Guilds in Ancient India: A Study

In historical writings, any reference to ancient India usually leads to discussion of subjects like religion and philosophy. Development of statecraft has been the other favoured field of scholars. However, economy of the time never seems to have captured public interest and imagination in the same way as the other mentioned areas of study despite the fact that it has been discussed and researched upon by many eminent historians. Trade, crafts and their organisation are very crucial subjects in ancient Indian history as they undeniably were to ancient Indians as well. This article is an attempt in analysing this aspect based on what various scholars have examined on the subject.

473 CE, Mandsaur inscription of the Silk Weavers Guild.

Table of Contents & Links

Introduction
Early Mentions
Mauryan Period
Post-Mauryan Period
Gupta Period
Observations & Analysis
Conclusion
References
Bibliography

Introduction

Trade and crafts in ancient India saw significant development and organisation into corporate bodies i.e. guilds and this forms the main topic of this study. The functioning of these groups and co-operation of its members is a fascinating subject that enlightens us with the material aspects of ancient India and how it worked seamlessly with its social aspect. These guilds, though created for improving and safeguarding the interests of traders and craftsmen played a much larger role in the ancient Indian society. This article will explore the activities of these guilds of ancient India covering a period till approximately seventh century CE.

There were many kinds of corporate bodies for which we find mention in ancient Indian literature. Guilds, whether of traders or artisans or others were known in ancient India by various names. The words across the ancient texts that had been used to signify various kinds of co-operative bodies are śreṇī, kula, pūga, jāti, vrāta, saṁgha, samudāya, samūha, pariśat, saṁbhūya sannuthāna, varga, sārth, naigama and others.¹

Early Mentions

§ Vedic Sources

We do find mention of the word śreṇī in Ṛig Veda in its earliest, most basic meaning – a line or a series. It doesn’t seem to have any particular relation with trade or crafts at this point in time. But, as per some scholars, the earliest evidence for organisation of trade and crafts in well defined bodies under a chief can be seen in Vedic texts later than the Ṛig Veda and therefore it suggests the inception of the system of guilds in the Vedic period itself (Patra, 2008: 148). But scholars like Majumdar contends that the evidence for this view is insufficient, resting mostly on the use of the word śreṣṭhin and gaṇa in the Vedic texts like Aitareya Brāhmaṇa, Kauṣītaki and Taittireya Brāhmaṇa.² In this regard, he mentions the comment of Dr. Macdonell that the word śreṣṭhin which generally denoted head of a guild may already have formed that sense of the word in the Vedic literature.³ We however cannot say with any certainty that guilds did exist, though, social and economic conditions required for the inception of such groups might already have been sufficient in the Vedic times and that culminated in the formation of guilds in the period covered by the earliest smṛiti-s and Jātaka-s that specifically mention their presence.

§ Post-Vedic Sources

The most frequently used word in ancient Indian literature and inscriptions for these guilds was śreṇī which can be defined as a corporation of people that belonged to the same or different castes but followed the same trade or industry.⁴ It thus corresponds to guilds of the medieval Europe.⁵ Pāṇini has used many of the terms, mentioned above in the introduction of the article, particularly pūga, gaṇa, saṁgha together (V. 2. 52) and pūga, vrāta, saṁgha separately as well (V. 3. 112; v. 3. 113; V. 3. 114) (Mookerjee, 1919:32). Kāśikā explains saṁgha to simply mean a larger assembly or corporation of which pūga, vrāta etc are varieties. Mookerjee then suggests based on these definitions that pūga, vrāta etc were special kind of saṁgha or associations of men of various castes with no fixed occupation and united in their pursuit of wealth and pleasure as their aim (Mookerjee, 1919:32). However, Mookerjee states that Pāṇini also uses the specific term śreṇī (II. 1. 59) which Kayyata and Tattvabodhinī explain as –

ekena śilpena paṇyena vā ye jīvanti teṣāṃ samūḥ śreṇiḥ

i.e. an assembly of persons following a common craft or trading in a common commodity (Mookerjee, 1919: 32-33).

It would be fair to divide guilds in ancient India broadly in two categories –- trade or merchant guilds and craft or professional guilds (Patra, 2008: 148). The conventional number of guilds right from the period of the earliest Jātaka-s has been eighteen,⁶ though it does seem from the scattered references in literary texts that this number might actually have far exceeded this many a times⁷ with almost every important art or craft in a locality forming a guild-organisation.⁸ From Jātaka-s it appears that these organisations of craftsmen were headed by a Jeṭṭhaka or Pamukha (Jyeṣṭhaka or Pramukha) who was like an alderman or a president.

Motichandra is of the opinion that in early ancient India, the commencement of the concept of guild was more due to the need of bigger merchants to safeguard their interests and the smaller traders carried on their work more or less on their own.⁹ But, some scholars are of the opinion that in the initial period, the artisans’ guilds saw more concrete form of organisation than the merchant or traders’ guilds. On the authority of Fick, Majumdar states that there was a clear distinction from the early Jātaka period (7th-6th century BCE) between organisation of the merchant-trader class on one hand and the artisans on the other.¹⁰ The big hereditary families of the former for sure organised themselves under a headman – the Jeṭṭhaka (alderman) but in case of the latter, various factors like more pronounced heredity of profession, the localisation of different branches of the industry and also the institution of Jeṭṭhaka made the artisans far more organised at this early stage (Majumdar, 1922: 21).

