India and Ming China's Economy

1. Mughal India

   
   

   Pre-colonial:

   
   

   Before the British came to power, India had maintained a self-sufficient agriculture. The empire was able to produce and consume within its borders. Also, the country had managed balanced trade, which means the export was greater than the imports and thus India gaining from trade with other countries. Items imported into India were pearls, wool, dates, dried fruits, and rosewater from the Persian gulf; coffee, gold, drugs, and honey from Arabia; tea, sugar, and silk from China; gold, musk, and woolen clothes, metals like copper, iron, and lead, and paper from Europe. Items exported from India were cotton textiles. Beside cotton textiles, which wre famous all over the world, India also exported raw silk, indigo, opium, rice, wheat, sugar, pepper, and other spices, precious stones, and drugs. Handicraft industries were one of the major sectors of the economy and it was widely practiced.

   
   

   During British Rule:

   
   

   Under the British rule, India’s economy faced some changes. One of the most important changes was the commercialization of agriculture. Opposed to the previous self-sufficient agriculture, now the Mughal agricultural industry focused on cash crops. Also, India became an importer of cotton. This ruined the economy as India used to earn profit from selling cotton to foreign markets. However, there were some improvements in the economy that took place during the British rule. The improvements are: 1) building of the railroads, 2) establishing telegraphs in the country which contributed to the immense improvements in communication, and 3) impose of legal system that stabilized the society with society-wide laws.

   
   

   
   

   
   

   Ming China

   Ming Dynasty is one of the three golden ages of China. During the Ming period, the economy had improved in technology, agriculture, trade, and manufacturing. Also, during the Ming reign, Chinese economy was showing signs of early form of capitalism.

   
   

   Agriculture

   
   

   Ming farmers used crop rotation methods and powered plowing with water, both with improved agricultural output. Such affluence set tones for early form of capitalism in China. Tea and fruit orchards grew in particular regions where soil fertility was high.

   
   

   Agricultural Influences on the Ming Economy

   
   

   The new economy made farmers able to cultivate massive land for cash crops. Such cash crops were important because of the rising population and decreasing land fertility. However, advancements in tools, carts, and water-powered plowing equipments helped with raising cash crops.

   3 Types of markets in Ming Dynasty: rural market, urban-rural market, and national market.

   
   

   Manufacturing

   
   

   Manufacturing in Ming China became more improved and productive with variety of goods, compared to the Song Dynasty that preceded the Ming. Iron was produced at the most efficient rate in the history. Many industries, such as tea and salt, were privatized and propelled by powerful merchants.

   Ming Dynasty abolished forced labor and adopted wages for workers in manufacturing industries.

   
   

   Commerce and Trade

   Ming Dynasty also is marked with flourishes of trade, commerce, and investment due to its liberalized economy. Ming built canals for irrigation, bridges, and roads. Ming could trade with faraway markets, such as Japan and Europe.

   
   

   Comparisons:

   1.       Large portion of agriculture in the domestic industries.

   2.     Vast land = huge domestic market unlike small nation-states of Europe.

   3.     Use of currency, coins.

   

   Mughal's coin

   
   

   

   
   

   Ming China's coin

   
   

   
   

   
   

   4.     Active trades with other countries.

   5.     Open to trade with Europeans.

   A.    Qing China opposed the trend of Ming’s outward economy, and adopted anti-merchant strategy.

   
   

   Silver Trade – China traded its good such as silk porcelain and tea with silver from the Europeans. Silver was important material for the Chinese because it was used as a medium of exchange. Thus the silver trade is the beginning of Chinese modern economic structure.

   Problem with Silver Trade- The Chinese monetary system was based on the assumption that the amount of silver coming in to the country is constant. But when number of extra silver from the foreign country increased, Chinese economic system could not managed the extreme imbalance in the exchange rate and experienced huge economic crisis in the 1500s. 

   
   

   Contrasts:

   1.       Vast majority of Mughal Empire’s manufacturing started with the British colonial rule, while China had its own form of manufacturing even before Ming dynasty.

   
   

   2.     Exported and imported different goods:

   A.    items exported from India were cotton textiles. Besides cotton textiles which were famous all over the world, India also exported raw silk, indigo, opium, rice, wheat, sugar, pepper and other spices, precious stones and drugs

   B.     items imported into India were pearls,wool, dates, dried fruits and rosewater from the Persian gulf; coffee, gold, drugs and honey from Arabia; tea,sugar and silk from China; gold, musk and woollen cloth; metals like copper, iron and lead, and paper from Europe.

   
   

   C.     China exported tea, sugar, and silk, and imported opium, metals, and European luxuries.

   
   

   3.     In India, handicraft industries were widely spread and flourishing.

   
   

   4.     In China, iron was made at the highest speed in history, tea and salt manufacturing were privatized.

   
   

   5.     In Mughal Empire, paper money was introduced much later, in around late 1700s. While in Ming China, paper money and bank notes were widely utilized.