Economic and Cultural Impact of the Mughal Empire

Mughal Economy

The Indian economy was strong till the Mughal times. By 1700, India’s share of world GDP was 24%, the largest in the world, larger than any other region. India, then, was producing about 25% of the world’s industrial output up until the 18th century.

Agriculture

• During the Mughals, large tracts of land were freshly brought under Agriculture, a process that was continued till Aurangzeb. This led to the expansion of the economy and brought revenue to the Empire.
• A large variety of crops were cultivated, such as:
  1. Food grains such as Wheat, rice, gram, barley, pulses, bajra, etc., were cultivated.
  2. Cash crops such as cotton, sugarcane, oil seeds, indigo and chay (the red dye) were also cultivated.
  3. American-origin crops: In the seventeenth century, two new crops were added, Maize and Tobacco.
  4. Silk cultivation became so widespread in Bengal that there was no need to import from China.
• India also exported agricultural products like rice and sugar to some of the neighbouring countries.
• The state also provided incentives and agricultural loans (Taccavi) to the peasants to expand and improve cultivation.
• Taxation/Land Revenue: However, by the end of the 17^th century, the economic situation of the peasantry was in turmoil due to the high rate of taxes. The revenue from the peasantry could go even above 50% in some areas, and as high as 25% of the total produced could be appropriated by the Zamindars alone.

Mughal Currency

• Coins of three metals, copper, silver and gold, were minted. However, the silver coin was the base of the currency.
• Akbar continued the silver currency Rupaya introduced by Sher Shah Suri. It was the principal coin used for business and revenue transactions.
• A gold coin called Ashrafi or Muhr was issued during this period. However, it was mainly issued for hoarding and gifting purposes.
• Dam, a copper coin, was the most commonly used coin in the Empire.
• In coastal areas, sea shells or kauris were also used for petty transactions.

Trade and commerce

• The Banjaras, a class of traders, specialised in carrying bulk goods over long distances.
• Sugar, rice, delicate Muslin and Silk were exported from Bengal.
• Coromandel Coast had become an important centre for textile production, and Lahore was a centre of handicraft production.
• Hundis is a letter of credit used for the easy transmission of money from one place to another.
• Nagarseth was the leader of the merchant class who would intercede with the officials on their behalf. We also hear about hartals by merchants in order to express their point of view.
• Foreign trade also flourished during the seventeenth century, leading to an increase in the import of silver and gold into the country.
• Political integration and establishing law and order in the Empire helped expand trade and commerce during the seventeenth century.