To support his view, Majumdar mentions the example of the artisans’ villages that seem to have acted as guilds in Jātaka-s whose number was evidently quite large. For example, Mahāvaḍḍhakigāmo was a big village of 1000 families of carpenters (or dealers in wood) and Kammāragāmo had 1000 families of smiths (Majumdar, 1922: 21). The guilds of master craftsmen in gold and jewellery, in carpentary and in ivory carving are known from the earliest times in India.¹¹

“We learn from Samudda-Vaṇija Jātaka that there stood near Benares a great town of carpenters, containing a thousand families. But among these thousand families there were two master workmen each at the head of five hundred of them. On one occasion they left the town and settled with their families in an island. The story shows the mobility of the guilds which is testified to by inscriptions of a later period. It also proves that there was sometimes more than one organisation of the same class of craftsmen in the same locality. One might think that the double organisation was due merely to the large number of craftsmen, but the Jātaka stories preserve instances of a thousand men living under a single organisation.”(Majumdar, 1922: 22)

According to Patra however, with time and increasing development in trade in India, it wouldn’t be wrong to state that the merchant guilds seem to have become more influential¹² and served as a catalyst in shaping the economic life of the country.¹³ Notwithstanding this debate over which kind of guild was more dominant, ever since their beginnings, the combined body of these guilds whether of traders or artisans with their structure and functioning, quickly became like oil to the gigantic machinery of the ancient Indian economy and played a fundamental role in the society.

In the time of the earlier Jātaka-s these guilds were still rather temporary in nature, with origin of certain kind of permanence in the form of privileges like the hereditary rights and the appointment of the head (Moti Chandra, 1977: 65) in the form of the office of Jeṭṭhaka, as mentioned above. Majumdar also points out that the post of the Jeṭṭhaka seems to have been hereditary. Jātaka-s also contains instances of not infrequent fights among Jeṭṭhaka-s and how it might have become necessary to have a tribunal to adjudicate these fights.¹⁴ Important to note is that, in one Jātaka tale, one officer called Bhaṇḍāgārika (Treasurer or Superintendent of Stores) has been specifically mentioned whose office carried with it judgeship of all the merchant guilds (Majumdar, 1922: 23). Majumdar relates that in the story, no such office had existed before but did always exist after this one had been created.¹⁵ He quotes Mrs. Rhys Davids to throw more light on the creation of this office –

“The first appointment to a supreme headship over all the guilds doubled with the office of the treasurer is narrated in connection with the kingdom of Kasi at the court of Benares. Possibly the quarrels twice alluded to as occurring between presidents (pamukh) of guilds at Savatthi in Kosala may have also broken out in Benares and have led to this appointment.” (Majumdar, 1922: 23).

Probably for the first time in the history of India, an important development with regard to the structure of guilds was imparting of authority to make their own laws and confirming this authority with religious and legal sanction.¹⁶ Gautama Dharmasūtra, forming one of the earliest layers of smṛiti texts asks that the cultivators, traders, herdsmen, money-lenders and artisans to lay down rules for their respective classes (Majumdar, 1922: 24; Rao, 1950: 55), and advises the king to give legal decision only after having learned the (state of) affairs from those who (in each class) have authority (to speak).¹⁷ The heads of the guilds from now on had the right and the authority to represent their class in the royal courts (Majumdar, 1922: 24).

Cementing of these rights can be seen from the Buddhist evidence in which guilds are vested with both executive and judicial authority and their officers are even entitled to arbitrate between its members in the court.¹⁸ Noteworthy in this case is the Buddhist text Vinaya-piṭaka which states that the sanction of the guild was necessary for the ordination of wife of any of its members¹⁹ and that guild was entitled to arbitrate on certain occasions between its members and their wives (Majumdar, 1922: 25). Another striking example from Vinaya-piṭaka is when it states that a woman thief shouldn’t be ordained as a nun without the sanction of the authorities concerned.²⁰ A commentator explains what is meant by the word ‘authorities’ here –

rājā nāma, yattha rājā anusāsati rājā apaloketabbo, seṇi nāma, yattha seṇi anusāsati seṇi apaloketabbo

Where the King rules, his consent will have to be obtained where the guild rules its consent will have to be obtained (Majumdar, 1922: 25).

We also have some names of the important chiefs called seṭṭhi (śreṣṭhīn) of the merchant guilds like the example of Anāthapiṇḍika, who was the Mahāseṭṭhi, the president of a commercial federation, with numerous Anuseṭṭhis under him.²¹ The famous example of a guild and its workings can be seen in the story of Pūrṇa, a merchant who later became a famous disciple of Buddha and guild of merchants at Sopara (Śūraparaka) the most famous sea port of the western coast of India in the early Buddhist times and later periods (Moti Chandra, 1977: 141). The importance of guilds not only in the economy but also owing to their position in general in the society was such that guilds were even included in royal processions as per the Jātaka-s.²² Such perks of privilege continued and even increased with time, as mentioned frequently in numerous sources which will be related shortly.

