Discuss, with examples, the significance of monetary transactions during the period under consideration.
(i)The political stability provided by the Mughal helped in establishing hoarsening trade relation with Ming (china), Safavid (Iran) and Ottoman (Turkey) empires. It led to increase in outland trade from China to the Mediterranean Sea.
(ii)The Discovery of new lands and sea routes also gave an impetus to Asia’s trade with Europe. As a result enormous amount of silver entered India as payment for goods bought from India.
(iii)Jovanni Karari, an Italian traveller, who passed through India in 1690 has written how the silver reached India from all parts of the world. From his description, we also came to know how there was an exchange of cash and goods in India in the 17th century.
(iv)This benefitted India as she did not have enough resources of silver. Therefore, from the sixteenth to the eighteeth centuries there was sufficient reserves of silver in India and the silver rupya was available readily.
(v)The mutual exchange in villages took place. As villagers established their links in the urban markets, there was a considerable increase in monetary transactions. In this way, villages became an important part of the monetary market.
(vi)It was due to the monetary transactions, became easier to pay daily wages to the labourers in cash and not in kind. This resulted in an unprecedented expansion in the minting of coins and circulation of money allowing the Mughal state to extract taxes and revenues in cash.
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