STATE IN ANCIENT INDIA
Give an account of economic functions and social
responsibilities of the state in Ancient India
Evaluate the role of the state in the ancient Indian
economy
Short note on Economic functions of the Ancient Indian
state
Shore note on role of state in economic life
Show how the ancient Indian state discharged its functions
and responsibilities
State, in ancient India, had to play an important role in
the administration and safe conduct of socio-economic affairs. The state itself
took part in a number of activities demanding a close watch and control on
sectors like trade, commerce, agriculture, handicrafts and labor problems.
Agriculture has been the chief occupation of India since
early Vedic age. In the Pre Mauryan period agriculture was prescribed as the
normal occupation of the Vaishya or the common man by the authors of the
Dharmashastras. It was the task of the state to adopt a wise policy of
encouragement and support to the cultivators of the soil.
Kautilya’s ‘Arthashastra’ helps us to draw the outlines of
the policy of government encouragement to agriculture. Kautilya gives
references relating to the law of agricultural holding (vastu). The Vastu or
holding of the cultivator is defined as comprising tenements (griha), fields
(kshetra), gardens (arama), embanked reservoirs (setubandha) as well as tanks
(tataka) and other sources of water supply (adhara). The possession of vastu by
the cultivator was safeguarded by a number of penal clauses. Thus, a forcible
occupation of vastu is visited with the thief’s penalty. Robbery accompanied
with violence in respect of fields, tenements and so forth was punished. Even
the act of grazing cattle on another’s field without permission of the owner
was punished with a fine.
From other clauses in the ‘Arthashastra’ we learn that the
cultivators were entitled to the full rights of ownership, including those of
sale, lease and gift over their holdings. Definite procedures were laid down
for the sale of vastu, homestead lands, fields, gardens, irrigation works and
of embanked reservoirs as well as for the lease of tenements, wells, tanks,
rice fields and gardens. The transfers by gift of sale of fields within the
rural area were required to be entered by the gopa in his field register of the
village.
Choice of crop – In the choice of their crops, the
cultivators were usually granted complete freedom. The only exception to this
rule occurred in Kautilya’s program for lease of newly colonized lands to the
cultivators and for raising extra revenue for the King in case of financial
emergency. Neglect of cultivation was punished with cancellation of the lease.
The ‘Samaharta’ (the chief revenue officer) was empowered to raise a second
crop by the compulsory labor of the cultivators.
Encouragement of Agriculture – For the encouragement of
agriculture the state adopted a number of measures. These consisted of the
grant of agricultural loans and revenue remission to the cultivators and the
construction of irrigation works by state agency or with state help. The loans
as well as remissions were required to be entered by the gopa in his census of
resident families of the villages. Revenue remissions were to be granted for
five and three years respectively in favor of one constructing new and
restoration of old or ownerless irrigation works. The interest of the
cultivator was upheld by a clause of law exempting him from arrest for non
payment of debt during the season of cultivation.
Agrarian Policy – According to Kautilya’s ‘Arthashastra’,
the possession of land in the kingdom of Kosala carried with it the right of
its disposal to buyers. The Dharmashastras contain clauses of law relating to
the owners right over his tenants as well as to the lease holder’s obligation to
the owner of the land. The field laborer’s obligations to serve his master was
strictly enforced and a servant abandoning his work in tillage was to be
flogged.
The Jatakas relate to the assignment of lands and villages
by Kings. Such assignments were made in favor of members of the royal family,
of Brahamanas, of officials as well as of private individuals of lower status.
They appear to have been so well known that new technical terms were used to
designate their different varieties. The assignees enjoyed the revenue of
villages granted by the Kings probably in hereditary succession. We come across
a class of ‘gramakhojakas’(village landlords) who exercised administrative and
judicial powers by the king’s grant.
We learn from Kautilya’s ‘Arthashastra’ that the general
policy of state administration was to discourage, if not forbid, the assignment
of lands. There is mention of acquisition of land by members of the royal
family, which were required to be entered by the ‘akshapataladhyaksha’ in his
state register of the kingdom. On the other hand, the whole royal establishment
consisted of members of the King’s family as well as of the civil and military
services who were paid salaries according to their respective grades.
There are references in the ‘Artharshastra’ that some minor
officials and Brahmanas were granted assignments of fields in the newly
colonized rural areas. But the officers enjoyed their assignments without right
of sale or mortgage. The Brahmanas alone were granted permanent rent free
occupation of their holdings. It was also a fact that villages liable to
military service in lieu of revenue were known at that time. the list of such
villages were required to be entered by the ‘samaharta’ in his revenue role of
villages in the kingdom.