Some guilds have also been mentioned as having become strong and big enough that they needed to maintain a body of armed force (śreṇīvala or śreṇībala) which also, according to ancient texts was one of the classes of troops that the king called upon to serve under him when necessary.²³ The rules regarding the śreṇībala have been treated in the masterpiece of Kauṭilya – Arthaśāstra and they will be dealt with in a separate section shortly but interesting to note in this matter is the mention of śreṇībala in the great epics of India — the Rāmāyaṇa and Mahābhārata. The former mentions them as ‘sayodhaśreṇī’ (Majumdar, 1922: 30) while the latter instructs the king to its use and regards it to be of equal importance as the hired soldiers — bhṛitam.²⁴

Mauryan Period

Arthaśāstra uses words like śreṇī, kula, pūga, gaṇa, and saṁgha to describe corporations or guilds (Rao, 1950: 52). In the text, Kauṭilya particularly extols corporations along with family, deeds and character of the Kings men (jāti, saṁgha, kula, karma, vṛttastavam) indicating that guild like family and caste was by now considered as a primordial unit of social organization.²⁵ The steady development of such corporate bodies like guilds had made them crucial to the economy and society both but by the time of the great Mauryan Empire, their organisation reached a great degree of sophistication as can be understood from Arthaśāstra, which meticulously treats this subject and also specifies rules regarding wages and work along with injunctions for a proper punishment to those who flouted them (Moti Chandra, 1977: 85).

Though, śreṇī has been used in Arthaśāstra to mean corporations that subsist on agriculture, trade and military service but it has also been used in the same text to mean a corporation of artisans. In case of the former, Kauṭilya refers to a class of Kṣatriya guilds which lived upon both trade and war – Kāmboja-Surāshṭra-Kshatriya-śreṇyādayo Vārtta-Śastropajīvinaḥ.²⁶ To Majumdar they seem to have been special kinds of guilds and mostly found in Kāmboja and Surāshṭra countries.²⁷ But in the case of artisans and agricultural guilds, the text makes clear provisions when they were made to situate in specified quarters of the cities and distributed according to a definite plan.²⁸ For example –- the text instructs that śreṇī of artisans manufacturing various products like worsted thread, cotton thread, bamboo mats, skins, armour, weapons and gloves shall have their dwellings to the west of the town.²⁹ It also provided protection to the guilds as can be seen from the rule that — no company other than the one of local birth (sajātādanyassaṅgha), and no guilds of any kind other than local co-operative guilds (sāmutthāyikādanyassamayānubandha) shall find entrance into the villages of the kingdom.³⁰ The text also states rules for safeguarding of the consumer. The superintendent of commerce, according to Arthaśāstra shall fix a profit of five per cent over the fixed price of local commodities and ten percent on foreign produce and the violation of this rule was to be punished with a heavy fine (Rao, 1950: 61).

Arthaśāstra also made special concessions in case of law-suits between trade guilds and accords special privileges to a merchant belonging to a guild.³¹ For Kauṭilya, the topic of the trouble caused by the guilds or their leaders was important and he considered the problems created by the leaders to be more serious for they, backed up by the support caused oppression by injuring the life and property of others (Majumdar, 1922: 28). On the question of whether a wasteland should be colonized by an unorganized population or the one consisting of corporate bodies like the guilds, Kauṭilya favours the former as the latter would be more susceptible to anger and other passions and intolerant of the calamities.³²

As mentioned earlier in the article, armed forces of the major guilds – the śreṇīvala was an important factor for the state and in keeping with its importance, in Arthaśāstra, Kautilya includes śreṇīvala among the various classes of troops which the king might possess. It was sometimes quite sufficient both for defensive as well as for offensive purposes, and when the enemy’s army consisted mostly of this class of soldiers, the king also had to enlist them in his service (Majumdar, 1922: 28). The pay of śreṇī mukhyas (chiefs of guilds) is set down as equal to that of the chiefs of elephants, horses and chariots – important parts of an ancient Indian army, and then the text remarks that the amount would suffice for having a good following in their own communities.³³ Another cunning use of śreṇīvala in the text is suggested when Kauṭilya mentions that among the nefarious ways to keep a hostile party down, one important one is when a śreṇīvala is to be furnished with a piece of land that is constantly under troubles from an enemy, evidently for keeping them too busy to interfere in the affairs of state.³⁴ Majumdar tried to find the true explanation of the word śreṇīvala in ‘Kṣatriya śreṇī’ of Kauṭilya. He defined it as a class of guilds that followed some industrial art and also military profession at the same time (Majumdar, 1922: 31). To him, the Mandasor Inscription provides its confirmation and it will be discussed in detail shortly. Majumdar finds śreṇīvala and the role they played in ancient India quite similar to those of Italian guilds of the Middle Ages.³⁵

On the basis of an example from Mṛichchakaṭika (a later Saṃskṛit drama by Śūdraka), scholar Maity is of the opinion that wage labourers seem to have had no guild organisation (Maity, 1957: 151). But Arthaśāstra does mention rules specifically regarding guild of labourers or day workers³⁶ and grants them special privileges like a grace of seven nights over and above the period agreed upon for fulfilling their engagement (Majumdar, 1922: 27). Arthaśāstra also specifically mentions guilds of many kinds of workmen (saṅghabhṛtaḥ) employed by the companies as Saletore calls them. The text also relates about those who carried on co-operative work (saṁbhūsamutthāthāraḥ) who also employed these workmen (Saletore, 1943: 321). Guilds of these workmen (saṁghabhṛitaḥ) were paid by the employers for the work done but not for the work stipulated but was not done, the guilds were also required to divide the wages either equally or as agreed upon (Rao, 1950: 60). Once the work had commenced, leaving it in between on one’s own accord was to be punished.³⁷ It seems that the first mistakes were taken lightly as Kauṭilya remarks that neglect in the work for the first time should be shown mercy (abhayam) but continued neglect should be punished by expulsion (pravāsanaṃ)³⁸ and other major offences (mahāparādha ) by death.

