Inland Trade in Medieval India
Medieval History › Medieval Economy & Trade · Topic 8.1
Inland trade in medieval India was not only in luxuries but in foodstuffs and textiles, carried by banjaras, river boats and coastal vessels along regional links: Bengal's sugar, rice, muslin and silk, Coromandel's textiles, Gujarat's silks and entry of foreign goods, Lahore's handicrafts and Kashmir goods. Wholesalers, agents, dalals and hundis made it work, helped by roads, sarais and law and order.
5 min read · UPSC Prelims · History · Medieval Economy & Trade
At a Glance
- Goods Foodgrains and textiles led
- Carriers Banjaras, boats, camels, carts
- Finance Hundis and sarrafs
- Nodes Burhanpur and Agra
- Helped by Roads, sarais, silver rupee
- Exam link UPSC Prelims, Medieval History: Medieval Economy & Trade
Where Does It Fit?
This is the first topic of the category on medieval economy and trade. The previous category described society, including the merchant classes, and this category follows the flow of goods. The next topic covers overseas trade and the European companies. Previous topic: The Middle Strata and Commercial Classes in Medieval India.
What Moved in Inland Trade?
In short: inter-regional trade was not only in luxuries; foodstuffs and a wide range of textiles were its most important components.
| Region | Role in trade |
|---|---|
| Bengal | Exported sugar and rice, delicate muslin and silk |
| Coromandel coast | A centre of textile production with a brisk trade with Gujarat, along the coast and across the Deccan |
| Gujarat | Entry point of foreign goods; exported fine textiles and silks (patola) to north India with Burhanpur and Agra as the two nodal points; received foodgrains and silk from Bengal and imported pepper from Malabar |
| North India | Imported luxury items and exported indigo and foodgrains |
| Lahore | A centre of handicraft production and distribution centre for Kashmir’s luxuries, shawls and carpets |
| Punjab and Sindh | Products moved down the Indus, with close links to Kabul and Qandhar and to Delhi and Agra |
How Was It Carried?
The banjaras specialised in carrying bulk goods, sometimes with thousands of oxen carrying foodgrains, pulses, ghee and salt. More expensive goods such as textiles and silks went on camels and mules or in carts. Moving bulk goods through rivers by boat was cheaper, and boat traffic on waterways and coastal trade along the sea were more developed than at present. The Mughals paid attention to roads and sarais, with sarais at regular distances on principal highways, and safety on roads was satisfactory and could be insured. Road cesses (rahdari) were declared illegal though some local rajas kept collecting them, and taxes were levied on goods at the point of entry into the empire. The Sher Shah roads are in Sher Shah’s Administrative Reforms (Currency System, Roads, Sarais, Land Revenue Settlement).
Who Organised It and How Was It Financed?
Movement of goods needed complex networks linking wholesalers with merchants down to regional and local levels through agents (gumashtas) and commission agents (dalals). The Dutch and English who came to Gujarat in the seventeenth century found Indian traders active and alert: there was keen competition for inside information, and when a demand arose in one part of the country it was quickly met. Money moved easily through hundis, letters of credit payable after a period at a discount, often with insurance varying with the value of goods, destination and means of transport. Sarrafs, who specialised in changing money, also dealt in hundis and acted as private banks, taking deposits from nobles and lending. By hundis they created credit that supplemented the money in circulation, and when rich traders such as Virji Vohra set up agency houses in different parts of India and in West and Southeast Asia, the risky movement of cash could be reduced. The communities and families behind this are in The Middle Strata and Commercial Classes in Medieval India.
Why Did Trade Expand?
| Factor | Detail |
|---|---|
| Integration | Political unity under the Mughals and law and order over wide areas |
| Money | Silver rupees of high purity minted at mints across the empire; any trader could take silver to the mint for coins on payment of a batta |
| Cash economy | Salaries of the standing army and many officials paid in cash; land revenue under zabti paid in cash; about 20 per cent of rural produce marketed; grain markets gave rise to qasbas |
| Demand | Nobles’ demand for luxuries expanded handicrafts and towns |
| State help | Arms manufacture and shipping grew through government interest |
As an analytical point, the key to Mughal inland trade was not any single route but a set of connected regional specialisations held together by credit and a common coinage. Overland trade abroad is in Qandahar, Lahore, Multan Colonies Iran, Baku, Astrakhan,…">Position of Indian Merchants in Overland Trade, and the state’s role in Mughal State’s Relationship with Commerce.
Why Is This Topic Important?
- Regional links Goods of each region are asked
- Finance Hundis and sarrafs
- Growth causes Mughal policies and monetisation
What Came Next?
The next topic describes overseas trade and the role of European trading companies. Next topic: Overseas Trade and the Role of European Trading Companies.
Key People and Terms
- Banjara Bulk goods carrier
- Hundi Credit letter
- Sarraf Banker and money changer
- Gumashta Agent
- Dalal Commission agent
- Rahdari Road cess
Exam Corner
Points to Remember
- Patola silks from Gujarat.
- Burhanpur and Agra: nodal points.
- Lahore: Kashmir luxuries distribution.
- Rahdari illegal but still collected.
- 20 per cent of rural produce marketed.
Do Not Confuse With
- Banjara and baniya Bulk goods carrier versus retail trader
- Hundi and batta Credit letter versus mint discount
- Gumashta and dalal Agent of a merchant versus commission broker
Memory Hook
Bengal rice, Gujarat silk, Coromandel cloth, Lahore shawls; banjara carries, hundi pays.
Mains Angle
Questions on inland trade ask for items, routes and mechanisms. These points add depth.
- Pattern Regional specialisation
- Mechanism Agents and hundis
- Growth Peace, coinage, monetisation
A Question You May Face
An original practice question, not a past paper question.
“Describe the organisation and growth of inland trade in Mughal India.”
How to Answer
- Goods Foodstuffs and textiles.
- Routes Regions and nodes.
- Organisation Banjaras, agents, hundis.
- Causes Peace, silver rupee, cash revenue.
GS Relevance
Frequently Asked Questions
What goods moved in inland trade in Mughal India?
Foodstuffs and a wide range of textiles were the most important goods in inter-regional trade. Bengal sent sugar, rice, muslin and silk, Gujarat sent patola silks, and north India exported indigo and foodgrains while importing luxury items.
Who were the banjaras?
Banjaras were traders who specialised in carrying bulk goods over long distances, sometimes with thousands of oxen carrying foodgrains, pulses, ghee and salt. More expensive goods such as textiles and silks went on camels, mules or carts.
What was a hundi?
A hundi was a letter of credit payable after a period at a discount, often including insurance, and it allowed money to move around the country without the risk of carrying coin. Sarrafs, who also acted as private banks, dealt in hundis.
Which towns were nodal points of Gujarat's trade with north India?
Burhanpur and Agra were the two nodal points of trade from Gujarat to north India. Gujarat exported fine textiles and silks to the north, and it was also the entry point of foreign goods into the interior of the country.
Why did inland trade grow under the Mughals?
It grew because of political integration, law and order, roads and sarais, a pure silver rupee, cash payment of salaries and land revenue, marketing of about 20 per cent of rural produce and the nobles' demand for luxuries.
PYQ Practice — Statement Analysis
1 Gujarat imported pepper from Malabar.
It also received foodgrains and silk from Bengal.
2 Hundis were letters of credit that included insurance.
Rates varied with value and transport.
3 Road cesses (rahdari) were legal under the Mughals.
They were declared illegal but still collected by some rajas.
4 Lahore was a distribution centre for Kashmir's shawls and carpets.
It also produced handicrafts.
Related Topics
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