Functions of rural officers – Describing the functions of
the rural officers in the reign of Chandragupta Maurya, Megasthenes observes
that they keep rivers improved and the land measured as in Egypt and inspect
the closed canals from which the water is distributed into conducts in order
that all may have an equal share. They collect taxes and superintend the crafts
connected with land – those of woodcutters, carpenters, workers in brass and
miners. From the description of the class of farmers by Megasthenes it appears
that they were not only the most numerous, but the most highly respected class
since they were exempted from military service and that they enjoyed the right
of freedom in their farms.
Gupta Age – During the Gupta Period as well the state
patronized agriculture. A concrete illustration of state care for agriculture
is furnished by the Junagadh Rock Inscription of Emperor Skandagupta belonging
to 445-58 of the Christian era. It records the restoration of the Sadarshana
Lake at Girnar by the local governor of Skandagupta.
Industrial and commercial expansion – The first great age
of industrial and commercial expansion in ancient Indian history can be traced
to the pre Maurya period. The most complete development of the state policy in
the industrial and commercial field during this period can be traced in
Kautilya’s ‘Arthashastra’. A double attitude of the state towards the artisans
and traders is found in his work. Special care was taken for the encouragement
of trade and industry, as they were recognized as state’s greatest assets. A strict
control was maintained over industrial workers as well as over traders for
protection of the public against various malpractices current at that time
among these classes. This was accompanied by an equally strict control of
marketing operation in the public interest.
The state undertook a number of measures for the
encouragement and security of artisans and traders. These included the opening
of trade routes and the foundation of trade marts within the rural area and the
settlement of artisans and dealers at specific sites of the metropolitan city.
The king was directed to protect trade routes against various obstacles and
danger. In the same spirit the ‘navahyaksha’ was required to treat with
fatherly kindness boats that were strayed from their routes or damaged by bad
weather. In particular, he was required to levy the custom duties at half their
usual rates or even to remit them altogether on goods damaged by water. He was
also required to destroy pirate boats. More important were the special laws laid
down for protection of the property of the artisans and traders.
Punishment – The Arthashastra refers to the punishment for
the theft of articles of small and high value belonging to artisans and
traders. A number of police regulations were prescribed for making various
officers personally responsible for the security of the merchants’ goods in
course of transit within their respective jurisdictions. A number of rural
officers such as the village headman, the officer in charge of pastures, the
officer in charge of five or ten villages and the officer empowered to arrest
thieves were required according to the distance to which the stolen articles
have been carried to make good the value of their merchandise they were
deprived of by a theft committed in the night.
The state took appropriate measures to control the artisans
and traders for the purpose of ensuring honest dealings with the public. The
dishonest practices of these classes, it appears, had become so notorious as to
induce the moralists of this age to condemn them to punishment in hell after
death. Kautilya’s measures form the subject matter of a chapter dealing with
the subject of public enemies. A number of administrative regulations were
directed against specific trades and professions branded as comprising men who
are really thieves though passing as honest men. The measures comprised,
firstly, the appointment of special benches of three magistrates (pradeshtas)
for enforcement of law and regulations. Secondly, specification of the terms
and conditions of work of the classes concerned along with penalties for their
violations. Thirdly, fixing the rates of their remuneration and fourthly, an
inquisitorial control over those classes.
There are references in Kautilya’s ‘Arthashastra’ regarding
the state control over marketing operations. There were entrusted partly to the
‘sulkadhyaksha’ (officer in charge of the city custom house) and partly to the
officer called pandyadhyaksha (officer in charge of merchandise) and samstahadyaksha
(officer charged with control of stocks of dealers).
The ‘sulkadhyaksha’ had to collect custom duty on imported
merchandise within the city limits and to arrange for its public sale at a
fixed price. The ‘sulka’ had to be paid sometimes in cash and sometimes in kind
according to the local usage. The rules in the Smrities suggest that the
payment was usually in kind. Sometimes we come across inscriptions stating the
actual quality of ghee, oil, cotton, betel leaves, etc., that was collected as
customs duties in different places. Cash collections also were not unknown and
they must have been usual in the case of imports of gold, silver and jewels.
Custom duties – Custom duties varied according to the
commodities as in modern times. Manu recommends a 16% duty on fuel, meat, honey,
ghee, scents, medicines, flowers, vegetables, earthen pots and leather goods.
The ‘Arthashastra’ however, recommends a lighter tariff of four to five percent
on medicines, fuel, leather goods and earthen pots. However, wines and silken
pieces were charged a higher duty varying from 6 ½ to 10 %. It is clear that
the tariff derived from province to province and age to age according to the
needs of policy of different governments. Kautilya recommends that commodities
intended for religious ceremonies and sanskaras like sacrifices, marriages,
etc., as also presents given to the bride, should be exempted from the custom
duties.
