Economic Condition of the Vijayanagara Empire
Medieval History › Vijayanagara Empire · Topic 4.6
The Vijayanagara economy rested on agriculture, irrigation works such as dams and tanks, and a large trade in horses, spices and textiles through the west coast ports. Land tax varied by crop and irrigation, other taxes were many, towns grew around temples, and temples joined trade, so historians see the period as a transition from the old to the new economy.
5 min read · UPSC Prelims · History · Vijayanagara Empire
At a Glance
- Base Agriculture with irrigation
- Land tax One-third, one-fourth or one-sixth depending on the crop
- Trade goods Spices, textiles, horses
- Urban feature Towns around temples
- Pressure Horse imports controlled by Arabs and then the Portuguese
- Exam link UPSC Prelims, Medieval History: Vijayanagara Empire
Where Does It Fit?
This is the sixth topic of the category on the Vijayanagara Empire. The previous topic covered social and cultural life, and this topic covers how the empire earned and spent. The next topic covers its conflicts with the Bahmani kingdom. Previous topic: Social and Cultural Life Under the Vijayanagara Empire.
How Heavy Was the Land Tax?
In short: Vijayanagara raised revenue mainly from land at rates that depended on crop, soil and irrigation, with many other taxes added.
Historians are not agreed about the economic condition of the peasantry, because most travellers had little knowledge of village life. We have very little idea of the share of produce the peasants paid. One inscription gives rates by crop.
| Crop | Share of produce |
|---|---|
| Kuruvai rice, winter crop | One-third |
| Sesame, ragi, horsegram and similar | One-fourth |
| Millet and other dry-land crops | One-sixth |
The rate thus varied with the type of crop, the soil and the method of irrigation. Other taxes included a property tax, a tax on sale of produce, profession taxes, a military contribution in times of distress and a tax on marriage.
What Did the State Do for Irrigation?
Deva Raya I built a dam across the Tungabhadra to bring canals into the capital and ease the shortage of water. It also irrigated nearby fields, and the canals are said to have raised his revenue by 350,000 pardaos. He built another dam on the river Haridra. Krishna Deva Raya dug an enormous tank near the new town he built, which was also used for irrigation. Canals and a royal water system supported the capital at Hampi, with streams and canals of chiselled stone noted by Abdur Razzaq.
How Did Trade and Towns Develop?
Urban life grew under Vijayanagara and trade flourished. Many towns grew around temples, whose large needs for food and goods to feed priests and pilgrims created demand. The temples were rich and took part in trade at home and overseas. For this reason many historians see Vijayanagara rule as a period of transition from the old to the new economy. Abdur Razzaq reported three hundred ports in the king’s lands, each as large as Calicut, which is likely exaggerated. Trade in spices, textiles and horses moved through west coast ports such as Mangalore and Calicut.
The empire’s revenue was large: one estimate gives 12,000,000 parados a year, of which only half went to the centre.
Why Was the Horse Trade Critical?
Most of the good mounts of the Vijayanagara cavalry had to be imported, and the Arabs who controlled the trade charged high prices. Goa in the Konkan was the main outlet for imports of horses from Iran and Iraq. Control of this trade was a reason for Vijayanagara’s wars with the Bahmanis and Bijapur. Rama Raja made a commercial treaty with the Portuguese that cut off the supply of horses to Bijapur. When Albuquerque seized Goa in 1510, Vijayanagara’s own supply depended on friendly terms with the Portuguese, who had offered Krishna Deva Raya a monopoly on horses. Krishna Deva paid little attention to a navy, unlike the Cholas and early Vijayanagara kings.
How Should the Economy Be Assessed?
As an analytical point, Vijayanagara combined a rich court and capital with a rural economy of moderate to heavy burdens. Its wealth came from trade and tribute, and much was hoarded as bullion, which stayed out of circulation and invited foreign attack. The need to buy horses overseas gave outside traders and the Portuguese a lever against it. These pressures fed into the larger story of conflict with the Deccan sultanates in Conflicts of Vijayanagara with the Bahmani Kingdom.
Why Is This Topic Important?
- Taxes The one-third, one-fourth and one-sixth rates are exam favourites
- Horse trade Explains wars and Portuguese leverage
- Transition A mark of change from the old to the new economy
What Came Next?
The next topic covers the long conflict of Vijayanagara with the Bahmani kingdom. Next topic: Conflicts of Vijayanagara with the Bahmani Kingdom.
Key People and Terms
- Parado Currency unit
- Kuruvai Winter rice crop
- Pardao Coin in the traveller accounts
- Bullion Stored gold and silver
- Haridra River with a dam by Deva Raya I
- Transition economy Move from old to new
Exam Corner
Points to Remember
- Kuruvai rice: one-third; millets: one-sixth.
- Deva Raya I built a dam on the Tungabhadra.
- Horses came through Goa.
- Centre got about half the income.
- Towns grew around temples.
Do Not Confuse With
- Land tax and other taxes Crop-based share versus property, profession and marriage taxes
- Tungabhadra dam and Haridra dam Two works of Deva Raya I
- Vijayanagara bullion and circulation Stored wealth versus money in use
Memory Hook
One-third for rice, a dam for water, horses for war, temples feed the town.
Mains Angle
Questions on the economy ask about taxes, trade and urban growth. These points add depth.
- Revenue Crop-based rates and many other taxes
- Trade Ports and horse imports
- Urban Temple towns and transition
A Question You May Face
An original practice question, not a past paper question.
“Discuss the revenue system and trade of the Vijayanagara Empire.”
How to Answer
- Land tax Rates by crop.
- Other taxes Property, profession and marriage.
- Trade Ports and horses.
- Towns Temple-centred growth.
GS Relevance
Frequently Asked Questions
What were the land tax rates in Vijayanagara?
One inscription shows one-third of the produce for kuruvai rice, one-fourth for sesame, ragi and horsegram, and one-sixth for millets and other dry-land crops. Rates varied with crop, soil and irrigation, and many other taxes existed besides.
What irrigation works did Vijayanagara build?
Deva Raya I built a dam across the Tungabhadra to bring water to the capital by canals, and a dam on the river Haridra. Krishna Deva Raya dug a huge tank near his new town that also irrigated fields.
Why was the horse trade so important?
Good horses had to be imported, mostly through Goa from Iran and Iraq, and the Arabs controlled the trade at high prices. Vijayanagara's cavalry depended on this trade, so control of ports and treaties with the Portuguese mattered greatly.
How did temples affect the economy?
Temples were rich and large, needed food for worship and pilgrims, and took part in internal and overseas trade. Many towns grew around temples, which made them important centres of urban and economic life for the whole empire.
What other taxes were there?
Besides land tax, there were property taxes, taxes on the sale of produce, profession taxes, a military contribution in times of distress, and a tax on marriage. These added to the burden on villagers noted by travellers.
PYQ Practice — Statement Analysis
1 The land tax on millets and dry crops was one-sixth of the produce.
Rice paid one-third.
2 Deva Raya I built a dam across the Tungabhadra.
It brought canals into the city.
3 Vijayanagara bred most of its horses locally.
Most good horses were imported.
4 Many Vijayanagara towns grew around temples.
Temples also traded.
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