Revision Notes on History: Trade and Commerce in Ancient India

Metallurgy is as old as pre-historic times. Mining of metals was known even in pre-Vedic
period and during the Harappa period various metals like copper, lead, silver were in use.

During Vedic period, metal (ayas) was chiefly of two kindskrishna ayas (black metal or
iron) used during later Vedic period and loh ayas (copper).

The Jatakas refer to eighteen important handicrafts and industries.

The Vaishyas developed institutions like Sreni, Nigama and Puga to regu-late trade and avoid
intrusion by other varnas and develop monopoly.

Proper rules of conduct of trade were laid by the head of trade guilds, known as Sarthavaha or
Srenipramukha. The rules were called Samay and Srenidharma.

Taxila, Pushkalavati, Kapisa and Vidisha prospered as trade centres, under the Indo-Greek
rulers.

Kautilya asked the king to develop measures to stop obstruction of the trade routes by his
favourite men (vallabhas). Frontier guards (Antapalas) were also appointed.

The close contacts between the commercial classes and the kings court is very clear from the
rules of the settlement layout of the historic city of Patliputra. Here, people lived in various
parts, according to their social status.

Kautilya looked upon artisans and traders as big thieves and held them under suspect. He
demanded strict control over them, as also with the often in-disciplined frontier guards
(antapalas).

Guilds of merchants were properly registered and even served as banks.

During Mauryas, most important trade route was from Taxila to Patliputra.

Ships in ancient period were usually of the two-masted type. In the 2nd century A.D., a
regular sea-route was in operation for the quest for gold (swarna).

Monsoons (Arabic: Mausam) were discovered by Hippalus (Greek captain) and this
discovery in 45 A.D. that mon-soons could sail ships from Alexandria to Western India in
just a 40-days period, tremendously increased the Roman sea-trade, due to shortening of
trade-route.

Muziris (Cranganore, Kerala) and Puhar (in Cholamandalam) were major sea-ports and
foreign settlements.

Among land-routes, the silk-route was very often in use till Kushan period. Later period saw
it becoming unsafe, due to robbers.

The Periplus of Erythrean Sea is a travellers handbook (Erythrean SeaRed sea). It
mentions more than 20 trade ports like: Barygaza (Broach), Suppara (Soparal), Kalliena
(Kalyana), Muziris (Pondicherry), Soptama (Madras), Puhar (Orissa), Masalia
(Masulipatnam).

The important exports from India were: Fine textiles from Varanasi, Malabathrum (spicy
leaves) from Tamralipti (Tamluk, Ganga, Bengal), muslins (Pondicherry), pepper (Muziris),
ivory (Puhar, Orissa).

Pepper was a very valuable export till 13th century A.D. Marco Polo (Italy) mentions that a
ship was measured by the number of pepper baskets contained in it.

Trade suffered a setback in 3rd century A.D. But in the 4th century A.D., silk trade increased
and silk was brought within reach of the common man. The decline in the westward trade
towards the 2nd-3rd century A.D. was later compensated for by the prospering trade now
developed with the south-east Asian States like the Suvarnabhumi, Kambuja (Kampuchea),
Champa (Annam).
During Guptas, there was no material change in the previous trade-routes, trade practices,
organisation, currency system, etc. The one note-worthy change was a decline in the Roman
trade and the three major ports of Muziris, Arikamedu and Kaveripattinam.

In his plays, Kalidas potraits a good view of the town markets and trade transactions. The
internal trade now expanded to several inland trade centres.

Roman emperor Aurelian declared Indian silk to be its worth in gold. Indians acted as
intermediaries to the Chinese silk trade and the Western States.

Among spices, pepper always held the first place and was declared passion of the Yavanas
(Romans).

The demand for Roman goods was smaller than that of Indian goods abroad and it suffered an
adverse trade balance of trade. To make up this balance, the Romans supplied gold and silver
coins to India. This ever-increasing drain of wealth was once complained by the emperor
Tiberious (22 A.D.). The author Pliny also laments such losses.

The Kushanas remoulded the Roman coins so that they could be used as currency.

Among imports, there were singing boys, virgins for the rulers harem, slaves and valuable
corals (Mediterranean Red Variety), dates, Italian vases and wines, sweet clovers, glass, tin
(Spain), emeralds, etc.

The Divyavadana refers to the science of testing gems. The merchants sons were trained in
64 Angavidyas or finearts, according to Vatsyayana.

Rome, the Chief importer of Indian muslin, once banned it, due to the rising loss of morals of
its females.

Narada, Katyayana and Brihaspati gave specific instructions towards the rights and duties of
guild members, in their smritis. Gupta sites of Basarh (Vaisali) and Bhita (Allahabad) bear
the names Nigama and Sreni Sarthavaha Kulika Nigama at Vaisali.

India obtained brass, lead and gold from foreigners, whereas Indian iron and steel (saikya
ayas) was very advanced in quality and was exported.

Milindpanho mentions 75 trades, 60 related to crafts, 8 to metals.

Charaksamhita (on Indian traditional medicine and surgery) recommends the use of saikya
ayas for operations.

Nasik cave inscription tells that srenis often acted as law providers also. (Sresthis, are now
called as Seths, Settis in South India and also Chettiyars).

Rate of interest fluctuated greatly, but was usually near 15% (higher for loans for sea-trade).

The common coins were: Nishka and Pala of Gold, Shatmana of silver, Kakini of copper and
brass. The most common coin Karshapana was made of various metals.

The major source of revenue for Guptas was land revenue.

