Economy in Sultanate Times: Growth and Extraction

• Nature: A period of high centralization of revenue resources coupled with a significant expansion of urban crafts and trade.
• Key Feature: The shift from multi-layered feudal extractions to a direct state-mediated Iqta system.

1. Agriculture and Technology

• Irrigation: Widespread use of the Araghatta (Persian Wheel) and the construction of massive canals, particularly by Ghiyasuddin Tughlaq (pioneer) and Firoz Shah Tughlaq (zenith).
• New Industries: Introduction of Sericulture (silk production) and Paper-making technology from the Islamic heartlands.
• Crafts: Use of the Spinning Wheel (Charkha) revolutionized textile production, making India a major exporter of cotton fabrics.

2. Revenue and Administration

• Kharaj: Land revenue was the mainstay, ranging from 1/3rd to 1/2 of the produce, often collected in cash to facilitate monetization.
• Rural Intermediaries: The state depended on village headmen like Khots, Muqaddams, and Chaudhuris, who often occupied a privileged position and were targeted by Alauddin Khalji's reforms.
• Internal Taxes: Taxes on houses (Ghari) and cattle (Charai) were added by the Khaljis but later abolished by Firoz Shah Tughlaq.

3. Monetization and Trade

• Currency: Iltutmish introduced the Silver Tanka and the Copper Jital, establishing a standardized tri-metallic currency system.
• Internal Trade: Facilitated by the Banjara grain merchants who moved supplies to the frontiers and major towns.
• Urban Growth: The creation of new administrative centers led to a 'second urbanization' in the North, with Delhi becoming one of the largest cities in the world.

4. Top UPSC Traps (Caution)

1. Iqta vs Land: An Iqta was a right to revenue collection, not ownership of land; Iqtadars were frequently transferred to prevent them from becoming local potentates.
2. Slavery: Under Firoz Shah Tughlaq, slavery became an economic institution with a separate department (Diwan-i-Bandagan) managing 1,80,000 slaves used in crafts and the army.
3. Market Reforms: Alauddin Khalji's price control was restricted to Delhi and nearby heartlands; it was not a pan-India socialist model but a military necessity to maintain a large army.