Rashtrakuta Dynasty - Economy

Economy

See also: Economy of Rashtrakuta empire of Manyakheta

The Rashtrakuta economy was sustained by its natural and agricultural produce, its manufacturing revenues and moneys gained from its conquests. Cotton was the chief crop of the regions of southern Gujarat, Khandesh and Berar. Minnagar, Gujarat, Ujjain, Paithan and Tagara were important centres of textile industry. Muslin cloth were manufactured in Paithan and Warangal. The cotton yarn and cloth was exported from Bharoch. White calicos were manufactured in Burhanpur and Berar and exported to Persia, Turkey, Poland, Arabia and Egypt. The Konkan region, ruled by the feudatory Silharas, produced large quantities of betel leaves, coconut and rice while the lush forests of Mysore, ruled by the feudatory Gangas, produced such woods as sandal, timber, teak and ebony. Incense and perfumes were exported from the ports of Thana and Saimur.

The Deccan was rich in minerals, though its soil was not as fertile as that of the Gangetic plains. The copper mines of Cudappah, Bellary, Chanda, Buldhana, Narsingpur, Ahmadnagar, Bijapur and Dharwar were an important source of income and played an important role in the economy. Diamonds were mined in Cudappah, Bellary, Kurnool and Golconda; the capital Manyakheta and Devagiri were important diamond and jewellery trading centres. The leather industry and tanning flourished in Gujarat and some regions of northern Maharashtra. Mysore with its vast elephant herds was important for the ivory industry.

The Rashtrakuta empire controlled most of the western sea board of the subcontinent which facilitated its maritime trade. The Gujarat branch of the empire earned a significant income from the port of Bharoch, one of the most prominent ports in the world at that time. The empire's chief exports were cotton yarn, cotton cloth, muslins, hides, mats, indigo, incense, perfumes, betel nuts, coconuts, sandal, teak, timber, sesame oil and ivory. Its major imports were pearls, gold, dates from Arabia, slaves, Italian wines, tin, lead, topaz, storax, sweet clover, flint glass, antimony, gold and silver coins, singing boys and girls (for the entertainment of the royalty) from other lands. Trading in horses was an important and profitable business, monopolised by the Arabs and some local merchants. The Rashtrakuta government levied a shipping tax of one golden Gadyanaka on all foreign vessels embarking to any other ports and a fee of one silver Ctharna ( a coin) on vessels travelling locally.

Artists and craftsman operated as corporations (guilds) rather than as individual business. Inscriptions mention guilds of weavers, oilmen, artisans, basket and mat makers and fruit sellers. A Saundatti inscription refers to an assemblage of all the people of a district headed by the guilds of the region. Some guilds were considered superior to others, just as some corporations were, and received royal charters determining their powers and privileges. Inscriptions suggest these guilds had their own militia to protect goods in transit and, like village assemblies, they operated banks that lent money to traders and businesses.

The government's income came from five principal sources: regular taxes, occasional taxes, fines, income taxes, miscellaneous taxes and tributes from feudatories. An emergency tax was imposed occasionally and were applicable when the kingdom was under duress, such as when it faced natural calamities, or was preparing for war or overcoming war's ravages. Income tax included taxes on crown land, wasteland, specific types of trees considered valuable to the economy, mines, salt, treasures unearthed by prospectors. Additionally, customary presents were give to the king or royal officers on such festive occasions as marriage or the birth of a son.

The king determined the tax levels based on need and circumstances in the kingdom while ensuring that an undue burden was not placed on the peasants. The land owner or tenant paid a variety of taxes, including land taxes, produce taxes and payment of the overhead for maintenance of the Gavunda (village head). Land taxes were varied, based on type of land, its produce and situation and ranged from 8% to 16%. A Banavasi inscription of 941 mentions reassessment of land tax due to the drying up of an old irrigation canal in the region. The land tax may have been as high as 20% to pay for expenses of a military frequently at war. In most of the kingdom, land taxes were paid in goods and services and rarely was cash accepted. A portion of all taxes earned by the government (usually 15%) was returned to the villages for maintenance.

Taxes were levied on artisans such as potters, sheep herders, weavers, oilmen, shopkeepers, stall owners, brewers and gardeners. Taxes on perishable items such as fish, meat, honey, medicine, fruits and essentials like fuel was as high as 16%. Taxes on salt and minerals were mandatory although the empire did not claim sole ownership of mines, implying that private mineral prospecting and the quarrying business may have been active. The state claimed all such properties whose deceased legal owner had no immediate family to make an inheritance claim. Other miscellaneous taxes included ferry and house taxes. Only Brahmins and their temple institutions were taxed at a lower rate.