Special rules were also made regarding the guilds of artisans – they are told to fulfill their engagements in due accordance with their agreement as to time, place, and form of work. Delaying the completion of work and flouting the agreed terms or even denying the existence of agreement will result in forfeiture of ¼th of their wages and punishment of a fine equal to twice the amount of their wages, except in troubles and calamities. They are also told to make good whatever is thus lost or damaged.

In the Mauryan period, trade was looked after by Director of the Trade i.e. paṇyādhyakṣa and monopoly in trade of foreign goods was strictly forbidden. Foreign traders could not be sued in the courts for their debts, but interestingly, if they were members of the guild, then they could be taken to the courts (Moti Chandra, 1977: 83-84).

The Mauryan period also saw a proper development of rules for money lending. The dhāraṇika i.e. debtors and the dhanika i.e. bankers or creditors had fixed rules of conduct.³⁹ Elaborate regulations were also made regarding the conditions under which agreements of the merchants were considered valid. Ancient literature of this time also had detailed rules to safeguard not only the interests of the merchants but also the consumers (Moti Chandra, 1977: 85-86). But these rules concerning individual merchants do not fall in purview of this article as it only concerns itself with activities of merchants under a corporate body like guild. Noteworthy is the fact that by the Mauryan period, merchants also provided the facility of depositing sums (upanidhi) and thus, acted as bankers to people. The interest on this sum was equal to what was in any other ordinary business. However, it is unsure whether at this point in history only individual prosperous merchants provided this facility or guilds did it as well.

Post-Mauryan Period

§ Buddhist Sources

When we move forward from the heydays of the Mauryan empire, various sources – both literary and otherwise give us details about the activity of guilds. Buddhist text Mahāvastu, considered to have been composed between the period of 2nd century BCE and 4th century CE gives us information regarding the flourishing trade and its systemic organisation in the period. It mentions lists of twenty-four guilds, twenty two heads of guilds and as much as thirty professions.⁴⁰

“The Mahāvastu mentions the guilds of Kapilavastu. In the ordinary guilds are mentioned the workers in wrought and unwrought gold, sellers of wrappers (pravarika), the workers in chankshell (iankhika), ivory carvers (dantakara), lapidaries (manikara), stone carvers (prastarika), perfumers, weavers of silk and woollen clothes (koshavika), oil pressers, sellers of dahi or curd (dadhyka), cake sellers (Moti Chandra, 1977: 149-50).”

Mahāvastu also mentions special kind of guilds called the śilpāyatana-s that were important for trade and commerce of the country and goods manufactured by them were not only meant for domestic market but were also important for the exports. Their workshops comprised of many kinds of artisans like the “ironsmiths, copper plate makers, bronze casters, braziers, tin-makers, glass-makers and lathe workers. Garland-makers, fillers of the cushion with cotton (purimakdra), potters, weavers of wool, cane-workers, weavers on jacquards (devaiatantra), washermen, dyers, needle- workers, cotton weavers, painters, makers of gold and silver ornaments, farriers, washers, barbers, borers, stucco-makers, chariot-makers, architects (sutradhara), well diggers, dealers in woods and bamboos, sailors and gold washers were important as well (Moti Chandra, 1977: 150).

Though from the lists of various kinds of guilds either in Mahāvastu (mentioned above) for the earlier period or Jambū dvīpa prajñapti for the Gupta period, it appears that the śreṇī or guild was mosty an organisation of producers or professionals and not those of the traders responsible for sale of those products manufactured.⁴¹ Thus it appears that the corporate organization was still more prominent among the artisans or producers compared to the traders. Thus, at this time period, śreṇī was only organization of producers (Patra, 2008: 148).

§ Traders’ Organisation

There is thus a debate regarding existence of guilds or any other significant corporate organisation among the traders unlike in the case of artisans and craftsmen. With whatever we have learnt by now, we are in a position to form an opinion on it. Majumdar finds proof for the presence of traders’ organization from quite early on. He prefers to call them traders’ league.⁴² He states that many Jātaka stories mention sea going merchants as a group. In particular, Valāhassa Jātaka relates about five hundred merchants under a chief who chartered a vessel for trading in Ceylon (Śri Laṅkā) (Majumdar, 1922: 80-81). Similarly there are many such stories, one involving a group of merchants and their journey on a ship and the treasure that was gained in course of the voyage which then was equally distributed among them.⁴³ We also have examples from the Jātaka tales of traders within India, from Benares or Śrāvasti going on a business together under a chief (Jeṭṭhaka), sometimes to Ujjain, sometimes to other destinations.⁴⁴ The word seṭṭhi in Buddhist literature seems quite certainly to mean a distinguished individual and a representative of the communities of traders (Majumdar, 1922: 82). Not to forget the evidence from Gautama Dharmasūtra which as mentioned above, specifically involved traders among other groups who are asked to form rules for their respective classes and advises the king to consult their representatives before coming to any decision regarding their community (Majumdar, 1922: 83). Guttila Jātaka refers to traders of Benares who travelled to Ujjain for trade. They are told to have lodged in the same place and enjoyed themselves together thus confirming that this was a concerted group action.⁴⁵ Even Kauṭilya in his Arthaśāstra mentions traders who unite in causing rise and fall in the value of articles and live by making profits cent per cent (Majumdar, 1922: 85). Thus, the Jātaka stories coupled with the evidence from Gautama Dharmasūtra and Arthaśāstra give confirmation to existence, even flourishing corporations or guilds of traders.⁴⁶

