History Ancient India Questions Medium
The economic system of the Mughal Empire was characterized by a combination of agrarian and trade-based economy. Agriculture played a significant role in the empire's economy, with the majority of the population engaged in farming. The Mughals introduced various agricultural innovations, such as the use of Persian wheel for irrigation, which led to increased agricultural productivity.
The empire had a well-developed system of land revenue administration known as the Zamindari system. Under this system, the land was divided into different categories, and revenue was collected from the peasants by the zamindars (landlords) who were appointed by the Mughal emperor. The revenue collected was used to finance the empire's administration and military.
Trade also played a crucial role in the Mughal economy. The empire had a vast network of trade routes, both within the empire and with other regions. The Mughals encouraged trade by providing a safe and secure environment for merchants and traders. They also established a system of market towns and fairs, which facilitated the exchange of goods and services.
The Mughal Empire was known for its flourishing textile industry, particularly the production of fine-quality cotton and silk textiles. These textiles were in high demand both within the empire and in international markets. The empire also had a significant presence in the global spice trade, with merchants trading spices such as pepper, cloves, and cinnamon.
The Mughals also introduced a system of coinage, with the silver rupee being the primary currency. The empire had a well-organized system of minting coins, which helped in facilitating trade and commerce.
Overall, the economic system of the Mughal Empire was characterized by a strong agrarian base, supported by trade and commerce. The empire's economic prosperity was driven by agricultural productivity, trade networks, and the production of high-quality textiles.