Ferry tax and shop tax – Along with eh customs duty, the
ferry tax had to be paid for passengers, goods, cattle and carts. Besides some
states used to test and stamp weights and measures and charge a small fee for
the same. A shop tax is referred to in inscriptions. The 10% tax on sale
proceeds referred to by Megasthenes is unknown to the ‘Arthashastra’ or the
Smrities. Most probably the Greek ambassador confounded the customs dues with
the sales tax.
The ‘panyadhyaksha’ was charged with the double function of
controlling the home market for consumption of indigenous and imported goods
and exploring the foreign market for pushing the sale of indigenous
merchandise. In so far the home market was concerned this policy was designed
to protect the public against unfair dealings by traders, while allowing the
latter specific concessions. As for the foreign market the ‘panyadhaksha’ was
expected to offer friendly advice and warning to the merchants engaged in
export trade.
The ‘Samsthdhyakshas’ functions described appropriately
enough under the caption ‘suppression of public enemies’ (literally,
eradication of thorns from rural and urban areas) related principally to the
protection of the public against the various malpractices of dealers.
The state collected various taxes and dues from the
industry. As far as petty artisans like smiths and carpenters were concerned,
it appears that they were usually required to work one or two days a month for
the state. The central government usually transferred the right to receive the
labor tax to the local bodies which could utilize it in carrying out their
schemes of works of public utility. Inscriptions refer to this tax as
‘karukara’, the tax on artisans.
Trade in wine – Trade in wine was under strict state control.
It was manufactured partly in state distilleries and partly by private agency.
The wine prepared by the latter had to pay an excise duty of 5%.
Mines – All mines were regarded as state property. Some of
them were worked by the government, but others were often leased out as well.
When such was a case, the lease had to pay a heavy excise duty. According to
Sukra it was to be a 50% in the case of gold and diamonds, 33 ½ in the case of
silver and copper and 16-25% in the case of other metals.
Salt – Excise duty was levied on salt. Salt deposits could
be worked only by the state or its licensees. Copper plate grants donating
villages usually invest the donee with the right to dig for salt and metals
without the payment of any fee.
Calamities – Apart from the usual taxation, the state was
naturally empowered to levy extra cesses to meet unforeseen calamities, or to
finance costly works of public utility, or to carry out its plans of ambitious
expansion. The Arthashastra describes these extra contributions as ‘prayanas’
or benevolences and lays down that the farmers may be called upon to pay about
25 and merchants from 5 to 50 % according to their circumstances.
According to the description of Megasthenese, the
‘astynomoi’ (the city commissioner or the magistrates in charge of cities) in
the time of Chandragupta Maurya were divided into seven boards of which three
are mentioned here.
The first board had to look after arts and handicrafts, the
fourth board was in charge of sales and barter and had to look after ‘measures
and the fruits of the season’ so that the latter might be sold by stamp. The fifth
board had the charge of the work done by artisans. According to the parallel
account of Kautilya we find that the control of artisans and traders in urban
as well as in rural areas by means of elaborate laws and regulations was
entrusted to benches of three ‘pradeshtas’ for the purpose of protection of the
public against the malpractices of the artisans and traders.
Promotion of trade: The state took keen interest in
promoting trade. The first known reference in the ancient history of India to
the construction and maintenance of trade routes by the state is found in
Kautilya’s ‘Arthashastra’. The trade routes were looked upon as an asset of the
state. It is said that the possession of land and water routes counted among
the characteristics of a good ‘janapada’. Kautilya mentions about a few
concrete steps to be taken by the state in pursuance of this aim. The construction
and security of trade routes was associated with the foundation of villages in
Kautilya’s program of development of the wastelands. In another place Kautilya
mentions about the foreign policy aimed at the possession of trade routes. By the
time of Chandragupta Maurya, as we learn from Megasthenes, a great royal road
had been built for linking Pushkaravati, beyond the Indus river, with Pataliputra
the imperial capital. The Mauryan rulers took extreme care for the improvement of
transport and communication. From the observation of Megasthenes we learn that
the rural officials were required to mark roads with pillars at every ten
stadia to show the distances.
Loans – One aspect of development of economy during the
pre-Mauryan age is the extensive use of agricultural, industrial and commercial
loans to which the records of this period bear witness. This led for the first
time in India’s history to state regulations for fixing the legal rate of
interest in general and on a graduated scale. The legal rate was made
sufficiently elastic to allow the increase of the prescribed rate or rates upto
a fixed limit.
Capitalistic system: The capitalistic system of production was
a well established institution during ancient times together with the age old domestic
system.
