The economy of Deccan was predominantly agrarian. Agriculture formed the backbone of these regions. The coastal areas benefited from abundant rainfall. In contrast, tank irrigation was vital in the Andhra region. Canal systems also supported agriculture, particularly in Ahmednagar.
Land Ownership and Tenancy
Peasants were often landowners in South India. Scholars like Burton Stein and Sanjay Subramanyam raised questions about this ownership model. They noted that peasants had the right to sell land, indicating a form of proprietorship. However, a distinction existed between ownership of land and ownership of fiscal rights. Communal land holdings were also prevalent.
Land Tax Systems
Land tax was a primary revenue source for states. The Vijayanagar system continued to influence revenue collection. Tax demands varied by region. In Golkonda, the state collected one-twelfth of the produce. Cash payments were preferred for tax collection. The Malabar region was unique, as it had little to no land tax, relying instead on customs dues and janman holdings.
Types of Land
Three main categories of land existed:
- Crown Land: Known as bhanjavand in South India, muamnh in Bijapur, and khalsa in Golkonda.
- Noble Grants: These lands were given to nobles and subordinates, called inam in the South and moqnsu in the Deccan.
- Revenue-Free Grants: Known as mnnyn in the South and inam in the Deccan.
Revenue Collection Methods
Revenue farming was a common practice. The right to collect taxes was auctioned to the highest bidder. Revenue farmers paid a fixed sum to the state and collected from peasants as they wished. Local revenue collection machinery remained intact under Deccani rulers.
Revenue Officials
Various officials managed revenue collection. Tax officials for crown land were called havaldar. At the pargana level, desai and deshmukh operated. Accountants were known as deshkulakshmi and deshpande. Other village officials included muqaddam, patel, and kulkami. They received a share of the revenue, varying by state.
Governance and Revenue Sources
In coastal areas, separate governors (sar-sarnantu) managed local affairs. They paid fixed sums, similar to revenue farmers. The state’s focus was on regular revenue collection rather than peasant welfare. Besides land tax, states collected revenue from tributes, war booty, and customs.
Bijapur and Golkonda Revenue
Bijapur rulers earned income from jizya, a tax on non-Muslims. They also imposed a licence fee for private minting of coins. Golkonda rulers profited from diamond mines. Trade guilds held the right to collect taxes, paying fixed sums and appointing their own officials.
Role of Merchants
The 16th to 17th centuries saw the rise of portfolio capitalists. Initially, it was believed that merchants lacked political power. Recent arguments suggest that revenue farmers, especially palaiyakkars, contributed to economic development. They engaged in agricultural trading, irrigation, and banking.
Diverse Merchant Communities
Numerous merchant communities thrived during this period. Armenians, Portuguese, Telugu Balija Naiyudus, Chettis, Komatis, Arabs, and Gujaratis played roles. Internal trade was largely controlled by Muslim Mapillas.
Regional Economic Dynamics
On the Kanara Coast, Hindu and Jaina chiefs benefited most from trade. The Coromandel Coast saw Arab and Marakkarar converts dominate trade. Some scholars argue that the South Indian economy did not decline in the 16th century. They claim that nayaks stimulated economic activity by establishing markets and towns.
Impact of Warfare
Constant warfare was a common theme in South India. However, some scholars argue that this was not a new phenomenon. They contend that warfare existed in earlier centuries too. The impact of war on the economy is debated among historians.
Important Figures
- Burton Stein: Historian known for his work on South Indian agrarian systems.
- Sanjay Subramanyam: Scholar who has contributed to understanding trade and economy in India.
Geographical Context
The Deccan plateau and South India encompass diverse landscapes. This geographical diversity influenced agricultural practices. The region’s climate varied, impacting crop production and irrigation methods.
Historical Context
The agrarian relations of South India evolved over centuries. The influence of various dynasties shaped land tenure systems. About this historical context is essential for comprehending contemporary agrarian issues.
Contemporary Relevance
The legacy of these agrarian relations continues to affect current agricultural policies. Issues of land ownership and tenancy remain relevant . from historical practices can inform modern agricultural reforms.

