Mughal Economy and Trade

The Mughal period witnessed remarkable economic growth, driven by agricultural expansion, manufacturing, and flourishing trade.

Agriculture and Production

Agriculture was the primary source of wealth. The state invested in irrigation (canals, wells) and extension of cultivation. Cash crops like cotton, indigo, sugarcane, opium, and silk were widely grown. Indigo was a major export to Europe. The textile industry, especially cotton and muslin, was globally renowned – Dhaka’s fine muslin was known as “woven air.”

Trade Routes and Ports

Internal trade was facilitated by a network of roads, including the Grand Trunk Road and river navigation (Ganges, Yamuna, Indus). Major ports included Surat (the “gateway to Mecca”), Cambay, Masulipatnam, Hooghly, and later Bombay, Madras, Calcutta.

European Trade

From the 16th century, European trading companies began establishing footholds:

• Portuguese: Controlled Goa, Diu, and Daman; dominated early spice trade.
• Dutch (VOC): Focused on textiles and spices; active in Coromandel coast, Bengal.
• English East India Company (EEIC): Established factories at Surat (1612), Madras (1639), Bombay (1668), and Calcutta (1690).
• French: Established factories at Pondicherry, Chandernagore.

The influx of New World silver and gold in exchange for Indian goods monetized the economy further.

Crafts and Industry

Mughal India had a large and skilled artisan class. Urban centers like Agra, Delhi, Lahore, and Ahmedabad were hubs of production. The karkhanas (royal workshops) produced luxury goods for the court. Banking and credit networks (sarrafs) financed trade and state operations.

Despite this prosperity, the burden of land revenue and frequent wars limited the purchasing power of the peasantry, keeping the domestic market shallow.