Maurya Empire - Economy

Economy

For the first time in South Asia, political unity and military security allowed for a common economic system and enhanced trade and commerce, with increased agricultural productivity. The previous situation involving hundreds of kingdoms, many small armies, powerful regional chieftains, and internecine warfare, gave way to a disciplined central authority. Farmers were freed of tax and crop collection burdens from regional kings, paying instead to a nationally administered and strict-but-fair system of taxation as advised by the principles in the Arthashastra. Chandragupta Maurya established a single currency across India, and a network of regional governors and administrators and a civil service provided justice and security for merchants, farmers and traders. The Mauryan army wiped out many gangs of bandits, regional private armies, and powerful chieftains who sought to impose their own supremacy in small areas. Although regimental in revenue collection, Maurya also sponsored many public works and waterways to enhance productivity, while internal trade in India expanded greatly due to newfound political unity and internal peace.

Under the Indo-Greek friendship treaty, and during Ashoka's reign, an international network of trade expanded. The Khyber Pass, on the modern boundary of Pakistan and Afghanistan, became a strategically important port of trade and intercourse with the outside world. Greek states and Hellenic kingdoms in West Asia became important trade partners of India. Trade also extended through the Malay peninsula into Southeast Asia. India's exports included silk goods and textiles, spices and exotic foods. The Empire was enriched further with an exchange of scientific knowledge and technology with Europe and West Asia. Ashoka also sponsored the construction of thousands of roads, waterways, canals, hospitals, rest-houses and other public works. The easing of many over-rigorous administrative practices, including those regarding taxation and crop collection, helped increase productivity and economic activity across the Empire.

In many ways, the economic situation in the Mauryan Empire is analogous to the Roman Empire of several centuries later. Both had extensive trade connections and both had organizations similar to corporations. While Rome had organizational entities which were largely used for public state-driven projects, Mauryan India had numerous private commercial entities. These existed purely for private commerce and developed before the Mauryan Empire itself. (See also Economic history of India.)