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Introduction

Key Points on Trade and Commerce (700-1300 A.D.):

  • Trade and commerce during this period were marked by feudalisation, indicating a shift towards a feudal system.
  • Trade can be understood through two phases:
  • Phase 1 (700-900 A.D.): Characterized by a decline in trade, limited use of metallic currency, weakening urban centers, and a more isolated village economy.
  • Phase 2 (900-1300 A.D.): Trade revived both internally and externally, with an increase in the use of metal coins, though the monetary economy was still not as dominant as in the period following the Mauryan Empire.
  • Indicators of feudalisation included:
  • Money transactions and their nature.
  • Manipulations of land interests by state officials and ruling chiefs.
  • Ruling elite serving the interests of large traders and merchants.
  • Restrictions on artisans and craftsmen.

Trade and Commerce in Early Medieval India (700-1300 A.D.):

Trade and Commerce in Early Medieval India | History Optional for UPSC (Notes)

Feudalisation: The period was marked by the process of feudalisation, indicating a shift in the socio-economic structure.

Trade Phases:

  • 700-900 A.D.: This phase saw a relative decline in trade, characterized by the use of metallic currency, weakening urban centers, and a somewhat closed village economy.
  • 900-1300 A.D.: Trade picked up momentum both within and outside the country, with an increase in the number of metal coins in use. However, the monetary economy was not as deeply penetrated as in the five centuries following the Mauryan period.

Indicators of Feudalisation:

  • The nature of money transactions.
  • The manipulations of landed interests by state officials and ruling chiefs.
  • The functioning of the ruling elite in the interests of big traders and merchants.
  • Restrictions imposed on artisans and craftsmen.

Overall, trade and commerce during this period were shaped by the evolving feudal structures, changes in monetary practices, and the varying dynamics of rural and urban economies.

The First Phase (c.A.D. 700-900)

Expansion of Land Grants (A.D. 750-1000):

  • During this period, land was widely granted not only to priests and temples but also to warrior chiefs and state officials.
  • A hierarchy of landlords emerged, including various grades of state officials such as maha-mandaleshvara,mandalika,samanta,mahasamanta, and thakkura.
  • These officials relied on the surplus extracted from peasants, leaving the latter with little to trade.

Impact on Rural Economy:

  • The concentration of surplus in the hands of landlords led to the growth of a rural economy where local needs were met locally.
  • There were numerous restrictions on the mobility of actual producers, further entrenching this local economy.
  • The scarcity of medium of exchange, particularly metal coins, reinforced this trend.

Media of Exchange: 

Evidence of Declining Trade in Post-Gupta Period:

  • The lack of actual coins and the absence of coin-moulds in archaeological finds suggest a decline in trade during the period under study.

Contributions of D.D. Kosambi and R.S. Sharma:

  • D.D. Kosambi initially suggested the idea of limited coinage in post-Gupta times.
  • R.S. Sharma, in 1965, emphasized the scarcity of coinage in post-Gupta times and its connection to trade, commerce, and the rise of feudal social structures.

Responses to the Scarcity of Coinage Debate:

  • Orissa Case Study: Examines the complete absence of coins between c.A.D. 600 and 1200 but argues for trade with Southeast Asia. Emphasizes the role of barter in foreign trade.
  • Kashmir Case Study: Shows the emergence of copper coinage around the eighth century A.D. The poor quality of this coinage is attributed to the decline of a trade-based economy and the rise of agricultural activities.
  • Mid-Eastern India Perspective: Challenges the idea of coin scarcity and trade decline based on evidence from Bihar, West Bengal, and present-day Bangladesh between A.D. 750-1200. While acknowledging the absence of coined money and the Palas and Senas not striking coins, it argues that there was no shortage of media of exchange.
  • Evidence of Harikela silver coinage, cowries, and churni(money in the form of gold/silver dust) as media of exchange.

