and conclusion.

Model Answer

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Introduction

The Mughal Empire, spanning from the 16th to the 18th centuries, wasn’t merely a political entity but also a significant economic force. Prior to Mughal rule, the Indian subcontinent was characterized by fragmented regional economies with varying currencies, weights, and measures, hindering inter-regional trade. The Mughals, through a series of deliberate policies, fostered economic integration, effectively creating a single market that facilitated the exchange of goods and services across vast distances. This integration wasn’t simply a byproduct of political unity, but a consciously cultivated outcome of economic policies aimed at maximizing revenue and promoting prosperity.

Mughal Economic Policies Fostering Integration

The foundation of economic integration lay in several key policies implemented by Mughal rulers, particularly Akbar, Jahangir, and Shah Jahan.

  • Standardization of Currency: Akbar introduced the silver rupee (the ‘rupee’ derived from ‘rupya’ meaning silver coin) in 1570, which became the standard currency throughout the empire. This eliminated the complexities of multiple currencies and facilitated transactions. Later, Jahangir and Shah Jahan further refined the monetary system.
  • Infrastructure Development: The Mughals invested heavily in infrastructure. Grand Trunk Road, initially built by Sher Shah Suri, was extended and maintained, connecting the eastern and western parts of the empire. Sarais (rest houses) were constructed along major trade routes, providing safe lodging and amenities for merchants and travelers.
  • Abolition of Internal Tariffs: Internal tariffs and transit duties, prevalent in pre-Mughal India, were largely abolished, promoting free flow of goods within the empire. This reduced the cost of trade and encouraged inter-regional commerce.
  • Land Revenue System: The Zabti system (introduced by Akbar) and subsequent revenue reforms aimed at streamlining land revenue collection. While primarily fiscal, these systems also facilitated the assessment of agricultural output and its movement across regions.
  • Promotion of Crafts and Industries: The Mughals patronized various crafts and industries, including textiles, metalwork, and shipbuilding. This led to specialization in different regions, fostering inter-regional dependence and trade.

Impact on Different Regions

The integrated market had a profound impact on different regions of the subcontinent.

  • Textile Trade: Bengal became a major center for textile production, supplying cloth to markets across the empire and beyond. Agra and Lahore emerged as important centers for processing and distributing these textiles.
  • Agricultural Trade: Agricultural products like wheat, rice, indigo, and opium were traded extensively between different regions. For example, wheat from the Punjab was transported to Gujarat and Maharashtra.
  • Spice Trade: The spice trade, particularly from the south, flourished under Mughal patronage. Spices were transported to northern India and then exported to Europe and other parts of Asia.
  • Mining and Mineral Trade: Regions rich in minerals, such as Rajasthan and Golconda, supplied raw materials to workshops across the empire.

The following table illustrates the regional specialization and trade patterns:

Region Primary Production/Trade
Bengal Textiles (Muslin, Silk), Rice
Gujarat Textiles, Indigo, Opium, Trade with Persia & Red Sea
Punjab Wheat, Wool, Horses
Deccan Spices, Cotton, Iron
Rajasthan Minerals (Zinc, Copper), Livestock

Foreign Trade and its Integration with the Domestic Market

Mughal India was a major player in the global trade network. The empire exported textiles, spices, indigo, and other goods to Europe, Persia, and Southeast Asia. This foreign trade was closely linked to the domestic market. Indian merchants played a crucial role in facilitating this trade, and the revenue generated from exports contributed significantly to the Mughal treasury. The Surat factory established by the British East India Company in 1613 became a major hub for international trade.

Challenges to Integration

Despite the significant progress in economic integration, several challenges remained:

  • Regional Disparities: Some regions remained less integrated than others due to geographical barriers or political instability.
  • Local Autonomy: Powerful local zamindars and chieftains sometimes resisted central control, hindering the implementation of uniform economic policies.
  • Decline in the Later Mughal Period: The decline of the Mughal Empire in the 18th century led to political fragmentation and economic disruption, reversing some of the gains in integration. The rise of regional powers and the increasing influence of European trading companies further undermined the unified market.

Conclusion

In conclusion, the Mughal Empire undeniably fostered the integration of the Indian subcontinent into a single market through a combination of standardized currency, improved infrastructure, abolition of internal tariffs, and promotion of trade. This integration stimulated economic growth, facilitated inter-regional exchange, and connected India to the global trade network. While challenges remained, the Mughal economic policies laid the foundation for a more unified and prosperous India, leaving a lasting legacy on the subcontinent’s economic landscape. However, the seeds of disintegration were sown during the later Mughal period, paving the way for the eventual fragmentation of the Indian economy under colonial rule.

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

Zabti System
A land revenue system introduced by Akbar, based on measurement of land and assessment of taxes based on yield. It replaced earlier systems and aimed for a more accurate and efficient revenue collection.
Serais
Roadside inns or rest houses built by the Mughals along major trade routes. They provided lodging, water, and other amenities for travelers and merchants, facilitating long-distance trade.

Key Statistics

India’s share of global GDP during the 17th and early 18th centuries is estimated to have been around 24%, the largest in the world.

Source: Angus Maddison, *Contours of the World Economy, 1–2030 AD* (2007)

By the 17th century, India accounted for approximately 80% of the world’s cotton textile production.

Source: Irving, R. G. *The Indian Economy, 1600-1938* (1956)

Examples

Indigo Production in Bengal

Bengal became a major center for indigo production during the Mughal period. Indigo was in high demand in Europe for dyeing textiles, and its cultivation and trade generated significant revenue for the Mughal state and local merchants.

Frequently Asked Questions

How did the Mughal land revenue system contribute to economic integration?

The Zabti system, by standardizing land measurement and revenue assessment, facilitated the movement of agricultural produce across regions. It allowed for a more predictable flow of goods and reduced the uncertainties associated with local variations in revenue demands.

Topics Covered

Mughal EmpireEconomyTradeTrade routesMarket integrationEconomic policies