Historians debate the country's economic situation, particularly trade and commerce, during this time period. Some see it as a period of stagnation and decline, a slowing of both foreign trade and long-distance trade within the country, the decline of towns, and increased localism and regionalism. The virtual absence of gold coins until the tenth century is thought to be proof of this. Recent studies, however, show that the impact of the Roman empire's collapse on India's foreign trade was not as severe as previously thought. Following the fall of the Roman Empire, two powerful empires arose: the Byzantine empire based in Constantinople, which included parts of Eastern Europe and West Asia, and the Sassanid empire based in Iran. Both of these countries had extensive trade relations with India. In this article, we will discuss Trade and Commerce (800-1200) which will be helpful for UPSC exam preparation.

Trade and Commerce - Background

• In Northern India there was decline in trade and commerce between 7th to 10th Century which led to decline of towns and town life in the religion.
• The set back to trade and commerce was due to collapse of Roman Empire in the west and the collapse of Iranian Empire countries contributing for the remarkable paucity of gold and silver coins in North India between the 7th to the 10th century
• The situation in north India gradually changed with the rise of a powerful and extensive empire of Arabs in West Asia and Africa.
• The Arabs being seafaring people came to western seaports in India and traded in Indian fabrics, spices and incenses and brought in gold which led to revival of trade and commerce in northern India gradually from the 10th century onwards, the chief beneficiaries of which were Gujarat and Malwa.
• The chief port for sailing to South East Asia was Tamralipti in Bengal. The Palas and the Senas in Bengal and the Pallavas and Cholas in the South actively promoted eastern trade.
• The chola emperor Rajendra I, sent a naval expedition against the Sailendra rulers of Sumatra to overcome their interferance in trade with China. He also sent an embassy to China.
• Thus, while India's trade with the western area declined, trade with Southeast Asia grew steadily till the 12th century which contributed to the material prosperity of Bengal and South India.
• Vastupal and Tejpal were ministers under the chalukya of Gujarat who were reputed to have been the richest merchants of their times.

Trade and Commerce - Features

The First Phase (700-900 AD)

Media of Exchange

• Between 750 and 1000 AD, India was controlled by a number of powerful kingdoms. The Gujara Prathiharas of Western India, the Palas of Eastern India, and the Rashtrakutas of the Decan are among them.
• All had the privilege of serving some of the most powerful kings of the time, many of whom reigned for long periods of time.
• It's incredible that their available coins are so scarce and don't even come close to matching the amount or quality of coins from previous centuries.
• Because money is so crucial in the sale and acquisition of products, the scarcity of actual coins and the lack of coin-moulds in archaeological finds led us to infer that trade shrank during the time period under investigation.

Relative Decline of Trade

• Internally, the spread of political power to local chiefs, religious grantees, and others appears to have had a negative impact, at least in the early decades of the land grant system.
• Many intermediary landlords, especially those in less productive areas, resorted to looting and robbery or levying exorbitant fees on goods passing through their lands.
• This had to have tempered the traders' and merchants' enthusiasm. The recurrent battles between potential governing leaders were also disheartening.
• It is pointed out that after the demise of the vast Roman Empire in the fourth century, foreign trade with the West suffered a significant downturn.
• It was also harmed when the inhabitants of Byzantine (Eastern Roman Empire) learned how to make silk in the middle of the sixth century.
• As a result, India lost an important market that had brought her a significant amount of gold in the early Christian era.
• The encroachment of Arabs on India's northwestern frontiers in the seventh and ninth centuries also contributed to the loss of foreign trade.
• Because of their presence in the region, Indian merchants were unable to travel overland.