But even in these areas: 

Participation of Indigenous People in Maritime Trade:

  • The sources do not provide information on whether indigenous people were involved in the maritime trade of the area.
  • Even the limited trading activities that existed were restricted to the ruling elite.
  • The plight of the common people is evident in the meaning of the word "vangali," which referred to someone who was "very poor and miserable."
  • While there may have been some regional exceptions, the overall situation aligns with Professor R.S. Sharma's general hypothesis.

Similar was the case with south-east Asia

Detailed Study of Cambodia and the Role of Coinage and Barter in the Khmer Empire Economy:

  • During the post-Gupta period (A.D. 600-800), Southeast Asia, including Cambodia, did not develop a system of coinage.
  • The Khmer Empire relied on barter, primarily based on paddy (rice) and marginally on cloth, for its economy.
  • Even when early medieval coin types like the Indo-Sassanian, Shri Vigraha, Shri Adivaraha, Bull and Horseman, and Gadhaiya emerged in Western and Northwestern India, they had a minimal impact on the overall economy.
  • The coins were of poor quality and had low purchasing power, indicating their diminished role in the economy.
  • Despite the rising population and expanding settlements, the volume of money circulation was negligible during this period.
  • This decline in metallic money circulation during the first phase had a significant impact on India’s trading activities.

Relative Decline of Trade

Fragmentation of Political Authority:

  • Dispersal of power to local chiefs and religious grantees had an adverse effect in the initial centuries of the land grant economy.

Decline in Enthusiasm of Traders and Merchants:

  • Many intermediary landlords, especially in less productive areas, resorted to loot and plunder or imposed excessive taxes on goods passing through their territories.
  • Frequent wars among potential ruling chiefs contributed to the decline.

Jain Texts and Trade:

  • Two Jain texts from the eighth century,Samaraicchakaha and Kuvalayamala, mention brisk trade and busy towns.
  • However, these texts are believed to draw heavily from earlier sources and may not accurately reflect the true economic condition of the eighth century.

Why foreign trade declined

India's Loss of Western Markets and Impact on Trade

  • In the early centuries of the Christian era, India had a lucrative trade relationship with the West that brought in significant amounts of gold.
  • In the 4th century, the fall of the Roman Empire impacted this trade.
  • By the mid-6th century, the Byzantine Empire (Eastern Roman Empire) had learned the art of making silk, further affecting India's trade.
  • In the 7th and 8th centuries, the Arab expansion on India's north-west frontiers disrupted trade:
    • Arab raiders captured Indian merchants and disrupted trade routes.
    • Ports like Broach and Thana were attacked, and Valabhi, an important port on the Saurashtra coast, was destroyed.
  • Although the Arabs later contributed to the growth of Indian maritime trade after the 10th century, their initial raids severely disrupted Indian commercial activities.
  • Conflicts between the Tibetans and Chinese during this period also affected the flow of goods along central Asian trade routes.
  • While there are references in literature to India's contact with Southeast Asia during this time, it is uncertain whether this could compensate for the loss of trade with the West.

Urban Settlements: Decay 

The first phase of decline and desertion of many towns is a significant indicator of commercial downturn, as towns were primarily inhabited by individuals engaged in crafts and commerce.

