प्राचीन भारत मैं आर्थिक व्यवस्था – Economic Organisation of Ancient India: by Ankit Agrawal

Economic Organisations of Ancient India: An assessment of their role in Human Empowerment

Ankit Agarwal

Research Associate,

Indian Archaeological Society

 

Introduction: The role of economic organisations is very significant in the economic development of any society. In present global scenario, these organisations emerged as the spine of the economy. In light of its widespread appeal, one is naturally inclined to inquire more about such organisations. Many questions can be pondered over including: what were the preconditions for the development of the corporate form; how did these organisation originate and spread; how many types of these organisations and what was the difference between the different forms of such organizations; and most importantly how did these organisations support the society in overall empowerment. All these questions are important not only for their own intrinsic value, but also because of the insights they may provide into the development of the corporate sector in emerging markets. In this paper, attempt has been made to explore a number of these questions in Ancient Indian scenario by examining the economic history and development of the economic prospect in Ancient India.

Development of Economic Organisations

In the Indian sub-continent, at around 5000 BCE, there is evidence of long distance trade.¹ In the mature phase of the Indus civilization, people were actively engaged in trade with other western civilizations. Evidence of seals from the Indus and Mesopotamia (circa 2600 BCE) suggests that the Indus Valley was a large net exporter to Mesopotamia.² During this period, the presence of important factors such as organisational form of trade, surplus productions etc. were congenial for the development of commercial apparatus.

In the growing economy of Vedic and post-Vedic periods, people must have realised the need of trade organisations. References of paṇi³ (trade caravans), gaṇa⁴ (traders group) and śreshṭhī⁵ (head of the organisation) in the Ṛgveda, and Brāhmaṇa clearly show the existence of some economic organisations during that time. In the starting phase, these organisations concentrated on basic commercial activities. But in later period, they started commercial training and education for increasing skills of their workers.⁶

Before 600 BCE, these organisations were far from the dominant mode of support for society. That is why there is no clear evidence of such organisations before this period. Contemporary India possessed a number of other forms of engaging in business or collective activity, including the gaṇa⁷, paṇi⁸, puga⁹, saṁgha¹⁰, nigama and śreṇi¹¹. According to Uraga jātaka, Śreshṭhī (head of the guilds) were involved in administrative works.¹² In the light of metal conversion as a currency and their important role in contemporary economy, economic organisations started banking activities.

During the Mauryan period, the economic organisations were associated with military activities.¹³ Mostly, rich guilds maintained armies which guarded trade caravans. During the post Mauryan period, these organisations also got connected with judicial activities.¹⁴

Owing to the peace and prosperity of the Guptaperiod, the trade organisations also developed in their own way. During contemporary era, śreṇi (guild), nigam, kulik and sārth were recognized as major economic organisations. Śreṇi was the most important and largest economic organisation, which was connected with most of the traders and workers.

Pāṇini used the word śreṇi to explain an assembly of persons following a craft or trade of common commodity¹⁵ which has been also defined in NāradSmṛti in similar fashion.¹⁶ If we consider the characteristic features of economic organisations within the above framework, then we may define the guild as an organisation of people, having no restriction on their social background, but related to a common trade or production of specific commodity or craft, created to achieve similar economic goals.

In the context of nigam, another important organisation, all businessmen made similar kind of arrangements. Nārad and Bṛihaspati Smṛtiexplained the assembly of Nigam as sambhue–samuththan.¹⁷ Nārad described sambhue–samuththan as a place, where traders (vanik prabhuti) worked together. Its belived nigam was an organisation of the businessmen who dealt with different products but belonged to a particular region having similar standard of trade such as nigam of wholesalers, retailers etc. The purpose of this organisation was to solve business related local problems.

Further, there was an organisation of the producers known as kulikā who worked in different industries like sugar and cloth. Kulikā is mentioned in inscriptions, seals and sealings.¹⁸ Another important organisation of exporters and importers was sārth. The businessmen who worked in the countries other than India were assembled in different sārth. The Amarkośa refers the head of the sārth organisation as sārthavāha.¹⁹ The traders who worked in Southeast Asian countries or western countries like Rome etc. were closely knit in different sārth.

These organisations began to develop horizontally. Different guildssuch as bangle sellers (shankhik), sellers of bedspread (pravrik), ivory workers (dantkar), stone workers (prastrik) etc. are described in contemporary manuscripts.²⁰ Some inscriptions also described local guilds such as guilds of oil millers of Indrapur²¹, guilds of silk weavers of Mandasor²² etc. These descriptions clearly show the existence of different economic organisations in same area.

Raghuvansh and some other manuscripts described about the guild of architect²³ and jewellers²⁴ etc., which show appearance of these organisations at different levels such as pranta (state), viśay (district) and village. The organisations of barber (Kastag), cobbler (chamyru), cattleman (guar), dyers (chimp),braziers (kasakar), hunter (bhill) etc. are among the eighteen guilds, mentioned in Jambudvipa inscription.²⁵ On the basis of inscriptional and literary evidences, it may be stated that existing economic organisations were growing towards both vertically and horizontally.

Role in Human Empowerment

Economic organisations played an active role in integrating the production, controlling the price of the raw materials, products, and maintaining the demand-supply factor of different production-community, the natural price of the products and also helped in preventing black marketing. These organisations were also the centres of professional education. Mandasor inscription referred a silk weaver’s organisation which also provided professional education.²⁶

Economic organisations also worked as a bank. On a seal,there is a reference of Kulik-Harisye suggesting an itinerant bank community.²⁷ Through these organisations people invested their money in the business sectors. This benefitted the public as people earned interest on their money and at the same time, the economic needs of those industries or business sectors were fulfilled. These organisationswould also provide locker facilities and loans on low interest rate to the people for a variety of projects.