Textiles formed a major industry in this period. Rock cutting also evolved as another
important occupation due to the rapid rise in use of statues for prayers.

India imported horses from Arabia, Iran and Bactria.

Ujjain was the most flourishing trade centre in and around the Gupta period.
Agrarian Structure in Post-Gupta period

A lot of confusion about agrarian structure of post-Gupta period exists, due to the
contradictory picture provided by several Smriti writers and other sources.

There were several land grants, both secular and religious in nature. The secular grants were
mostly towards the high officials while religious grants were towards the Brahmins and the
temples.

The practice of land grants finally developed feudalism. The peasant, who was initially free
was now under severe burden. There were several intermediate classes of land owners.

There was an increase in the forced labour, Vishti, due to the emergence of a "landed
aristocratic class.

The peasants were mostly sudras. In fact, peasants were thought of as sudras.

All land was supposed to be under the State ownership, but in practice individuals were
owners of land.

Various categories of ownerships existed, like Sakta (land owned by individuals), Prakrsta
(tilled by certain individuals), Kaustambakshetra (fields owned by cultivators themselves).

In a few land grants, villages are described as also carrying with them the right towards all
traders living in it. The grants were rent-free.

Aprada, Sasana, Chaturvaiya-grama, Brahmadeya, etc are names of land grants. The rights
were hereditary.

The Kashmiri ruler Shankaravarman used to usurp lands from grant holders.

During Harsha, cash payments were usually for military services only.

Agrahara land was granted only to brahmins.

Social Changes

Rig Vedic society was chiefly pastoral and semi-nomadic. Their chief wealth was the gau
(cow) and a wealthy person was called gomat, the king or head was called gopati or gopa.

Vedic society in early period had no such serving class like the shudras.

Early literature of the Buddhists provides a picture of a settled agricultural economy and an
emerging commerce in urban centres.

Mauryas saw a tremendous increase in trade.

The Gupta period saw changes in agrarian structure due to system of land grants.

Varna Samkara denotes mixed castes, considered ritually impure, included tribes or
descendants of intercaste marriages.

A child born out of brahmin and vaishya combination was called ambastha and that of
brahmin and sudra as nisada, vaishya and sudra as ugra, brahmin and sudra as parsava.

In the later vedic period, there were as many as 17 kinds of priests looking into various
sacrifices. The Brahmin was one such priest, who gradually surpassed them and became their
representative.

Besides the four varnas, there was a Panchamvarna (5th varna), comprising the untouchables.

The principal tax-payers were the vaishyas.

The social transformation of vaishya and sudras was under crisis in the 3rd century A.D., due
to refusal to stick to their occupations and pay taxes. The practice of land grants was started
by a few rulers to relax the tax collections, now entrusted to grant holders.
The term Rajanya, existing in literary sources as well as in coins, signifies kshatriyas.

In the Buddhist texts, the social order is denoted as: kshatriya, brahmin, vaishya and sudra
(i.e. brahmins at 2nd place, not first). Vaishyas are called grahapatis or householders.

The samskaras were important religious sacraments for the human body. They are generally
16 in number.

There are eight forms of marriage, according to the Dharmasastras. The approved ones are:
Brahma, Prajapatya, Daiva and Arsa. Divorce was severely condemned. The unapproved
ones were: asura, paisacha, rakshasa and gandharva (love marriage). Re-marriage was
allowed by the Brahmanical law givers as well as by Kautilya.

Polygamy was generally practiced by the socially upper classes.

Inter-caste marriages were generally in Anuloma system (marriage of high caste male with
low caste female).

There were several mixed castes also, arising out of tribals and foreigners.

The asura form of marriage (marriage by purchase) was quite prevalent, even though not
approved by the shastras.

The position of women declined during the pre-Gupta and Gupta times and further more in
later periods.

The use of veils (purdah) by women can be noticed near Harshas times (his sister Rajyasri
used it) and increased during the advent of Muslims.
Some smritis encourage the practice of sati. The first definite historical incident of sati is
recorded in 510 A.D., in the case of wife of Goparaja (a general of Bhanu Gupta). It existed
mostly in Deccan and Central India.

Smritis recommend an austere life for widows. The skanda purana advocates the shaving of
heads of widows.

During post-Gupta period, Vaishnava Dharma was prevalent in India. Lalitaditya of Kashmir,
Sens of Bengal, Chandels and Chauhans were mostly Vaishnavites. However, the epicentre
of Vaisnavism was the Tamil region.

Alwar saints brought the worship of Vishnu to new heights, mainly in the 9th and 10th
centuries. Two famous female Alwar saints were Andal and Namallalwar.

Among Hindus, Shaivites were most numerous. The Pala rulers of Bengal were Buddhists,
but their inscriptions begin with Om Namah Shivaya.

Ganesha became a popular deity of the Hindus in the 10th century A.D., especially in the
western States, where Ganapati cult arose and held Ganesha as higher than other deities.
Ganesha Chaturthi celebrations (mentioned in Agni Purana) are believed to originate
somewhere around 9-10th century A.D.

Huen Tsang, speaks of a flourishing Buddhist faith, even in the 7th century A.D., besides
other faiths, especially in U.P., Bihar and Bengal.

The Kayastha caste was also born somewhere during Gupta period. They were usually scribes
under State service. First mention of Kayasthas is made by Yajyavalkya. During Guptas, they
existed only as a social class and later they got converted into a caste.

Antayajas were a class of people living outside the town, as they were considered
untouchables. The synonym Chandala has also been used for them. They were considered
even lower than the sudras.