Question

How did the Vijayanagara rulers support economic and trade activities ? Explain with examples.

Hint:

The Vijayanagara economic model was built on a simple balance: agricultural surplus driven by state canals supported international markets, which secured the horse imports needed to maintain military power.

Answer 1

Concept: The economic wealth of the Vijayanagara Empire relied on a combination of productive agriculture and bustling commercial markets. The rulers pursued deliberate policies to encourage local manufacturing, build transport infrastructure, protect trade routes, and attract foreign merchants, making the capital city an international center of wealth. The state supported economic and trade activities through several key initiatives:

• Agricultural Infrastructure and Irrigation Investment: The state recognized that agricultural surplus was essential for urban trade. Because the region around the capital was semi-arid, rulers built major water management projects. They constructed the massive **Kamalapuram Tank** and the **Hiriya Canal**, which drew water from the Tungabhadra River to irrigate the fertile valley. These projects boosted the production of cash crops like sugarcane, cotton, and rice, providing raw materials for local industries and trade. ```
• Encouraging Foreign Trade and Importing Strategic Goods: The rulers maintained trade links with overseas markets, including Persia, Arabia, China, and Europe (the Portuguese). They set up specialized markets to import strategic military assets, particularly high-quality **Arabian horses**, which were essential for the imperial cavalry. King Krishnadeva Raya maintained close diplomatic relations with Portuguese traders like Domingo Paes and Duarte Barbosa, granting them commercial privileges and port access along the western coast in exchange for an exclusive monopoly on horse imports.
• Establishing Regulated Urban Markets (\textit{Bazaars}): The capital city was planned around lively, organized commercial streets located next to major temple complexes. Foreign travelers noted that the **Hampi Bazaars** were filled with an array of goods, including Chinese silks, precious gemstones, pearls, spices, and foodstuffs. The state provided security for these markets, regulated weights and measures, and collected structured commercial taxes (\textit{shulka}), which generated significant revenue for the treasury.
• Patronage of Local Merchant Guilds and Artisans: The state provided legal protection and social status to local merchant communities, such as the \textit{Chettis} and the \textit{Kudra Chettis} (horse dealers), alongside artisan guilds like weavers and metalworkers. By lowering transit duties and allowing these guilds a degree of self-regulation, the state encouraged internal trade networks that linked rural production centers directly with major urban markets. ```