  • Trade waned and the demand for craft goods diminished, leading traders and craftsmen to migrate to rural areas for alternative livelihoods.
  • This migration resulted in the decay of towns and the integration of townsfolk into the village economy.
  • The accounts of Hiuen Tsang and Pauranic records indicate depopulation of major cities during the Kali age.
  • This trend of decline was noted by Varahamihira in the 5th century.
  • The decline of significant towns such as Vaishali, Pataliputra, and Varanasi is evident from archaeological excavations.
  • Excavations reveal a poverty of structures and antiquities.
  • Between the 3rd and 8th centuries, urban centers faced desertion or decay.
  • Settlements like Ropar in Punjab and Bhita in Uttar Pradesh were eventually abandoned.
  • The medieval prominence of Kanauj is still awaiting confirmation through archaeological evidence.
  • Despite the decline, commercial activity continued, particularly in trade of luxury goods for elites.
  • Items like precious stones, ivory, and horses were significant in long-distance trade.
  • However, evidence for transactions involving everyday goods is scarce from this period.
  • Notable items in inscriptions include salt and oil, which had to be imported.
  • If the economy had been self-sufficient, there would be more references to trade in grains, sugar, textiles, and handicrafts.
  • The nature of commercial activity during A.D. 750-1000 primarily catered to landed intermediaries and feudal lords.
  • Some trading hubs like Pehoa in Haryana and Ahar in Uttar Pradesh existed, where merchants convened.
  • However, these hubs could not significantly impact the predominantly closed economy of the country.

Question for Trade and Commerce in Early Medieval India
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The Second Phase (c.A.D.900 – 1300)

Revival of Trade and Commerce (9th-13th Century):

  • This period saw a revival in trade and commerce, marked by agrarian expansion, increased use of money, and the reemergence of a market economy where goods were produced for exchange rather than local consumption.
  • There was significant growth in urban settlements across different regions of the subcontinent.
  • Although regional variations existed, there was a notable increase in the production of cereals, pulses, and commercial crops, creating a favorable climate for internal and external trade.

Crafts and Industry:

  • Growth in agricultural production was accompanied by an increase in craft production, which stimulated both regional and inter-regional exchange.
  • The textile industry, well-established since ancient times, became a major economic activity. Both coarse and fine cotton goods were produced, with regions like Bengal and Gujarat gaining recognition for their high-quality fabrics.
  • Marco Polo and Arab writers praised the quality of cotton fabrics from Bengal and Gujarat, while texts like Manasollasa highlighted important textile centers.
  • The oil industry also gained prominence, with increased references to oilseed cultivation and oil mills from the tenth century onward.
  • Large-scale production of jaggery and other sugar forms was evident from references to sugarcane cultivation and cane crushers.
  • Metal and leather craftsmanship reached high levels of excellence, with references to craftsmen working with various metals like copper, brass, iron, gold, and silver.
  • Iron was used for making high-quality arms and weapons, with regions like Magadha, Benaras, Kalinga, and Saurashtra known for their swords.
  • Gujarat was renowned for its leather industry, producing embroidered leather mats in great demand.
  • Coins and other media of exchange saw a resurgence, with literary and inscriptional references to various coins.
  • Metal money reemerged, with references to different types of coins and their multiples in texts and inscriptions.
  • Despite the abundance of references to coins, the overall volume of money in circulation was limited, and coins were often debased and reduced in weight.
  • Barter remained an important means of exchange, and credit instruments like hundika (bills of exchange) were developed to facilitate commerce in the absence of cash money.
  • Texts from the period indicate various means of raising loans for consumption and commercial ventures, reflecting the economic practices of the time.

Apects of Trade 

  • The increased agricultural production and the momentum picked by industrial and craft production were responsible for giving rise to a hierarchy of exchange centres. 
  • Inter-regional and intra-regional exchange networks were creating cracks in the relatively closed village economy of the first phase (c. A.D. 750-900).

Inland Trade

Commodities of Trade:

  • Merchants transported various goods such as food grains,oil,butter,salt,coconuts,arecanuts,betel leaves,madder,indigo,candid sugar,jaggery,thread,cotton fabrics,blankets,metals, and spices from one place to another, paying taxes and tolls on them.
  • Rice,wheat,barley,pulses,linseed fiber,cotton cloth,palm sugar,indigo, and coir for ropes were also significant trade items.

Consumers of Indian Goods:

  • The primary consumers of Indian goods were the wealthy inhabitants of China,Arabia, and Egypt.
  • Many Indian products likely reached Europe through the Mediterranean.
  • Domestically, consumers included the new landowning class, ruling chiefs, the rising mercantile class, and both Brahmanical and non-Brahmanical religious establishments. There was an increasing need for food to be offered to gods or distributed as prasadam.