It is clear from the Sanskrit Buddhist literature of the period that the importance of guilds in the economic aspect of the period had not only continued from earlier times but even seems to have increased with their increasingly developed and complex organisation, rules and regulations. Importance was given to unanimous decisions i.e. validity of only those rules and decisions that had been passed unanimously in these bodies, evidently for safeguarding the interests of guild members and this really is a crucial part in the structural development of guild organisation. Another interesting fact we learn is about a rule at the time according to which only the guild was authorised to purchase goods in bulk and no individual member of the guild could do so (Moti Chandra, 1977: 148) but rules like this were binding only when they had been passed after a unanimous vote (Moti Chandra, 1977: 149) and when the decisions of the guild were challenged by other members but the guild was unable to clear the disputes within the organisation, then the case was taken to the king, the supreme and final arbiter. Guilds had great influence over the king, with the most prosperous guild chiefs being the chief banker, even adviser of the king, helping him financially in the time of the need.⁴⁷

§ Early Dharmaśāstra-s

Guilds continued to remain fundamental to the Indian economy and their importance during that time is clearly visible when we see that they are dealt with extensively by the Indian legal texts of the time like the smṛiti-s — the Dharmaśāstra-s like that of Manu, Yājñavalkya and Viṣṇu. This information is supplemented by epigraphy of the period mentioning of their important role and functioning.

Manusmṛiti continues to define śreṇī as an association of traders and artisans, money-lenders and men proficient in the four sciences of learning (Rao, 1950: 54). It is significant to note that right from the time of early smṛiti-s like the Gautama Dharmasūtra to the later work like Manusmṛiti, the traders have been included along with the artisans and other producers as being organised into corporate bodies of guilds. Manu also not only accepts the rights of these guilds to make their own rules and regulations but also provided them with authority, another point of continuation from the past. Thus, Śreṇī-dharma i.e. usages of the guilds are told as having the force of law.⁴⁸ It further states that “If a man belonging to a corporation inhabiting a village or a district (grāmadeśa-saṁgha) after swearing to an agreement, breaks it through avarice, (the king) shall banish him from his realm.”

The text also has special sections of laws titled samvitvyatikrama – violation of compacts, samayayānapākrama – non-performance of agreements that are related to various groups, which include śreṇī, pūga and naigama.⁴⁹ While from this text, the meaning of śreṇī is a well known but pūga is a bit difficult to define. In the post-Vedic period, the early mention of pūga in Buddhist text like Vinaya piṭaka was in the sense of corporation of a town or a village (Majumdar, 1922: 139) but Kātyāyana defines pūga as a group of merchants. Naigama on the other hand is explained as a group of various inhabitants of the same town which is really insufficient as an explanation but Amarakośa sheds some more light on the term where it is applied particularly to a merchant.⁵⁰

Yājñavalkya and Viṣṇu smṛiti-s also contain such injunctions regarding guilds. The former states that if a man steals the property of a guild or any other corporation, or breaks any agreement with it, he shall be banished from the realm and all his property, confiscated.⁵¹ Yājñavalkya also states that the duties arising from the rules and regulations of the corporation (sāmayika), provided they were not inconsistent with the injunctions of the sacred texts, as well as the regulations laid down by the king, must be observed with care.⁵²

§ Early Inscriptions

As we reach the Kuṣāṇa period, epigraphic evidence starts to emerge that gives information regarding guilds in ancient India. Many Kuṣāṇa inscriptions refer to trade guilds and perhaps unsurprisingly, according to scholar Saletore, majority of them appear to be the corporations of craftsmen. He mentions the Sōnāri Stūpa I rail inscription that relates about gift of a man named Dhamaguta (Dharma Gupta?) who was a Navakarmika, an architect.⁵³ Another type of architects mentioned in Kuṣāṇa inscriptions is Vihārakāravhayiṇa (Vihārakārapakiṇa), who were responsible for the repairs of the monasteries.⁵⁴ There are also inscriptions that mention guilds of the lohakākāra, possibly relating to either smiths or according to Saletore, the term might even include artisans of other metals as well (Saletore, 1943: 322). Goldsmiths (Hiraṇyakāra) have also been mentioned in these inscriptions. As mentioned before in the article, Jātaka-s also provides confirmation about such corporate bodies.

While there is no doubt that guilds of various kinds and professions existed in the Kuṣāṇa times, it is very difficult to find out about their administration from these inscriptions. What is noteworthy is that even at his earlier period, one significant function of some of these guilds was depositing the sums of some public benefactors for specified works of common welfare (Saletore, 1943: 323). An interesting evidence, probably the first of its kind which Saletore points out is an inscription from Mathurā in which a foreigner named Kanasarukmāṇa has been mentioned as depositing 500 purāṇas as a permanent endowment (akṣyanivī) with Sabittakara and Rāka corporations with the condition that every month (māsānumāsaṃ), the interest accruing from this amount was to be utilised for feeding one hundred Brāhmaṇa-s in a Puṇyaśālā and for provisions for indigent at the doors of this house of charity.⁵⁵ From this time, guilds become an important centre for such endowments and we find them frequently even in the Sātavāhana inscriptions (Saletore, 1943: 323).

