Historical Background of the Economy of Medieval Tamil Region

 

The economy of Tamil Nadu has shifted decisively to a high growth trajectory with service sector contributing more than 54 % of the GDP with manufacturing sector at around 34%. This figure when seen in the light of historical evidence is neither surprising nor unexpected. Industrial goods have turned up in archaeological excavations at Keeladi, Adichanallur, Kodumanal, Pattaraiperumbuddur and several other places. The megalithic sites distributed over the dry plains of Tamil Nadu have yielded beads made of carnelian and other semi-precious stones like agate, beryl and amethyst. The social organization necessary for such sophisticated industrial enterprises is reflected in the development of craft guilds and specialized merchant bodies which traded goods produced in Tamil Nadu like steel, textiles, ceramics and metal ware all across the Indian Ocean from the Red Sea to the Straits of Malacca and beyond. 

Chola Inscription

The history of trade and mercantile activity from the Coromandel Coast to port towns located in present day Malaysia, Indonesia and Vietnam forms the mainstay of research both by Indian and Western scholars. Inscriptions of the early medieval period in both Tamil and other languages attest to the presence of merchant bodies like the famous “nanadesi” merchants who traded in the “five hundred directions”. This particular guild which is revealed in early inscriptions had a long presence and seems to have operated almost till the end of the twelfth century. Originating in Aihole in Karnataka, this merchant body worked in nagaram or trading centers where they carried out business activities which included sale of commodities which included essentials like Rice, Salt and Cloth. Luxury goods like Silk and Aromatic products were in the hands of merchants who specialized in the exchange of such goods. Inscriptions from Kanchi Managaram from the early Chola period speak of the active role played by traders carrying out trade in this luxury product.

Farm products like arecanuts, flowers, ginger, turmeric figure prominently in medieval inscriptions. Forest products like timber, animal skins and elephant tusks are also known to have formed part of the goods involved in trade. In addition we have finished goods like iron ingots, gold and silver jewelry and textiles being exported from the region.

The rise of the Cholas in the Kaveri region around the middle of the ninth century AD gave further fillip to the flourishing trade with South East Asia, particularly the Srivijaya empire. Chinese sources speak of trade missions that reached China from the Pandyan kingdom. The archaeological evidence from the port of Quanzhou suggests that merchants from Tamil Nadu were living in the port and an inscription of AD 1279 points to the presence of a temple at that site. Excavations have led to the discovery of a temple whose fragments are now preserved in the museum. Similarly, an ocean-going vessel was recovered from Kadakkarappally, a site in Kerala which can be dated to the medieval period. Artifacts of Tamil origin have been found in South East Asia and these include textiles, religious icons, vessels made of copper and bronze and iron tools and weapons.

Historians are unanimous is placing the Tamil region as a preeminent trading and commercial hub of the medieval period. In A D 1025 when Rajendra Chola I (1014-1044) launched a naval expedition against Srivijaya, it appears that mercantile interests were significantly impacted as several towns and cities in Srivijaya were destroyed.

The trade in goods was sustained by the organized production of artisans in craft centers which contained weavers, carpenters, jewelers, metal workers and potters all of whom carried out their trade in fixed peasant localities termed as nadus. Merchants and traders belonging to various guilds gathered the goods produced and helped to distribute them across the region and through the trans-oceanic routes to China and South east Asia. Marco Polo’s testimony of the shipping he witnessed when he arrived at Kayalpattinam suggests that even as late as the 13^th century goods produced in the region were finding their way across the Bay of Bengal.

The coastal region of Tamil Nadu has closely mimicked the patterns of trade commerce and exchange throughout history. The trade with the Roman Empire is seen in the numerous hoards of Roman coins distributed throughout the peninsula. Gold bullion in the form of coins flowed into India in exchange for textiles, gems and animals. The wild animals let loose in the Colosseum originated in India, as Africa lay largely beyond Roman imagination. The sudden eruption of the Huns of the Steppes of Central Asia and the attacks on Rome disrupted the demand for goods from the region and therefore we see a shift towards South east Asia from around the 5^th and 6^th centuries coinciding with the rise of the Pallavas. From the  9^th century  onwards China made its presence felt in the region and Chinese ceramics of the Tang and Sung dynasties have been found in the coastal regions as well as in important medieval sites such as Maligaimedu, the site of the Chola royal residence near Gangaikondacholapuram.

In more recent times we have seen trading communities from South India emerge as entrepreneurs and bankers in different parts of South east Asia particularly Malaysia and Myanmar. Building up on historical links with the region trading communities with adequate skills and social capital built up thriving businesses that could hold thir own even against discriminatory practices introduced by the colonial rulers.

Hence it is certainly not difficult for us to understand that in the light of History the Tamil region has always been at the cutting edge of trade commerce and exchange.

This article was published in Times of India, Chennai June 23 2025