ECONOMY

ECONOMY

During the early part of this period the village was economically self-suffici~nt and the tendency to hoard wealth was not a characteristic. The village provided its own food and clothing and had enough craftsmen to
attend to its needs. No large-scale surplus was produced and therefore no exchange of any appreciable amount took place with other areas. This changed with the rapid devel­opment of towns from the eleventh century onwards, consequent to the rapid expansion of trade during the Chola period. The existence of towns demanded a surplus pro­duction of food and introduced a morletary system to the rural economy. There is a marked increase in the number of Chola coins at this time as compared to the earlier times.

Overseas trade was the strength of the Chola mer­chants. Mahabalipuram, Kaveripattanam, Shaliyur, and Korkai on the east coast and Quilon on the Malabar coast had elaborate establishments controlling the South Indian trade both westwards and eastwards. Persia and Arabia were the destinations of those trading with the West. Trade with China reached an unprecedented volume during these centuries. Trade was controlled by merchant guilds. The king and the higher officials of state invested in the guilds.