Other examples of inscription from this period include the Nāsik inscription of Uṣavadāta, son-in-law of Śaka satrap Nahāpāna, dated around 119-124 CE.⁵⁶ It is a crucial piece of information that furnishes important details about various activities of the guild of weavers. According to it, the king permanently deposited 3000 kārṣāpaṇa-s at varying interest with two major guilds of weavers at Nāsik (Morwanchikar, 1980: 916). To one, he gave 2000 at the rate of 1% per month and to the other he gave 1000 at ¾ % per month. This shows that the rate of interest varied between 12 to 9 % per annum.⁵⁷ The interest from these deposits was to be used for distribution among the bhikṣu-s to cover for their expenses of clothes etc during their stay in the monsoon (Morwanchikar, 1980: 916). This inscription also informs us about an important step of the process related to the the assembly of the guilds i.e. naigama sabhā. The inscription mentions that this donation was proclaimed in the naigama sabhā which acted as the sanctioning authority.⁵⁸

We also have example of a 3^rd century CE Nāsik inscription in the period of Ābhīra king, Rājā Māṭharīputra Īśvarasena, son of Ābhīra Śivadatta in his ninth regnal year. The inscription mentions endowments with many guilds like that of the potters (kularika), oil millers (tilapisaka) etc for philanthropic purposes. (Morwanchikar, 1980: 916). It states about two investments – one of 1000 kārśāpaṇa-s and another of 500 kārśāpaṇa-s in trade guilds at Govardhana i.e. old Nāsik. These sums were endowed for providing medicines for the sick among the monks of the monastery at Nāsik hills⁵⁹ and benefactress was a lay devotee named Viṣṇudattā, Śakānī, mother of Gaṇapaka Viśvavarman and daughter of Śaka Agnivarman.

It would be wrong to contend that the practice of depositing these permanent endowments with the guilds started only first or second century CE on the basis of these inscriptions. The guilds must have formed a high reputation for their honest operations in the society if the royalty was using their services for philanthropy. And such reputation forms over a long period of time which also suggests that the guilds might have been accepting deposits for quite some period of time.

These inscriptions are mostly from western parts of India and from the same part of the country, we come across some other kinds of organisations and some interesting terminology than the usual śreṇī. This organisation was called Sanigha (most likely derived from Saṃgha) which was a somewhat bigger guild of the persons following same profession but belonging to various castes and also regions (Morwanchikar, 1980: 915). Another interesting terminology from western India is the use of the word Bhojika for the chief executive of the guilds other than adhyakṣa, mukhya or the usual śreṣṭhin (Morwanchikar, 1980: 915).

Gupta Period

§ Later Dharmaśāstra-s and Other Literary Sources

The Gupta period saw the most special attention being given to specifying laws for guilds and defining their activities with great details. The later Dharmaśāstra-s of Nārada and Bṛihaspati treat guilds and their organisation in such comprehensive way that it signifies the level of maturity these corporate bodies reached in the Gupta period specifically.⁶⁰ No doubt the earlier texts whether the Arthaśāstra or the smṛiti-s of Gautama, Manu, Yājñavalkya related various laws on the subject but these later smṛiti-s analyse the matter in depth, probably signifying the exceptional growth of the economy in the Gupta period. On this, scholar Maity opines –

“For the first time in the Gupta period the law-books lay down detailed rules on the functioning of guilds and partnerships in business. This indicates a considerable growth in the activities of such bodies, which came more and more to the attention of the jurists. We may thus assume that the Gupta age was marked by increased trade, as compared with the period between the Mauryas and the Guptas, when earlier Smṛitis, such as Manu, Gautama, Yājñavalkya and others were written.” (Maity, 1957: 164)

But this needs to be stressed that this was not a new phenomenon. Though, Nāradasmṛiti and Bṛihaspatismṛiti was compiled during the Gupta period and gives details regarding the rules and regulations of the myriad of trade practices of that period but as per scholar Motichandra, there is a strong possibility that these rules were also current in the early centuries of the Common Era.⁶¹ So these later texts should be seen in continuation from the developments of the earlier periods.

Jambūdvīpa prajñapti dated to the Gupta period gives the name of the eighteen traditional guilds – potter, silk weaver (paṭṭailla), gold-smith, cooks (sūvakāra), singer (gandhabba), barber (kāsavaga), garland maker, vegetable grower (kāchhī), betel leaf seller, cobbler, oil presser (jantapīlaga), sellers of napkins (gañchhī), calico printers (chhimpa), brazier, tailor (sīvaga), cowherds, hunter (bhilla) and fisherman.⁶² The traditional number of the guilds in the ancient texts has usually been told to be eighteen but we wouldn’t be wrong to presume that the actual number might have exceeded it by much. Dramas like Raghuvaṃśa and Mudrārākṣasa mention guilds of architects and guild of jewelers respectively. Mudrārākṣasa even has the jewelers’ guild president Chandanadāsa playing an interesting role in the story. The pilots and sailors had their own guilds (Moti Chandra, 1977: 144) and texts inform us about the vigorous knowledge and training that a head of the guild of pilots went through. One of the names of the position of chief of the sailors’ guild was niyāmakajeṭṭha.⁶³ At other places, the sailors’ guild has been called nāvikatantra.⁶⁴ Interestingly, Bṛihaspati mentions even the guilds of painters, dancers, religious orders, dyers and even robbers! (Rao, 1950: 55)

