‘Second Urbanization’ During Mahajanapadas

The period from 600 BCE to 300 BCE marks the ‘Second Urbanization’ in Indian history, signifying the resurgence of cities and city life in north India. 

• This phase witnessed the emergence of a vibrant economy, driven by urban growth, trade, coinage, and agricultural advancements.

Key Features of Urban Centres During Mahajanapadas

• Shift in Urbanization: Unlike the earlier Harappan urbanism, the second urbanization took place predominantly in the fertile Ganga valley, which became a hub of political and economic activity.
• Geographical Distribution: Cities such as Hastinapura, Rajagriha, Shravasti, Kaushambi, and Vaishali grew as political and administrative centres, while others like Ujjain and Taxila served as key trade hubs.
• Specialized Occupations: Urban centres emerged from villages specializing in crafts such as blacksmithing, pottery, and cloth-weaving. These settlements later evolved into towns and commercial hubs, fueling economic activity.
• Sacred Centres: Some cities, such as Vaishali, became important pilgrimage sites, further driving urban development and trade.

Key Terms for Ancient Cities 

• Pura: A fortified town or city, referred to in early Vedic literature. Notable cities include Champa and Taxila.
• Durga: Fortified capitals, like Rajgir and Patliputra, protected by boundary walls and linked to the wider kingdom through royal highways.
• Nigama: A merchant town where goods were exchanged, such as Ujjain and Patliputra.
• Nagara: A common term for cities, often denoting places that combined political and commercial functions, like Kasi and Rajagriha.

Growth of Trade and Commerce in Urban Centres During Mahajanapadas

• Trade as a Key Profession: Trade (vanijja) became an esteemed profession during this period, and Pali texts highlight its importance as an “excellent profession.”
• Goods Traded: Common commodities traded included iron objects (hoops, sickles, knives), salt, textiles, pottery, ivory, glassware, and metal artifacts. Horses and woolen goods were traded in the north-western regions.
• Trade Routes:
  • Uttarapatha: A major north-south trade route stretching from Lahore to Tamralipti on the Bay of Bengal. It facilitated movement of goods across the Indo-Gangetic plains.
  • Dakshinapatha: A southern trade route, connecting Pataliputra to Pratishthana on the Godavari, linking inland cities with ports on the western coast.
• Taxation and Officials: Buddhist texts mention officials called kammikas who taxed goods and even confiscated goods from tax evaders, reflecting a growing regulatory system.

Introduction of Coinage in Ancient India During Mahajanapadas

• Emergence of Coins: The introduction of coinage marked a significant development in trade and finance. Pali texts reference coins such as kahapana, nikkha, and kamsa, with silver satamana being the highest denomination.
• Impact on Trade: The availability of metallic coins transformed the economy, enabling more efficient trade and introducing new financial occupations like usury (money-lending).
• Punch-Marked Coins: Recovered from archaeological sites, these coins were predominantly silver and became the standard medium of exchange, facilitating smoother transactions and trade.

Investors and Traders During Mahajanapadas

• Gahapatis: Wealthy landowners, often depicted as peasant proprietors. They owned large estates and employed non-kin labor. They also paid substantial taxes, contributing significantly to state revenue.
• Setthis: High-level businessmen involved in trade, money-lending, and investment. Setthis played an influential role in financing and patronizing religious sects, including Buddhism and Jainism.

Factors Facilitating Economic Growth During Mahajanapadas

• Agricultural Advancements: The development of iron implements enabled the clearing of dense vegetation, facilitating the expansion of agriculture, particularly rice cultivation.
• Paddy Cultivation: Rice became the staple crop, supported by the introduction of paddy transplantation techniques. The fertile Ganga plains and other regions benefited from high rainfall, ideal for agriculture.
• Animal Husbandry: Domestication of animals, such as cattle, sheep, goats, and horses, played an important role in the agrarian economy. Cattle were considered vital for agricultural labor and grain production.
• Rise of Market Economy: The introduction of coinage and the expansion of trade led to the shift from a subsistence economy to a market-based one, where agricultural products, crafts, and luxury goods were exchanged across regions.

Urban and Rural Economy During Mahajanapadas

• Rural Economy: Villages were self-sustaining, with agriculture as the mainstay. Surplus population from overpopulated regions led to the establishment of new settlements.
• Urban Economy: Urban centres were dominated by traders, merchants, and craftsmen who produced goods for wider markets. Cities like Vaishali, Shravasti, and Kaushambi became hubs for commerce and industry.
• Internal and External Trade: The growing demand for goods within and outside the Ganga plains led to an increase in internal trade, while urban markets catered to a range of specialized goods.