The Second Phase (900-1300 AD)

Crafts and Industry

• Agricultural production was bolstered by an increase in craft production.
• The collapse of internal and external trade in the early medieval period resulted in a restriction of markets for manufactured goods. The output was mostly restricted to local and regional requirements.
• However, in the second phase, we see a trend toward increasing craft output, which has stimulated the process of both regional and inter-regional exchange.
• The textile industry, which had been around since antiquity, grew into an important economic sector. Cotton items, both coarse and fine, were now being made.
• The great quality of cotton garments from Bengal and Gujarat is praised by Marco Polo (1293 AD) and Arab literature.
• The availability of madder in Bengal and indigo in Gujarat may have aided the growth of the textile industry in these regions.
• Paithan, Negapatinam, Kalinga, and Multan are also mentioned as important textile centres in Manasollasa, a text from the twelfth century.
• The silk weavers of Karnataka and Tamil Nadu were likewise a powerful and influential segment of society.
• During this time, the oil sector grew in importance. From the ninth century onwards, there are numerous allusions to oilseed farming and ghanaka, or oil mills.
• An inscription from Karnataka mentions many sorts of oil capsules that are used by both men and bullocks.
• In this period, references to sugarcane fields and cane crushers also indicate large-scale manufacturing of jaggery and other sugars.
• Aside from the agro-based sector, metal and leather craftsmanship also acquired a high level of competence.
• Craftsmen working with various metals, such as copper, brass, iron, gold, silver, and so on, are mentioned in literary sources.

Coins and other media of Exchange

• During the centuries under consideration, the reemergence of metal money aided the recovery of trade significantly.
• However, there is considerable debate concerning the degree and scope of monetization.
• Frequently, proponents of money's market penetration cite literary and inscriptional references to a slew of words purporting to characterise distinct sorts of early medieval Indian coins.
• Most of the terminology seen in current literature are supported by the Paramara Chalukya, Chahmana, Pratihara, Pala, Chandella, and Chola inscriptions.
• There has also been a lot of discussion about the worth of these coins, their metal composition, and how they are related to one another.
• Nothing could be more simplistic than implying that money had penetrated the market only based on a list of numismatic gleanings from a jumble of inscriptions and writings.

Ban on Travel

• Some Dharamshastras written during this period prohibit travel beyond areas where munja grass does not grow or where the black gazelle does not roam, i.e., outside India proper.
• Traveling across the salt seas was also regarded as polluting. These bans were not taken seriously, as we have accounts of Indian merchants, philosophers, medical men, and craftsmen visiting Baghadad and other Muslim towns in West Asia during this time.
• Perhaps the ban was intended only for Brahmans, or it was intended to discourage too many Indians from travelling to areas dominated by Islam in the West and Buddhism in the East for fear of bringing back heretical religious ideas that would be embarrassing and unacceptable to the Brahmans and the ruling groups.
• The ban on sea travel had no impact on India's growth in overseas trade with Southeast Asian and Chinese countries.
• South India and Southeast Asian countries began a brisk trade in the sixth century.

Trade and Cultural Relations

• The literature of the time reflects the growing geographical knowledge of the area's countries. The peculiar features of the area's languages, dress, and so on are mentioned in period books such as Harisena's Brihatkatha-kosh.
• There are many stories about the adventures of Indian merchants in the area's magical waters, stories that became the basis for the well-known story of Sindbad the Sailor.
• The Indian merchants were organised into guilds, the most famous of which were the Manigraman and the Nandesi, which had been active since ancient times.
• These guilds exhibited a spirit of enterprise, engaging in retail and wholesale trade in a variety of foreign countries.
• They also gave large grants to temples, which became centres of social and cultural life, and sometimes advanced money for trade.
• Many Indian traders settled in these countries. Some of them married local women. The priests followed the traders.
• In this way, Buddhist and Hindu religious ideas were introduced into the area. The Buddhist temple of Borobudur in Java and the Hindu temple of Angkor Wat in Cambodia attest to the spread of both religions.
• Some of the area's ruling families were semi-Hinduized, and they welcomed trade and cultural relations with India. In this way, Indian culture merged with local culture to create new literary and cultural forms.
• Some observers believe that the introduction of the Indian technique of irrigated rice cultivation played a significant role in the material prosperity of Southeast Asian countries, the growth of civilization, and the establishment of large states.
• Tamralipti (Tamluk) in Bengal was the primary Indian port for sailing to Java, Sumatra, and other Indonesian islands. In most stories from the time, merchants departed from Tamralipti for Suvarnadvipa (modern Indonesia) or Kataha (Kedah in Malaya).
• A fourteenth-century writer in Java speaks of people arriving in large numbers in large ships from Jambudvipa (India), Karnataka (South India), and Gaud (Bengal). Gujarat traders also participated in this trade.