It seems that the membership of the guilds was also governed by some regulations and qualifications (Patra, 2008: 147). The first step in a newly established guild was the monetary deposit which was backed by a written documentation and then the amount was also guaranteed, thus providing it with validity.⁶⁵ The guild was bound by a constitution which had its laws written in it and it was an accepted agreement of the members of the guild. The rules had to be followed by all of its members and consciously failing to do so was to be punished by confiscation of the property and banishment from the town.⁶⁶ There were provisions for punitive measures against those who flouted rules of the guilds. A member who fell out with his corporation or neglected his work was fined six niṣka or four suvarṇa (Maity, 1957: 60). The guilds operated on the principles of safeguarding their business. Bṛihaspati states that danger to one was to be regarded as danger to all and should be repelled by collective efforts (Maity, 1957: 155).

Guild presidents still had pre-eminent position in its heirarchy. According to texts, only those who were honest, acquainted with the Vedas (Saletore, 1943: 326) and their duty, able, self-controlled, sprung from good families and skilled in every business, should be appointed as heads of an association. But hostile, dissolute, bashful, indolent, timid, avaricious, or very young person must not be chosen for these affairs.⁶⁷ It is interesting to see the list of requirements of virtues in the chief of a public body, a definition that must have included guilds, though these expectations rather define an ideal. Notwithstanding whether these virtues were actually found or not but the position was considered important enough by our ancient jurists that it required such ideal persons on the heads of public bodies. On special occasions, the preeminent guild presidents like the chief banker amongst other important personalities are even told to have accompanied the king (Moti Chandra, 1977: 172).

As for the internal laws of guilds, Nārada smṛiti defines the aggregate of the rules settled by the corporations by the word ‘samaya’⁶⁸ and these smṛiti-s of the period confirm that duty towards the guild was from now on considered equally important as that towards the state (Majumdar, 1922: 41-42). Nārada specifically states that the King should maintain the usages of the guilds and other corporations. Whatever be their laws, their duties, the rules regarding their attendance and the particular mode of livelihood prescribed for them, that the King should approve of.⁶⁹

In Bṛihatsaṃhitā, Varāhamihira has written about the general prosperity of guilds and the guild presidents.⁷⁰ The source of the finance of the guilds has been mentioned by Bṛihaspati as – gift from the king, profits earned on public works, earnings from the fines imposed on those who violated the guilds laws and profits earned through the banking functions of the guilds (Maity, 1957: 159-160).

There is no doubt that by the Gupta period, śreṣṭhin – the guild president had become a very important position and the contemporary inscriptions like the Pahārpur Copper Plate of 478-9 CE confirm the same.⁷¹ From other inscriptions, which we will discuss shortly in detail, we even come across the names of such eminent presidents of the guilds like Jīvanta and Matṛidāsa (Maity, 1957: 160). The guild presidents were clearly prestigious personalities of the society in ancient India with important roles. It also appears that the position of the guild president might have been hereditary. In Bṛihad Kathā Śloka-Saṁgraha, there is a story of a merchant named Sānudāsa, who was the son of a merchant of Champā. He was appointed as the head of the merchant guild (śreṣṭhipada) after the death of his father (Moti Chandra, 1977: 134). But, in a new development, the president/chief of the guild was now to be assisted by two, three or five executive officers (kārya chiṅtakāḥ)⁷² and from texts like Yājñavalkya smṛiti and other Dharmaśāstra-s, it seems that the actual powers had by now come upon these executive officers (kārya chiṅtakāḥ).⁷³ These officers could not be autocrats for their ultimate responsibility to the law and custom was assured by the instrumentality of the assembly (Majumdar, 1922: 40). Mitramiśra is quite explicit on this point. He says that the removal of the executive officers was the proper function of the assembly (samūha), and that the king would step in to punish these men only when the assembly found itself unable to do so.⁷⁴

We also find information regarding the workings of the guild assembly –

“There was a house of assembly where the members of the guild assembled to transact public business from time to time. According to Nārada, regular rules were laid down for the attendance of members, and the king had to approve of them, whatever they might be. It appears from Mitramiśra’s comment on the passage, that the sound of a drum or other instruments was a signal for the attendance of members in the guild hall for the transaction of the affairs of the community.” (Majumdar, 1922: 55)

A democratic system seems to have been followed in the assembly where regular speeches were made (Majumdar, 1922: 55). Majumdar mentions that Chaṇdeśvara in his Vivādaratnākara quotes a passage from Kātyāyana which means that the executive officer who injures another for having said reasonable things, interrupts a speaker (lit. gives no opportunity to the speaker to continue), or speaks something improper, is to be punished with ‘pūrvasāhasadaṇḍa’.⁷⁵

Nārada and Bṛihaspati also mention about conventions or compacts called samvitpatra made by these groups. These conventions of the guilds were to be strictly enforced by the King barring the situation if these were averse to the King’s interests or disapproved by the people or were harmful to the public good.⁷⁶ These compacts were called stithipatra-s by Kātyāyana who defined them as deeds of convention for preserving their usages intact.⁷⁷

There was also an interesting practice according to which all guilds could not have their business done in one market only and businessmen engaged in different professions were asked to live in different quarters of the city and that they could not stay in one quarter. Motichandra suggests the possibility that perhaps the members of the guilds were not required to pay the market tax. The tax was either deposited with the king in the palace or handed over to revenue officers appointed for that purpose. Interestingly but unsurprisingly, in the eyes of law, foreign merchants were not entitled to those rights which indigenous merchants claimed (Moti Chandra, 1977: 173).

