From Prosperity to Fragmentation: Trade and Commerce under the Later Mughals

The Mughal Empire, which had once flourished under rulers like Akbar, Jahangir, and Shah Jahan known for administrative sophistication, military prowess, and economic prosperity entered a prolonged period of decline in the 18th century. This phase, commonly referred to as the era of the Later Mughals, began with the death of Emperor Aurangzeb in 1707. His successors were largely weak and ineffective, unable to maintain centralized control over the vast empire. As the imperial authority weakened, regional powers such as the Marathas, Sikhs, Rajputs, Nawabs of Bengal, Awadh, and Hyderabad asserted greater autonomy, leading to political fragmentation across the subcontinent. This fragmentation significantly impacted the economic structures that had flourished under a unified Mughal administration. The disruption of law and order in many regions made long-distance trade routes increasingly unsafe, resulting in a decline in interregional commerce. Traditional trade routes fell into disuse, while newer, more localized markets emerged under regional powers. These shifting patterns altered the dynamics of urban economies, reducing the dominance of major Mughal-era trading centers and giving rise to regional hubs that served the interests of newly autonomous states. Artisanal production and traditional crafts, once protected and patronized by the Mughal court, suffered due to political instability and fluctuating demand. With the decline of imperial workshops and the reduced capacity of royal and noble patrons to support craftsmanship, many artisans faced economic hardship. Moreover, inconsistent taxation policies and increased demands by local rulers disrupted both agricultural productivity and urban manufacturing. The Mughal system of revenue collection, based on the jagirdar and mansabdari frameworks, began to collapse, resulting in inefficient tax administration and increased exploitation of the peasantry.