Trade in Indian Ocean

• Because of its prosperity, China had become a major trading hub in the Indian Ocean. The Chinese consumed enormous amounts of spices imported from Southeast Asia and India.
• They also imported ivory, the best of which came from Africa, and glassware from West Asia. To these were added medicinal herbs, lac, incense, and various rare commodities.
• In general, products from Africa and West Asia did not travel beyond Malabar in South India, nor did many Chinese ships venture beyond the Moluccas in Southeast Asia.
• As a result, both India and Southeast Asia served as important staging points for trade between China and the countries of West Asia and Africa.
• Indian traders, particularly from the Tamil country and Kalinga (modern Orissa and Bengal), participated actively in this trade, as did Persians and, later, Arabs.
• Much of the trade to China was carried in Indian ships, with teakwood from Malabar, Bengal, and Burma forming the foundation of a strong shipbuilding tradition.
• The weather conditions were also such that a ship could not sail straight from the Middle East to China.
• The ships would have to wait for a long time in between ports for favourable winds that blew from west to east before the monsoon and east to west after the monsoon. Merchants preferred Indian and Southeast Asian ports for the purpose.
• Canton, or Kanfu as Arab traders called it, was China's main seaport for foreign trade during this period. Buddhist scholars took the sea route from India to China.
• According to Chinese chroniclers, the number of Indian monks in the Chinese court near the end of the tenth century and the start of the eleventh century was the highest in Chinese history.
• According to a Chinese account from a slightly earlier period, the Canton River was teeming with ships from India, Persia, and Arabia. It is said that there were three Hindu temples in Canton where Indians lived.
• The presence of Indians in the Chinese Sea is attested to by Japanese records, which attribute the introduction of cotton into Japan by two Indians who were carried over by the black current.

Encouragement of Indian Rulers

• Indian rulers, particularly the Pala and Sena rulers of Bengal and the Pallava and Chola rulers of south India, attempted to encourage this trade by sending a series of embassies to the Chinese emperors.
• Rajendra I, the Chola ruler, dispatched a naval expedition against Malaya and the neighbouring countries in order to counteract their interference in trade with China.
• Rajendra I sent an embassy to China on an Indian ship. There is evidence that many shipyards were located on the west coast, including Gujarat.
• Thus, the expansion of India's foreign trade in the region was based on a strong maritime tradition, including ship building, as well as the skill and enterprise of its traders.
• The Chinese trade was so beneficial to the countries involved that the Chinese government attempted to limit the export of gold and silver from China in the thirteenth century.
• Indian ships gradually gave way to larger and faster Arab and Chinese ships. According to reports, the Chinese ships were several storeys tall and carried 600 passengers in addition to 400 soldiers.
• The use of the mariner's compass—an invention that later spread from China to the West—was an important factor in the growth of Chinese ships.

Conclusion

As a result of the various factors, India's trade with the West, Southeast Asia, and China increased steadily. South India, Bengal, and Gujarat took the lead in this trade which was also a significant factor towards the wealth and prosperity of these areas.

