Feudal Economy During the Rise of regional kingdoms in North India
What is a feudal economy?
An economy can be called feudal if a major section of the surplus production From land is appropriated by a particular section of people who claim it as a hereditary right, even though they do not participate in the production process in any way.
Rise of self-sufficient village economies:
A very important development of the period was the rise of a self-sufficient village economy where production approximated local requirements, with little attempt to produce as a surplus to be used specifically for trade or exchange. this existing system led to accepting the standard of minimum production since the incentive to improve production was absent. so as the pressure on the peasantry increased, production stayed at a subsistence level only.
The decline of trade:
The subsistence economy of the village naturally led to a decline in trade, since there was little surplus production that could be traded or exchanged. trade was further hampered by the emergence of a wide range of local weights and measures, making long-distance trade more difficult. lack of trade leads to a decrease in the use of coins, and this decrease, in turn, led to a further decline in trade. the unstable political conditions and the ceaseless internal fighting in India only helped this process to decline the trade. there was also an important external development that contributed to this decline. the decline of the Roman and Sassanid Empires caused a setback to the external demand for Indian goods in the west.
The decline of towns and cities:
This decline in trade affected the growth of towns. those had that attained a certain economic Momentum continued, But the founding of new towns was less frequent than before. but in the coastal areas of South India and Bengal, that sounds prospered because they continue to trade with Southeast Asia.
Effects of feudalism:
The possibilities of multiplying sub feudatories at various stages in the feudal structure led to a wider diffusion of the income from the land. this weakened the position of those at both ends of the scale, that is, the cultivator and the king who suffered from the diversion of the income into the hands of the intermediaries. So the only prosperous class in North India during this period seems to be the feudal lords. But the surplus wealth of these feudatories was not invested in craft or trade. it was instead used for conspicuous consumption. The palatial homes of the feudatories were richly ornamented, and much of the income was spent in building magnificent temples. these temples directed Invaders as they accumulated a lot of wealth.