The notion that the Mughal Empire enriched India has long been a subject of debate. Proponents argue that during the Mughal reign, India’s contribution to the global economy was at its highest, implying a period of prosperity. However, a closer examination of historical facts in a broader context reveals a different narrative.Â
Unravelling the GDP Conundrum
Gross Domestic Product (GDP) is a crucial economic indicator, yet it fails to provide a comprehensive picture. While it is widely accepted that India’s GDP was the largest in the world during Aurangzeb’s reign, this statement alone can be misleading. GDP’s calculation does not account for crucial factors, such as population size, which significantly influences a nation’s overall economic output.
The Importance of Per Capita GDP
To better understand living standards, per capita GDP, which is GDP divided by population, serves as a more reliable metric. For instance, although India’s GDP exceeds Finland’s by a factor of 10, Finland’s per capita GDP surpasses India’s by more than 20 times, reflecting a higher quality of life.
Examining the Historical Data
A chart from Wikipedia presents a compelling analysis by contrasting India’s share of world GDP with its share of global population over time. This comparison reveals a more accurate representation of economic conditions. Prior to the Mughal era, from 1 to 1500 AD, India’s contribution to world GDP exceeded its contribution to the world population, indicating higher living standards compared to the rest of the world.
The Decline Under Mughal Rule
Significantly, the chart shows a decline in this ratio after the Mughals’ arrival in 1526. By the time of Aurangzeb’s death, the ratio had dropped substantially below 1, signifying a deterioration in Indian living standards relative to the global average. This downward trend continued during the British colonial period, further exacerbating the economic decline.
Corroborating Evidence
Additional research by Stephen Broadberry, Johann Custodis, and Bishnupriya Gupta in their report, “India and the Great Divergence: An Anglo-Indian Comparison of GDP per Capita, 1600-1871,” reinforces the findings. Their data clearly illustrates a decline in India’s GDP per capita under Mughal rule, contradicting the notion of Mughal-era prosperity.
The evidence presented in this article challenges the widespread belief that the Mughals enriched India. While India’s GDP may have risen during Aurangzeb’s reign, the simultaneous population growth overshadowed any potential economic gains. The historical data unequivocally demonstrates a deterioration in living standards and economic well-being during the Mughal era, mirroring the detrimental impact of British colonial rule. As such, it is crucial to re-evaluate the economic narrative surrounding the Mughal dynasty and acknowledge the harsh realities that prevailed during their reign.