Economy of the Rashtrakutas [753-982 AD]

Agriculture and Natural Resources

• Agricultural Produce:
  • The economy heavily relied on its rich agricultural produce. Cotton was the chief crop in southern Gujarat, Khandesh, and Berar regions.
  • The Konkan region, under the Silharas, produced betel leaves, coconut, and rice.
  • Mysore, ruled by the Gangas, was known for its lush forests yielding sandalwood, timber, teak, and ebony.
• Textile Industry:
  • Key textile centers included Minnagar, Gujarat, Ujjain, Paithan, and Tagara.
  • Paithan and Warangal were famous for muslin cloth production.
  • Bharuch was a hub for exporting cotton yarn and cloth.
  • Calicos were produced in Burhanpur and Berar and exported to Persia, Byzantium, Khazaria, Arabia, and Egypt.

Mining and Mineral Wealth

• Mineral Resources:
  • Copper mines were significant in regions like Cudappah, Bellary, Ahmadnagar, Bijapur, and Dharwar.
  • Diamond mines in Cudappah, Bellary, Kurnool, and Golconda contributed to the empire’s wealth. Manyakheta and Devagiri were prominent centers for diamond and jewelry trade.
• Other Industries:
  • The leather industry and tanning were prominent in Gujarat and northern Maharashtra.
  • Mysore, known for its elephant herds, supported a thriving ivory industry.

Maritime Trade

• Maritime Control:
  • The empire’s control over the western sea board facilitated extensive maritime trade.
  • Bharuch was an important port, contributing significantly to the empire’s income and recognized as one of the world’s most prominent ports at the time.
• Exports and Imports:
  • Chief exports included cotton yarn, cloth, muslins, hides, mats, indigo, incense, perfumes, betel nuts, coconuts, sandalwood, teak, timber, sesame oil, and ivory.
  • Major imports were pearls, gold, dates from Arabia, slaves, Italian wines, tin, lead, topaz, storax, sweet clover, flint glass, antimony, gold and silver coins, and entertainers.
  • The horse trade was particularly lucrative, controlled by Arabs and local merchants.
• Taxation on Trade:
  • The government levied a shipping tax of one golden Gadyanaka on all foreign vessels and a silver Ctharna on local vessels.

Guilds

• Guild System:
  • Artists and craftsmen operated as guilds rather than individuals, covering weavers, oilmen, artisans, basket and mat makers, and fruit sellers.
  • Guilds were influential, sometimes considered superior, and often received royal charters defining their powers and privileges.
• Self-Governance and Security:
  • Guilds maintained their own militia for the protection of goods in transit and operated banks that provided loans to traders and businesses.

Revenue and Taxation

• Sources of Government Income:
  • The empire’s income was derived from regular taxes, occasional taxes, fines, income taxes, miscellaneous taxes, and tributes from feudatories.
  • Occasional taxes were imposed during emergencies, like wars or natural calamities.
• Land and Income Taxes:
  • Land taxes varied between 8% to 16% based on the land type, produce, and location. In times of military need, it could be as high as 20%.
  • Taxes were primarily paid in goods and services, with cash rarely accepted. About 15% of tax revenues were returned to villages for local maintenance.
• Artisan and Trade Taxes:
  • Artisans, such as potters, weavers, and shopkeepers, paid various taxes. Taxes on perishable goods and essentials could be as high as 16%.
  • Although the state did not claim sole ownership of mines, it imposed taxes on mineral and salt extraction, encouraging private prospecting and quarrying.
• Miscellaneous Taxes:
  • These included ferry taxes, house taxes, and inheritance taxes on properties without legal heirs. Brahmins and temples enjoyed lower tax rates.
• Tax Determination:
  • The king adjusted tax levels based on the kingdom’s needs, ensuring peasants were not overburdened.
  • An example includes a reassessment of land tax in Banavasi due to an irrigation canal drying up in 941 CE.

Read More: Rashtrakuta Empire

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