Trade Routes:

  • A vast network of roads connected various ports,markets, and towns, facilitating trade and commerce.
  • Hiuen Tsang, a Chinese pilgrim, documented overland connections across India in the seventh century, visiting towns from Kashmir in the North to Kanchi in the South, and from Assam in the East to Sindh in the West.
  • Bilhana, an eleventh-century poet from Kashmir, also wrote about his travels across various parts of India.
  • Albiruni in A.D. 1030 mentioned fifteen trade routes originating from places like Kannauj,Mathura, and Bayana.
  • One significant route started from Kannauj, passing through Prayaga, and leading to the port of Tamralipti(modern Tamluk in West Bengal), then along the Eastern coast to Kanchi. This route also connected to Assam,Nepal, and Tibet, facilitating trade with China.
  • Another route from Bayana in Rajasthan passed through the Marwar desert to the modern port of Karachi in Sindh, with branches connecting ports and towns in Gujarat and northern India.
  • Routes from Mathura and Prayaga to the port of Broach on the Western coast via Ujjain played a crucial role in linking interior India to international sea trade.
  • Rivers in Northern India and sea routes along the Eastern and Western coasts of Southern India were also vital for inter-regional contact.

Means of Communication:

  • In the plains,bullock-carts were the primary mode of conveyance, but where they could not be used,human carriers were employed to transport goods.
  • Different types of boats were used for river traffic, while large ships operated on the high seas.
  • After the tenth century,rulers showed increased interest in maintaining the safety of highways, punishing thieves and robbers, and providing military and financial support to villagers to protect traders and travelers.
  • In Gujarat, the Chalukya kings established a department called Jiala-patha-karana to oversee highways, built new roads connecting important ports and markets, and excavated tanks and wells for travelers' benefit.
  • As trade became a significant source of revenue,political authorities focused on ensuring the safety and well-being of traders and merchants.
  • Marco Polo noted Cambay as a pirate-free area, indicating that Indian kings took measures to protect ports from piracy, a major threat along the sea route from South China to the Persian Gulf.

Maritime Trade:

  • Large-scale trading activities were conducted via sea.
  • The period saw significant expansion of sea trade between the Persian Gulf and South China, with India benefiting from its strategic location.
  • Asian trade was primarily dominated by the Arabs, who became the chief maritime force in the Arabian Ocean after destroying the important port of Valabhi in the eighth century.
  • In the 12th century,China emerged as a significant participant in this trade, but the Arabs maintained their dominance.
  • Despite Arab competition, Indians began participating in maritime trade from the 10th century. Arab authors like Abu Zaid mentioned Indian merchants in the Persian Gulf, and travelers like Ibn Battuta noted Indian merchant colonies in places like Aden.
  • The Colas in South India were particularly active in maritime trade, establishing commercial ties with regions like Malaya and Sumatra, and sending embassies to China to enhance trade relations.
  • Despite limited physical participation, Indian products were in high demand globally, often reaching international markets through Arab and Chinese intermediaries.

Commodities Exchanged

Import from East:

  • Chinese texts indicate that the Malabar coast received silk, porcelain-ware, camphor, cloves, wax, sandalwood, cardamom, etc. from China and South-east Asia. Some were meant for India (Most of these was the items of reexport to the Arabian world) particularly the silk which was always in great demand in local markets.
  • Marco Polo informs us that the ships coming from the East to the ports of Cambay in Gujarat brought, among other things,gold, silver and copper.
  • Tin was another metal which came to India from South-east Asia.

Export to East:

  • Aromatics and spices(particularly pepper). Marco Polo pepper was consumed at the rate of 10.000 pounds daily in the city of Kirisay (Hang-Chau) alone.
  • Cotton cloth to China: A Chinese port official (Chau Ju Kua) account says that.
  • Ibn Battuta(A.D. 1333) that fine cotton fabrics were rarer and more highly priced than silk in the cities of China.
  • India also exported ivory, rhinoceros horns, and some precious and semiprecious stones to China.

