Economics of the Chola Kingdom

The economy of any country is very intricately linked with its history. India is a country of great cultural and historical heritage and was regarded as the “sone ki chidiya” (i.e. bird of gold) in ancient times because of the immense prosperity of its kingdoms and citizens. But have you ever wondered how monarchical forms of government were successful in creating prosperous kingdoms? How was wealth handled in those times? And how was the economy of kingdoms regulated?

Let us delve on all these questions by looking at the economy and administration of one of the world’s longest-ruling dynasties, The Chola Dynasty, whose rule was onsidered to be the “Golden Age of South India”.

The Chola Dynasty ruled over South India in the fertile valley of the Kaveri river. Their ruling period can be traced from as before as 300 BCE to 1279 CE and they were at the height of their power from the later half of the 9th century till the beginning of the 13th century (known as the Imperial Chola Dynasty). In the age of the Cholas, the whole of South India was for the first time brought under a single government. Rajaraja Chola I and Rajendra Chola I were the greatest rulers of the Chola dynasty, extending it beyond the traditional limits of a Tamil kingdom. At its peak, the Chola Empire stretched from the island of Sri Lanka in the south to the Godavari-Krishna river basin in the north, up to the Konkan coast in Bhatkal, the entire Malabar Coast (the Chea country) in addition to Lakshadweep and Maldives.

But what made this period the Golden Age was not just the territory under control, but the spurt of socio-economic and cultural activities, revolutions in policies and governance and overall progress of the kingdom.

One of the major policy decisions of Rajaraja Chola I that was unique to the Chola kingdom and led to improved administration was the self-reliance of even the smallest of villages and governing units.

Rajaraja Chola I in his reign initiated a massive project of land survey and assessment leading to a reorganisation of the entire empire into smaller units. At the local government level, every village was a self-governing unit. A number of villages constituted a larger entity known as a kurram and several kurrams constituted a valanadu. The government at this time had a large land revenue department, consisting of several tiers, which was largely concerned with maintaining accounts.

Before his reign the Chola territory was ruled by hereditary lords and local princes who were in a loose alliance with the rulers. Since then, until 1133 CE when the Chola power was at its zenith, these hereditary lords virtually vanished from the records and were either replaced or turned into dependent officials which prevented the feudatory chiefs from interfering in the village economy and land system. The Chola kings were then able to exercise a closer control over the different parts of the empire hence paving ways for a much efficient administration. The villages enjoyed pure autonomy and were completely self-sufficient which led to economic self-reliance.

Flourishing trade and the growth of traders are the distinguishing features of that era but even then agriculture was the principal occupation and the farmers occupied one of the highest positions in society. And as we all know the prosperity of any agricultural country depends to a large extent on the facilities provided for irrigation, catering to which there was tremendous agrarian expansion during the rule of the imperial Chola Dynasty. From sinking wells and excavating tanks to mighty stone dams across the Kaveri and other rivers were made. Channels were cut out to distribute water over large tracts of land. Rajendra Chola built a huge tank named Solagangam in his capital city Gangaikonda Solapuram and was described as ‘the liquid pillar of victory’ (on his victory over the Pala dynasty of Bengal). Another very large lake of this period, which even today is an important source of irrigation is the Viranameri Lake near Kattumannarkoil in South Arcot district founded by Parantaka Chola.

Along with an efficient water irrigation system Chola kings also spent huge sums of money and gave lands for the building and maintaining hospitals. Now let’s delve deep into what is one of the main reasons for the growth and flourishing of any economy i.e. ‘trade’. As the Chola Empire was a thalassocratic empire, trade was not limited to just the nearby kingdoms. The Cholas did extremely well in foreign trade and maritime activities. The manufacturers of the kingdom also produced goods for export to foreign countries. Textiles of high quality, metals, pottery were manufactured to sell overseas. Spices, precious stones, pearls, ivory were also exported.

Since the Chola kingdom was located in South India it had greater access to the sea and was the center for sea trade. It had trade relations with many Asian and European countries. The main trading partners were the Tang dynasty of China, the Srivijaya Empire in the Malayan archipelago and the Abbasid Kalifat at Baghdad. Ports of Mahabalipuram, Shaliyur, Kaveripattanam, were well known for dealings with China. South India also became influential in facilitating sea trade between Asia and Europe and many industries started producing exclusively for export purposes (the present term for which is EOU i.e. Export Oriented Units).

With growing trade, merchants became more and more powerful. The merchant guilds were an important part of the industry and were centered mainly in the towns and they formed a vital part of the economy. The state would assist them in negotiations with a foreign country if they faced difficulty. However, there was no direct interference by the state in the functioning of the guilds. They exercised a tremendous influence on the economy and were instrumental in maintaining a healthy economy. Due to these guilds, the monetary system had spread its wings and the use of gold and copper coins became common.

Trade tax and land revenue were the main sources of income for the king. There were two kinds of tenancy practiced in the Chola Kingdom. In almost all villages the distinction between persons paying the land-tax and those who did not was clearly established. The former directly used to remit a variable annual revenue to the state and the latter paid dues of a more or less fixed character to the public institutions like temples to which they were assigned.

The construction of temples is another characteristic feature of the Chola kings. Building temples received great impetus from the conquests and the genius of Rajaraja Chola and his son Rajendra Chola. The maturity and grandeur to which the Chola architecture had evolved found expression in the two temples: Brihadeshwar temple of Thanjavur and Gangaikondacholapuram.

The magnificent Shiva temple of Thanjavur, completed around 1010, is a fitting memorial to the material achievements of Rajaraja. It is the largest and tallest of all Indian temples of its time, the apex of South Indian architecture. While the temples of Gangaikondacholisvaram at Gangaikondacholapuram, the creation of Rajendra Chola, was intended to excel its predecessor.

Brihadeshwar Temple, Thanjavur Gangaikonda Cholapuram But during the Chola rule, what made these temples unique and extremely prosperous was the fact that these temples were not mere religious institutions but the center of the entire kingdom’s economy! Intriguing much? Let us look into the reason behind this.

As urbanisation in those times completely depended on trade, it was extremely important to keep it thriving. And that became the one reason how despite there was continuous rise and fall of dynasties, merchant guilds continued to become more and more powerful.

Now the governance policy that the Chola kingdom adapted here is what makes them stand out. Local councils would collect taxes for the central administration, and possessed authority over reinvesting some of the wealth collected. Each assembly was responsible not only for law and order, irrigation, and the stewardship of land under its jurisdiction, but also for running the local temple.

Temples became a prominent place. They served as headquarters for the local assemblies, as cultural and entertainment centres, and as providers of jobs and capital. Everyone from shepherds and gardeners, to sculptors and bronze-workers, to priests and dancing-girls, would find profit here. The construction of a temple, therefore, led to spreading wealth and prosperity.

This administrative view however took decades and centuries to come to a head. First merchants emerged, then cities, then a widely-accepted temple-building culture along with the wealth needed to build a temple. And all this culminated roughly when the Chola dynasty emerged, and the factors which categorised an Indian Golden Age once again aligned. The economy of the Cholas became an example for all the subsequent administration setups.

The Chola administration reached a “golden mean” between local self-governance and centralisation. The king would be responsible for foreign affairs, military matters, and monumental works while the local assemblies handled day-to-day administration, public goods, and tax collection. The Chola were hence successful in introducing a novelty in the state economy and administration as a whole. A perfect blend and fine balance of good governing policies and their proper execution keeping everyone together are what makes the Chola period one of the best when it comes to talking about the history of the Indian economy.

-Nehal Nenawati