FAQs

MCQs

1. What was the primary role of guilds (shrenis) in medieval India?

A) Providing military defense
B) Regulating trade and commerce
C) Collecting taxes
D) Building religious temples

2. Which Indian dynasty was instrumental in expanding maritime trade during 800-1200 CE?

A) Gupta Dynasty
B) Maurya Dynasty
C) Chola Dynasty
D) Mughal Dynasty

3. Which of the following cities was a major urban center for trade in medieval India?

A) Pataliputra
B) Kanchipuram
C) Varanasi
D) Delhi

4. Which commodity was a major export from India during the medieval period?

A) Horses
B) Silk
C) Spices
D) Pottery

5. What was the primary import from Central Asia during 800-1200 CE?

A) Cotton
B) Gold
C) Silk
D) Horses

GS Mains Questions and Model Answers

Q1: Discuss the role of maritime trade in the expansion of Indian commerce during the period 800-1200 CE.

Answer: Maritime trade played a crucial role in expanding Indian commerce during 800-1200 CE. Indian merchants established robust trade networks with regions like Southeast Asia, Arabia, and East Africa. The Chola dynasty was instrumental in securing sea routes and enhancing India’s naval power, allowing for increased trade of spices, textiles, ivory, and other valuable goods. These commercial activities led to greater wealth accumulation and the spread of Indian cultural and religious influence abroad. The growth of ports and urban centers along the coasts further stimulated economic development and reinforced India's position as a hub of international trade.

Q2: Analyze the role of guilds (shrenis) in regulating trade and commerce in medieval India.

Answer: Guilds, or shrenis, played a central role in regulating trade and commerce in medieval India between 800 and 1200 CE. These organizations controlled the production and distribution of goods, set quality standards, and ensured fair prices for products. They also protected the interests of their members—merchants, artisans, and craftsmen—by providing legal protection, securing transportation, and resolving disputes. Guilds contributed to the stability of the economy by organizing trade networks and facilitating the smooth flow of goods within and beyond India’s borders. Their influence was felt in urban centers and ports, where they played a key role in commercial activities.

Q3: Evaluate the impact of urbanization on trade and commerce during 800-1200 CE in medieval India.

Answer: The period from 800 to 1200 CE witnessed the growth of several urban centers such as Kanchipuram, Thanjavur, and Kannauj, which played pivotal roles in enhancing trade and commerce. These cities became hubs for artisans, merchants, and traders, leading to increased production and distribution of goods. The rise of cities facilitated the creation of marketplaces where local and international traders could exchange goods such as spices, textiles, and metals. Urbanization also provided the infrastructure necessary for storage and transportation, thereby streamlining the trade networks that connected India with other parts of Asia, Europe, and Africa.

Previous Year Questions on Trade and Commerce

1. UPSC CSE Mains 2016 (GS Paper 1)

Question: Discuss the role of trade guilds in the economic life of medieval India.

Answer: Trade guilds, or shrenis, were a cornerstone of medieval India’s economy, particularly between 800 and 1200 CE. These guilds controlled the production, distribution, and sale of goods in various regions. They regulated prices, maintained quality standards, and ensured fair trade practices. Additionally, they provided legal and financial support to their members, helping merchants navigate the challenges of long-distance trade. Guilds also facilitated trade agreements with foreign merchants, boosting India’s external commerce. By organizing trade activities and safeguarding merchant interests, guilds played a vital role in ensuring economic stability during this period.

2. UPSC CSE Mains 2018 (GS Paper 1)

Question: Analyze the significance of maritime trade routes in medieval India’s economic prosperity.

Answer: Maritime trade routes were vital for medieval India’s economic prosperity during the period from 800 to 1200 CE. These routes facilitated the export of spices, textiles, ivory, and precious stones to regions such as Southeast Asia, Arabia, and East Africa, while importing horses, gold, silver, and silk. The Chola dynasty played a key role in securing these routes, establishing Indian dominance in the Indian Ocean trade network. Maritime trade boosted economic growth in coastal cities like Kanchipuram and Thanjavur, transforming them into vibrant urban centers. The trade routes also encouraged cultural exchanges, including the spread of Indian religious and artistic influences, contributing to the overall prosperity of the region.