Agricultural Production Standard: The standard of
agricultural production was fully developed in the working of the state farms
of which we have a detailed description in Kautilya’s ‘Arthashastra’. We may
trace this development firstly, in the technical qualification of the controlling
staff, secondly, in the larger provision for agricultural labor and the
appliances of cultivation, thirdly, in the application of the most advanced
scientific agriculture of the time for sowing the seeds, fourthly, in the precise
rules for the payment of wages of the laborers and lastly in the precise terms
of the share of the crops allowed to the lease holders.
Domestication of animals: The first complete description of
the state rearing of domestic animals is given by Kautilya. Draught animals
were required for providing transport for civil and military purposes. In the
layout of the metropolitan cities sites were set apart for stabling the cattle,
horses, asses and camels belonging to the royal establishment. Two separate ‘adhyakshas’,
functioned for the management of state herds. These were by ‘goadhyksha’, who
was in charge not only of the cattle but also of camels, asses, goats and sheep
belonging to the category of the state herds. The other was the ‘asradhyaksha’
who was in charge of the horses and mules.
Forests: Forests formed another important source of the
state income. Kautilya includes forests as a separate item in his classification
of sources of revenue. The economic products of the forest consisted according
to Kautilya’s enumeration of the sub-types called the group producing hard
wood, the bamboo group, the plant group, the group which produces ropemaking,
paper manufacturing, dyeing materials and medicinal substances, the group which
provides poisons, the remains of dead animals, base materials, bamboo and
earthen ware.
Mines and minerals: Kautilya gives a vivid description of
the state working of mines and minerals. A high officer in charge of mines
(akardhyaksha) was entrusted with the overall control and supervision of all
the relevant operations from start to finish, while other ‘adhyakshas’ with
technical titles were required to deal with different branches of the mining industry
and trade in minerals. The ‘akaradhyakha’ and his staff were required to have
expert knowledge of the metallurgical sciences. They were entrusted with the discovery
of disused mines. While the costly mines were leased out on a share or royalty
basis, the rest were directly worked under his supervision according to the
best technical process known at that time. The ‘akardhyaksha’ had to set up
workshops for carrying out smelting and other operations according to the
elaborate techniques described by Kautilya. Thereafter he had to arrange for marketing
of the finished goods under strict official control. Living by the manufactured
products with a state license was punished with compulsory labor at mines. Theft
of mineral products was punished with eight times the value of the stolen
article that of jewels being punished with death.
Textile Industry: The primary objective of the state
textile factories was to produce fabrics for the needs of the civil and
military administration. Rules for the working of the factories are laid down
in the ‘Arthashastra’. Skilled male as well as female labor was employed for
the operations of spinning and weaving. A special officer called ‘sutradhyaksha’
was incharge not only of spinning but also of the weaving operations.
Sale of state merchandise: The first known state trading,
as of the state industries in ancient India occurs in Kautilya’s ‘Arthashastra’.
According to Kautilya’s description the ‘panyadhyaksha’ (officer incharge of merchandise)
had the task of promoting the sale of the state merchandise to the best
advantage of home and abroad. He was to have a thorough knowledge of current market
conditions. In so far as the home market is concerned he was required to
collect the merchandise in excess of supply at one place for realization of its
proper price and later to lower the price.
Marketing: Marketing of state merchandise of local
manufacture was centralized. The state merchandise was to be sold at a fixed
price to licensed dealers who were to be fined for lowering the price apparently
for the purpose of attracting a larger number of customers. As regards foreign market,
the ‘panyadhayaksha’ was to consider the differences in price levels of the
local and the imported merchandise and to make a series of calculations for
estimating the margin of profit likely to accure from the sale.
Weights and balances: There was an elaborate system of
weights of balances, liquid and linear measures and measures of time. attempts
were made to a standardization in the advanced state of administration of time.
a state factory was set up for the manufacture of weights and measures and a
special officer called the pautavadhaksha’ was placed in charge of the same. The
weights were to be manufactured out of iron, or stone belonging to a particular
locality, or of wood of a particular texture, while wooden vessels of a
particular design and material were to be prepared for liquid measures. The inspection
of weights and measures was to be carried by the ‘pauravadhyaksha’ every four
months. A series of balances was manufactured so as to give a maximum advantage
to the state in the collection of its dues.
Regulation of Coinage: The first clear account of state
regulation of coinage occurs in Kautilya’s ‘Arthashastra’. According to
Kautilya, the coins were struck by state authority. The work was entrusted to a
special officer called ‘Lakshanadhyaksha’. Both silver and copper coins were
issued. The silver coins were known as ‘ruparupya’ and copper coins were known
as ‘tamrarupys’. Reference is made in another context to the manufacture of gold
as well as silver coins, named respectively as ‘suvarnas’ and ‘dharanas’. The mint
regulations were sufficiently precise.