Evidence of trade in west (i.e Arabs):

  • Arabic inscriptions found at Cambay,Samaratha and Junagadh reveal that merchants and shippers from the Persian Gulf visited Western India in the twelfth and thirteenth centuries.
  • Lekhapaddhati mentions the ships coming to the Gujarat coast from Hormuz in the Persian Gulf.

Export to West:

  • Jewish merchants carried many goods from the West coast of India to the Egyptian markets. e.g:spices,aromatics,dyes,medicinal herbs,bronze and brass vessels,textiles,pearls,beads,coconuts, etc.
  • India also exported teakwood which was required for shipbuilding and house construction in the almost treeless areas of Persian Gulf and South Arabia.
  • Some surplus food-grains, mainly rice were also exported.
  • Marco Polo: The fine and embroidered leather mats of Gujarat were highly priced in the Arab world.
  • Iron and steel products, particularly the swords and spears enjoyed a wide market in Western countries.

Imports from the West:

  • The most significant item was the horse. As the number of feudal lords and chiefs increased in the early medieval period, the demand for’ horses also increased manifold.
  • Horses were brought both by land and sea.
  • Ibn Battuta tells us that horse-dealers coming through the North-western land routes earned large profits.
  • Wassaf(A.D. 1328, an Arab author) more than 10.000 horses were brought annually to the Coromandel coast, Cambay and other ports of India in the thirteenth century.
  • Horses were brought from such places as Bahrein,Muscat,Aden,Persia, etc.
  • Dates,ivory,coral,emeralds, etc. were also brought to India from the West.

Ports:

  • Debal port(on the mouth of the Indus): was visited by vessels from Arabia as well as from China and other Indian ports.
  • On the Gujarat coast were Somanatha,Broach and Cambay.
  • Somanatha had links with China in the East and Zanzibar(in Africa) in the West.
  • Broach(or ancient Bhrigukachha) has had a very long history.
  • Cambay(Khambayat in Arabic sources, and Stambhatirtha in Sanskrit sources): Its earliest reference goes back to the ninth century A.D.
  • Sopara and Thana were other important ports.

On the Malabar coast:

  • Quilon had emerged as the most important port. The Arab Writers and Chinese sources mentions importance of Quilon port.

Eastern port:

  • During the three centuries between the tenth and thirteenth, the Coromandel coast developed into a virtual clearing house for the ships coming from the East and West.
  • Wassaf: tells us that the wealth of the isles of the Persian Gulf and the beauty of other countries as far as Europe is derived from the Coromandel coast.
  • The most important port in this region was Nagapattinam.

On the Orissa coast:Puri and Kalingapattam were important ports.

In Bengal the fortunes of Tamralipti were reviving though according to some scholars, it was being superceded by another port of Saptagrama.

Safety and Security of Merchants:

  • In view of the heavy returns, the contemporary political authorities showed keen interest in facilities provided to merchants emgaged in foreign trade.
  • The Chalukyas of Gujarat (10th-13th centuries) set up a separate department of harbours (Velakulakarana) under royal control.
  • They also granted religious and economic freedom to the muslim merchants in their state.
  • The Cola Kings also managed their ports through royal officials who, with the help of local merchant organisations, looked after the foreign merchants and collected the port-cesses.
  • The Arab writers unaninously praise the Rashtrakuta kings for their policy of peace and toleration towards the Arabs.
  • Ibn Battuta tells us that whenever a foreign merchant died, his property was not confiscated but kept in safe custody to be handed over to the next of kin.
  • An inscription of A.D. 1244 found at Motupalli in the Guntur district of Andhra Pradesh reveals that the King guaranted protection to the storm strayed ships and promised to collect duty as per the law of land in order to win over the confidence of foreign merchants.
  • Revival of Towns:
  • The second phase of early medieval India (c.900-1300 A.D.) was a departure from the preceding two centuries in so far as it is marked by a very distinctive revival of urban centres.
  • This revival became an almost all India phenomenon. It is often described as the “third urbanisation” of the lndian sub-continent.