These organisations were recognised as an important factor in the municipal government of ancient cities and also worked as trustees. According to Gaḍwa stone inscription, Chandragupta II had deposited 20 dinar with two guilds and the interest accrued on this was to be spent on religious activities.²⁸ It was quite common for these organisations to use some of their profits toward building or maintaining public gardens, tanks as well as providing funds for marriages or saṃskāra etc of economically weaker section of the society.²⁹

These organisations helped the society in emergency. They also supported people during natural disasters and to those who were ill, destitute or economically weak.³⁰ The śreṇimay have served to insure the people against calamities.Many inscriptions such asMandasor inscription, Indore copper plate inscription etc proved that some religious structures were built and maintained by these organisations. These organisations were also active in proliferation of religious and moral philosophies.

Economic organisation started judicial work from 1^st C. BCE and helped in maintaining law and order. Nārad Smṛti described śreṇi as a second court among the four courts i.e. kula, guilds, gaṇa, and king³¹ and Brihaspati elucidated their judicial work and responsibility.³² First description of the association of these organisations with the administrative work is proved by Jataka literature but the officers from economic organisations were appointed as administrative officer for the first time during the Gupta period.

From 300 BCE, such organisations started military work. First of all, Kautilya mentioned army of these organisations as śreṇivala.³³ Śreṇivala helped monarchy in emergencies such as external invasion. Even during the Gupta period, the forces of these organisations (śreṇivala) were equivalent to hired soldiers. During the emergency or any type of crisis, guilds dedicated their all resources like money, manpower etc. in national interest. Thus these organisations had an important place in overall empowerment of the nation.

Conclusion

It can be concluded that during that period economic organisations which developed on the basis of democracy had played very significant role as controller and promoters of economic sectors. From the beginning these organisations imparted professional education to transform ordinary labour to skilled one, which was important for optimal utilization of the natural resources. The banking facilities helped these organisations to have close association with the people. Sustainable economic development was not possible without such organisations. Social work carried out by these organisations not only fulfilled the requirements of the needy but also helped in developing basic infrastructure. During emergency, their soldiers protected the state and its people from external attacks, thus state expenditure on the arms and ammunition was reduced and these funds were used for development purposes. The golden age of the Gupta period was largely reached due to all these sustained and meticulously planned efforts in social and economic realms.

REFERENCES

1. Gupta, S.P., The Indus-Sarasvati Civilization:Beginnings and Developments, inG.C. Pande (ed.) The Dawn of Indian Civilization (UP TO C. 600 B.C.), Munshiram, Delhi, 1999, p.283–94.
2. Kenoyer, Jonathan Mark, Ancient Cities of the Indus Valley Civilization, Oxford university press, Karachi, 1998, pp. 50, 96-98.
3. Rigveda. VI. 53; Majumdar, R.C., Corporate Life in Ancient India, Calcutta, 1920 (Second Edition), p.11 (discussing the paṇi in the Rig Veda).
4. Panchavimsha Brāhmaṇa, VI.9.25, XVII.1.5.12.
5. Aitaraye Brāhmaṇa, III.30.3; Kaushitaki Brāhmaṇa, XXVIII.6; Taittiriya Brāhmaṇa, III.1,4,10.
6. Jayaram, v., Hinduism & education, www.hinduwebsite.com.
7. Mahābhārata, XII.107.6.
8. Rigveda. VI. 53;
9. Vinayapitaka,Chullavagga, V.5.2, VIII.4.1.
   1. Mahāvagga, I.12; Ashtadhyayi, V.3.114.
   2. Mahābhārata, XII.59.49, XII.138.63, III.238.15.
   3. Uraga jātaka, No. 154.
   4. Arthaśāstra, VII.1, VII.16, IX.2.
   5. Bṛihaspati Smṛti, I.15; Nārad Smṛti, I.7.
   6. Aṣṭādhyāyī, II.1.59- , एकेन शिल्पेन पण्येन वा ये जीवन्ति तेषां समूह: शेणि:। (Aṣṭādhyāyī of Pāṇini, Vasu, S.C. (Ed. & Tr.), Allahabad, 1891-1897, Vols. I, Reprinted by Motilal Banarsidass, 1962.)
   7. NāradSmṛti, I.7.
   8. Nārad Smṛti. III.1.9; Bṛihaspati Smṛti. XIV.1-32.
   9. Epigraphia Indica, Vol. II, p. 110.
   10. Amarkośa, 3.9.78- “पान्थान्‌वहति सार्थवाह:।”
   11. Motichandra, Sarthvaha, Bihar Rastra Bhasa Parisad, Patna, 1953, p. 151.
   12. Epigraphia Indica, Vol. VIII, p. 82.
   13. Fleet, John F., Corpus Inscriptionum Indicarum: Inscriptions of the Early Guptas, Vol. III, Government of India, Central Publications Branch, Calcutta, 1888, pp. 84-88; Majumdar, R.C., Op. Cit., p. 48.
   14. Raghuvansh, 16.3
   15. Mudrārākśasa, pp. 18-20, 28.
   16. Motichandra, op. cit.,  p. 176.
   17. Ibid.
   18. Uppadhayay, Vasudeva, Gupta Abhilekh, Bihari Hindi Granth Academy, Patna, 1974, p. 62.
   19. Fleet, John F., op. Cit., pp. 38-39.
   20. Brihaspati Smṛti, XVII.11-12.
   21. Ibid, XVII.22-23.
   22. Nārad Smṛti, I.7.
   23. Brihaspati Smṛti, I.15.
   24. Arthashastra, IX.11.