Markets in eighteenth century Bengal economy

Abstract

This article explores the emergence, functioning and growth of markets in early modern Bengal and suggests the existence of decentralised interlinked exchange sites whose numbers increased over the course of the eighteenth century, with founders from diverse social groups and clearly delineated rules about establishment and resolution of conflict. Markets were both extensive as well as efficient with panoply of market regulations to ensure the smooth functioning of these sites. Investment made by different strata of society, guiding principles determining the spatial and temporal distribution of market places, the pervasive and robust service industry, internal consumption and mercantile penetration, in agriculture as well as other sectors, consolidated the process of commercialisation and shaped the provincial economy. A differentiated merchant community, with differing scales of operation, area and profit margin, serviced this economy. Both the indigenous and the early Company state were beneficiaries of the taxes but they were not the prime movers. The Nizamat of Bengal played a facilitating role in the smooth functioning of the market places, but the state even in the later part of the eighteenth century did not or could not act as the sole unilateral arbiter of all that was happening in the economic sphere.