The Main Features of Medieval Indian Economy:
(1) Agriculture: (a) The Delhi Sultanate as well as the Mughal empire was based on the surplus agricultural produce of the peasants that was extracted in the form of revenue.
(b) In the Mughal empire, particularly in the reign of Akbar, far reaching changes and improvisation were made in the system of revenue collection. It was no longer an arbitrary understanding between the state and the peasant or the landed classes like the Zamindar. Land was now measured and land revenue was fixed according to the exact area of land. Fertility of the land was also taken into account. The cash value of the state's share of the produce was then calculated according to prevailing market rates and the revenue was fixed in cash terms accordingly.
(c) The state encouraged payment of revenue in cash. This was a period (the Mughal Period) of commercialization of agriculture and the state encouraged cash crop production.
(d) The state also took a lot of interest in the extension of cultivation into areas which were hitherto uncultivated or forest areas.
(e) The state of medieval India gave different incentives to pioneer agriculturists.
(f) The state also advanced loans to peasants as well as revenue relief in time of crop failure.
(2) Trade and Commerce: (a) Trade and commerce which had declined greatly following the period of the Guptas (after 550 A.D.) also saw a revival during this time. Urban centers also flourished after a considerable period of decline Inland trade increased in the thirteenth and fourteenth centuries as a result of this new urbanization. A large network of roads connecting these urban centers came up which also facilitated trade. Cities like Delhi, Agra, Lahore, Multan, Dhaka, Ahmedabad, Surat and Cambay rose in importance.
(b) The merchants from Punjab were sent to markets in West and Central Asia.
Political stability and relative peace established by the Mughals made it possible to travel with considerable cash between any two cities of the empire.
(c) Coastal trade also flourished.
(d) There were a large number of trading classes and commercial practices were of high standard and integrity. The Seths, Bohras and Modis were engaged in long distance trade, while Beopari's and Banias dealt in local and retail trade. The Banjaras were a special class of traders who carried bulk goods, particularly food stuff.
(e) The Sarrafs or Shroff were money changers who issued hundis or bills of exchange. The hundi was a letter of credit that could be paid at a later date.
This facilitated the movement of goods from one part of the country to another as it made the transaction of money over long distances remarkably easy.