Trading communities and organisations 

Role of Traders and Merchants in Ancient India:

  • Traders serve as a crucial link between producers and consumers.
  • They collect agricultural surplus and products from artisans and craftsmen, distributing them over a wide area.
  • The position of traders and merchants in society is linked to two phases of commercial activity:
  • First Phase (700-900): Traders faced challenges due to limited commercial exchange.
  • Second Phase (900-1300): The revival of trade significantly improved the status and power of merchant communities.
  • Ancient Indian texts recognize trade, along with agriculture and cattle rearing, as lawful means of livelihood for Vaishyas.
  • In the seventh century, the Chinese traveler Hiuen Tsang noted Vaishyas as traders and Shudras as cultivators.
  • The barriers of the Brahmanical varna order weakened post-Gupta, leading to a more fluid social structure where people adopted professions across varna divisions.

Position of Merchants during the First Phase (c. A.D. 700-900):

  • The decline of trade during this period significantly eroded the role of merchants in society.
  • With the slump in trade and the disappearance of markets, merchants had to seek patronage from temples and emerging landed magnates.
  • This shift robbed merchants of their independent commercial activities, forcing them to cater to the needs of their patrons.
  • Inscriptions from Orissa and Central India indicate that traders, artisans, and merchants were among those transferred to donees.
  • There is a lack of evidence for significant administrative roles being assigned to merchants during this period, contrasting with their roles in administration during the Gupta period.
  • Some merchants, particularly along the coast, remained active but were few in number, focusing mainly on luxury items for kings,chiefs, and temples.
  • In South India, trade was not a prominent activity, as evidenced by the absence of merchants as a distinct class in contemporary records.
  • The first phase of the early medieval period is characterized by the decline of the prosperous and independent merchant class.

Position of Merchants during the Second Phase (c. A.D. 900-1300):

  • The mercantile community regained prominence, with a large number of merchants actively involved in the trade of luxury and essential goods.
  • Many merchants participated in various levels of administration and held ministerial positions in royal courts.
  • Merchants gained social recognition by making significant gifts to temples and priests.
  • Literature and inscriptions from this period mention numerous merchants known by their specialized trades.
  • Moneylending became a major activity for merchants, with the emergence of specialized groups such as Nikshepa-vanika in western India.
  • Regional merchant groups, particularly from Western India, gained prominence due to the region's extensive network of land routes connecting coastal ports with northern India.
  • Merchants from places like Osia, Patlli, Shrimala, and Modhera collectively became known as Marwaris.
  • Terms like shreshthi and sarthavaha were commonly used to refer to these merchants.
  • Shreshthi: A rich wholesale dealer who also acted as a banker by lending goods or money to small merchants.
  • Sarthavaha: A caravan leader guiding merchants on distant trade journeys, possessing knowledge of routes, languages, and regional exchange rules.
  • In South India, the expansion of agriculture and surplus production from the 8th/9th century onwards led to increased commercial exchanges.
  • South Indian merchants specialized in specific commodities like textiles, oil, ghee, betel leaves, and horses.
  • Regional markets called nagaram became centers of exchange, with their numbers increasing significantly during the Cola period.

