state

1. State and Trade: Rules and
Regulations
1. The Role of state in the sphere of industry
and trade was as important as in the social
and economic life
2. Trade involve the foundation of markets,
demand condition in the market, domestic
and foreign facilities, Restriction on trade
etc.
3. Success of trade also depends on the
distribution and adoptability of the org. to
the changing requirement of trade

2. 4. Condition of domestic and foreign markets
continually change
5. Difference in language, customs, habits,
geographical situations, general economic
conditions and political situation influence
the trade set up between the two countries
6. In ancient India manufacturers did not
engage themselves in exporting goods
rather they sold articles to the trader
7. Organised production and quick
distribution required an efficient system of
financing

3. 8. There arose a class of Sresthins who
controlled the financing of trade on
individual as well as partnership basis
9. Sresthins working as joint stock company
contributed to business both with money
and commodities
10.The trade and craft guilds also arose out of
the necessity of financing trades and
industry
11.These guilds (Sreni) acted as custodians of
commercial conventions and customs

4. 12.Guilds acted as Modern banks and
received deposits of public money on
regular interest and let out money to the
people
13.Guilds also undertook studies of foreign
markets, sent out trade delegates and
carried trade publicity abroad
14.Sresthis acted or nominated arbitrators
or valuers of settlement of trade disputes
or difference arising in export
transactions

5. 15.Kautilya provides ‘Panyadhyaksa’ who
fixed the prices of the various
commodities after taking into
consideration such factors as investment
of capital, interest charges, duties paid,
rent and so on
16.He also arranged the export of state goods
to foreign land
17.He took into consideration all factors such
as expenses of the journey, duties to be
paid, prevailling prices in different places
and so on

6. 18.They also supervise the importation of row
material
19.Kautilya provided Directors or export
officers for every branch of production to
maintain quality
20.Produce of the mines should be turned into
articles of use in the respective workshops
or factories
21.Employees were under strict state control
22.India was far ahead in comparison with
other countries of those time in raw
materials, its quantity and quality

7. 23.Foreign visitors always praised the skill,
swiftness and delicacy of her artisans
24.Kautilya centuries ago provided the
Sansthadhyaksa, (Superintendent of
markets)
25.Whose work was to look after the
customers interest
26.It was his duty to see the second had
goods sold in the market were not stolen
property

8. State Control on Trade:
1. Santiparva calls upon the king to guard his
Kosh, since king depend upon Kosha and
which leads to the welfare of the state
2. There were various references that king
became mindful of his duty to protect
trade and traders in his country
3. Bodhayana says that the king should lay
just duties on marketable goods according
to their intrinsic value without oppressing
the traders

9. 4. Narada warns Yudhisthara that he should
realise only such dues as prescribed in
the Canon and no arbitrary dues are be to
be realised from foreign merchants
5. Security, protection and messengers
should be provided to foreign merchants
6. Manu says that having well considered
the rates of purchase and of sale, the
length of road, the expense for food, the
charges of securing the goods, let the
king make traders pay duty

10. 7. Mahabharata also enjoin that the tax
on internal industries is fixed after
taking into account the outrun,
receipts and expenditures and the
state of the arts
8. The concept of royal duty to
encourage trade and arts is seen in a
fully developed form in the epics and
smritis

11. Different Kind of Tolls:
1. The Jatakas refers to duty on articles of
trade, on imports and exports, excise duty
on wines and liquor and tolls collected on
the city gates
2. M.B. speaks of Sulkas as the toll on
Merchandise levid for the protection of
the state
3. Patanjali says that sulk was one of the
principal and perennial source of income
to the state

12. 4. Gautama fix the toll on merchandise as
1/20 of the value together with 1/60 on
roots, flowers, meat, medicinal herbs etc.
5. He also said that markets rates should be
given by traders to king
6. Manu says that at toll stations the king
shall receive 1/20 of the profit on the
prices of an articles, determined by man
expert in fixing the prices of commodities
7. Sometimes commodities were sold at
night, Manu prescribed the penalty of a
fine 8 times the value of the defrauded
duties

13. 8. Function of toll Superintendant was to
check that all Merchandise must be
properly stamped with seal mark and must
be exchanged on proper price and place
9. Those who voilate the laws should be
punished 8 times more
10.Imported commodities shall pay 1/5 of
their value as tolls
11.The toll on the vegetables and fruits was
1/6

14. 12.As regard the precious and semi precious
stones, tolls are to be decided by, experts
acquainted with time, cost and quality
13.1/5 to 1/10 of the value is paid tolls of
fibers, garments, cotton, silk, as chemicals
and coloring ingredients etc.
14.1/20 to 1/25 tolls paid on the animals,
birds fish, medicines, wood, oil, sugar,
liquor etc.
15.Duties levid both in cash and kind after
the valuation of commodities by experts

15. 16.Kautilya strictly prohibited the sale of
commodities where they are grown or
manufactured so that govt. did not
deprived of its dues
17.Kautilya described different types of
officers of the state for regulations of
trade and industries