Economy of Ancient Tamil Country

Economy Of Ancient Tamil Country

The economy of the ancient Tamil country (Sangam era: 200 BCE – 200 CE) describes the ancient economy of a region in southern India that mostly covers the present-day states of Tamil Nadu and Kerala. The main economic activities were agriculture, weaving, pearl fishery, manufacturing and construction. Paddy was the most important crop; it was the staple cereal and served as a medium of exchange for inland trade. Pepper, millets, grams and sugarcane were other commonly grown crops. Madurai and Urayur were important centers for the textile industry; Korkai was the center of the pearl trade. Industrial activity flourished.

Inland trading was conducted primarily through barter in busy market places by merchant associations and commercial lending institutions. Merchants formed associations that operated autonomously, without interference from the state. The people of ancient Tamil country engaged in brisk overseas trade with Rome; the trade reached a peak after the discovery of a direct route for merchant ships between Tamilakam and Egypt, taking advantage of the monsoon winds. Pepper, pearls, ivory, textiles and gold ornaments were exported from Tamilakam, and the main imports were luxury goods such as glass, coral, wine and topaz. Foreign trade brought in a large amount of internationally convertible Roman currency.

The state played an important role in building and maintaining infrastructure such as roads and ports—funded through taxation—to meet the needs of economic and social activity. Wealth was unequally divided among the people, giving rise to distinct economic classes.