Social Role of Traders:

  • With the growth of trade bringing economic prosperity, merchants sought social prestige by contributing to the maintenance of temples,priests, and religious functions.
  • Numerous inscriptions document merchants' grants of cash or goods for these purposes.
  • Some merchants became influential and joined the ranks of state officials and ministers.
  • For instance, a tenth-century inscription mentions a merchant of Modha caste who became the chief of Sanjan (near Thane) in Maharashtra.
  • In Gujarat, the merchant family of Vimala played a significant role in the region's political and cultural life, with descendants like Vastupala and Tajapala holding important ministerial positions and building famous marble temples dedicated to Jaina gods at Mount Abu.
  • A thirteenth-century inscription from central Gujarat reveals that many important merchants, traders, and artisans were part of local administrative bodies.

Character and Conduct of Traders:

  • Foreign authors and travelers like Al-Idrisi(twelfth century) and Marco Polo(thirteenth century) praised Indian traders for their truthfulness and honesty in business dealings.
  • However, contemporary Indian literature presents instances of greedy and dishonest merchants.
  • For example, the Kashmiri author Kshemendra describes a selfish merchant who profited from famines by hoarding foodgrains.
  • Eleventh-century texts from Western India classify merchants into high and low based on their position and character, with rich merchants engaged in large-scale trade enjoying great reputation, while small merchants and artisans who cheated people were looked down upon.

Organisation of traders

Merchants and Guilds:

  • Merchants gained power and prestige not just from wealth but also from guilds formed to protect their interests.
  • In the initial phase, the decline of trade weakened merchant corporate activity, reducing guilds to regional or occupational subcastes.
  • However, as trade revived, merchant guilds re-emerged as significant in the economic landscape.

Guilds: Definition and Functions:

  • Guilds were voluntary associations of merchants dealing in the same type of commodity, such as grains, textiles, betel leaves, horses, perfumes, etc. They were formed by both local (more permanent) and itinerant (temporary for specific journeys) merchants.

Functions:

  • Guilds established their own rules regarding membership and conduct.
  • They set prices for goods and could mandate specific days for sales.
  • They could refuse to trade in certain areas if local authorities were uncooperative.
  • Guild merchants acted as custodians of religious interests, often agreeing to pay additional taxes for temple maintenance.
  • Each guild was led by a chief elected by members, who acted like a magistrate, resolving economic disputes and representing the guild to the King.
  • Guild members followed a strict code of discipline but enjoyed protections and credibility in the market.
  • Despite guild chiefs sometimes being authoritative, merchants valued guilds for the physical and economic protection they offered.
  • Various terms like naigama, shreni, samuha, sartha, samgha were used to describe the corporate body of merchants.
  • Naigama referred to an association of caravan merchants from different castes trading with other countries.
  • Shreni was seen as a group of people in the same profession, though interpretations varied.
  • Kings in western India established a department Shreni-karana to oversee guild activities.
  • Some merchant guilds maintained their own troops shrenibala for safety.
  • Inscriptions also mention merchant corporate activities, with references like vanika-mandala indicating local merchant guilds.

Organisation of Trading Guilds in South India: 

Merchant Guilds in South India:

  • Expansion of agriculture and trade in the tenth century led to the rise of merchant guilds in South India.
  • These guilds, referred to as samaya, were formed through agreements among members to follow specific rules.
  • The two main merchant guilds were the Ayyavole and Manigraman, operating in present-day Maharashtra, Karnataka, Tamil Nadu, and South Andhra Pradesh.
  • The Chola kings promoted trade through various initiatives, and trade guilds played a role in exporting Indian culture.
  • The Ayyavole guild, known as the 500 Swami of Aihole or nanadeshi, acted as a trade link between communities in Tamil Nadu, Karnataka, and Andhra Pradesh.
  • They operated in Southern India and Southeast Asia, gaining power under the Cholas.
  • The Ayyavole guild expanded and incorporated local trade guilds, becoming a maritime power with Chola support.
  • The guild was active in places like Sri Vijaya, Burma, and the Thai peninsula.
  • The Ayyavole guild formed a federation and evolved from an itinerant group to a community due to trade growth.
  • The term nanadeshi refers to the guild's diverse membership.
  • The guild's influence extended beyond South India, as seen in inscriptions found in Burma, Java, Sumatra, and Sri Lanka.
  • Some members became powerful, holding the title samaya chakravarti, indicating control over guilds.
  • The Manigraman guild, initially along the Kerala coast, expanded its activities and engaged in long-distance sea trade.
  • Another group, Anjuvannam, also emerged along the Kerala coast and interacted with local merchants and guilds.
  • Trading guilds became important, with guilds tracing exalted lineages, such as the Vira Bananjas of the Ayyavole.
  • These guilds controlled a vast trading network, cooperating harmoniously with each other and linking closely with royal houses.

Relationship between merchants and craftsmen: 

  • The precise nature of the relationship between artisans and merchants in the early medieval period is not clearly documented in contemporary sources. It's unclear whether craftsmen like weavers and metalworkers operated independently or under the direction of merchants who provided them with money, raw materials, or both.
  • There is some evidence suggesting that as merchants gained more control over the mobilization of raw materials and finished products, their influence over artisans' activities increased significantly.
  • Historical figures like Albiruni and Lakshmidhara, a 12th-century jurist, indicate that artisans lived among merchants. This proximity suggests that merchants supplied the capital and raw materials, while artisans produced goods according to the merchants' demands and specifications.
  • An 11th-century inscription from Erode in Tamil Nadu highlights the dependence of craftsmen on merchant organizations, as it refers to an asylum provided by merchants for craftsmen.
  • As trade and commerce advanced, merchants tended to monopolize the commercial network of buying and selling, limiting artisans' ability to market their goods independently.
  • There are instances of some oilmen and weavers who managed to sell their goods independently and became wealthy enough to make endowments to temples and priests.
  • Generally, artisans and craftsmen during the early medieval period were economically reliant on large merchants.
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FAQs on Trade and Commerce in Early Medieval India - History Optional for UPSC (Notes)

1. What were the key features of trade during the First Phase (c.A.D. 700-900) in Early Medieval India?
Ans. The First Phase of trade in Early Medieval India was characterized by the emergence of regional trade networks, the establishment of trade routes connecting different parts of the subcontinent, and the involvement of various communities in trading activities. Key commodities included textiles, spices, and metalwork. Additionally, the use of coins began to facilitate transactions, and the rise of local markets played a significant role in trade dynamics.
2. How did trade evolve during the Second Phase (c.A.D. 900-1300) in Early Medieval India?
Ans. During the Second Phase, trade expanded significantly due to increased political stability and the growth of urban centers. Maritime trade flourished, with Indian merchants engaging in commerce with Southeast Asia and the Middle East. The establishment of guilds and trading communities became prominent, which helped in organizing trade and protecting the interests of merchants. This phase also saw the introduction of new goods and cultural exchanges.
3. What role did trading communities and organizations play in Early Medieval India?
Ans. Trading communities and organizations, such as guilds, played a crucial role in the economic landscape of Early Medieval India. They facilitated the organization of trade, established rules and regulations, and provided support to their members. These communities were instrumental in fostering trust among traders, ensuring quality standards, and resolving disputes, which contributed to the overall growth of commerce.
4. What impact did trade and commerce have on the social structures of Early Medieval India?
Ans. Trade and commerce significantly influenced the social structures of Early Medieval India by promoting urbanization and the growth of a merchant class. As trade flourished, cities became centers of economic activity, leading to the rise of a wealthy merchant elite. This shift contributed to changes in social hierarchies, with merchants gaining influence and status, thereby affecting traditional power dynamics within society.
5. What were the major commodities traded in Early Medieval India, and how did they influence local economies?
Ans. Major commodities traded in Early Medieval India included textiles, spices, precious metals, and agricultural products. The trade of these goods not only boosted local economies by increasing wealth and creating jobs but also facilitated cultural exchanges and the spread of ideas. The demand for Indian textiles and spices in global markets particularly enhanced India's economic stature and interconnectedness with other regions.
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