It also becomes clear from these smṛiti-s that while the sanctity and the validity of the guild in treating its members was duly accepted by the state, the laws of the state also safeguarded guild members from any injustice as they could appeal to the king against it. If it was founded by the king that their judgment was not in conformity with the guild laws and usage then he could annul the decision of the guilds (Maity, 1957: 161). The King also intervened when there was a dispute between the guild president and his associates.⁷⁸ It was an accepted provision that one could quit the membership of the guild on his own accord (Majumdar, 1922: 58).

The texts also informs about many rules regarding the actions that can be taken in case of the defiance by guilds against the state. According to Bṛihaspati – “A traders guild whose members conspired to cheat the King of the share due to him from the trade profits, shall be compelled to pay eight times as much and shall be punished if they take to flight.”⁷⁹ In Nārada Smṛiti, we are told with reference to guilds and other associations, that confederacy in secret, resort to arms without due causes and mutual attacks, will not be tolerated by the king (Majumdar, 1922: 30). It could be a hint towards the use of śreṇīvala by guilds and other associations against the king but it is unsure.

It is noteworthy that by the Gupta period, these guilds were duly accepted by the state as a body with authority of judicial administration over the general population. Bṛihaspati states that relatives, guilds, assemblies (of co-habitants), and other persons duly authorised by the king, should decide lawsuits among men. Though, these powers were limited and Bṛihaspati makes a clear exception concerning violent crimes (sāhasa)⁸⁰ –

“When a cause has not been (duly) investigated by (meetings of) kindred, it should be decided after due deliberation by guilds; when it has not been (duly) examined by guilds, it should be decided by assemblies (of co-habitants); and when it has not been (sufficiently) made out by such assemblies, (it should be tried) by appointed (judges).” (Majumdar, 1922: 63)

§ Later Inscriptions

Mandasor Inscription of Silk-Weavers – As we move towards archaeological evidence for activities of ancient Indian guilds in Gupta period, one of the main sources is an inscription, mentioned before in this article called the Mandasor Inscription of the reign of Kumāragupta I. This inscription is an extremely crucial one for it furnishes with details about multiple aspects of functioning of a guild.

This Mandasor Inscription (not to be confused with the other Mandasor Inscription of Yaśodharman) is particularly famous for its mention of silk weavers from Lāṭa (present day southern Gujrāt) and their guild whose members were very proud of their organisation.⁸¹ The guild is told to have originally belonged to Lāṭa viśaya near Narmadā region, but then the guild migrated en masse inland in the country to Daśapura or the Mandasor region of Western Mālwā and its members took to other professions. Some decades after the migration, they also caused a temple of Sun to be built in Mandasor in 436 CE.

In his fascinating opinion connecting this migration to world events of the time, Maity has mentioned that the reason for their migration could have been failure of profitable silk trade with the West due to difficulties of the Roman Empire which faced attacks from the Visigoths in early 5^th century CE.⁸² The trade was disrupted as a result and this reflected in the tottering fortunes of the silk-weavers in the western coast of ancient India. The guild migrated and its members then took to various others professions, as mentioned in the inscription. Maity suggests that weavers probably found it difficult to convey their products to the sea for export and local demand might have been insufficient to keep all of them employed and therefore, they might have decided to undertake other professions.

Though, it speaks to the general prosperity of India of the time that the weavers, despite leaving their ancestral profession became prosperous in their new professions as well.⁸³ The inscription also informs us that these guild members despite undertaking different professions, still considered themselves as members of their earlier guild. The guild was prosperous, strong and prestigious enough to undertake building of a temple to Sun and then its subsequent repair in 473-474 CE (Maity, 1957: 113). The general prosperity is again confirmed as the inscription mentions the guild having stores of wealth acquired by the exercise of their craft (Saletore, 1943: 347). And when such was the affluence of a successful guild, then it is hardly surprising that these were important for the state as a source of taxes which duly demanded its share from these guilds.

Another intriguing point is suggested by Majumdar with regard to this particular inscription. As per him, it confirms the existence of Kṣatriya śreṇī-s mentioned in Arthaśāstra.⁸⁴ As mentioned earlier in the article, Kṣatriya śreṇī-s was a class of guilds that followed some industrial art and also military profession at the same time (Majumdar, 1922: 31). And the Mandasor inscription states that as many of its members took to other professions, some of them took to arms and these martial spirits valorous in battle “even to-day…effect by force the destruction of their enemies.”⁸⁵ Majumdar finds it curious that this silk-weavers’ guild originally belonged to Lāṭa province on the border of Surāshṭra which, according to Kauṭilya, abounded in these Kṣatriya guilds. He finds the later example of this kind of Kṣatrīya śreṇī in the Veḷaikkāra of the southern India in the early medieval period (Majumdar, 1922: 31).

An important point that emerges from inscriptions such as the above is that these corporate or guild inscriptions were undertaken by guilds themselves when necessary signified by the use of the expression — by the command of the guild — and this refers to the authority of this corporation of getting this inscription composed with a praśasti (lit. praise, meaning eulogy) as we are told that this inscription was carefully composed by Vatsabhaṭṭi.⁸⁶ What was the importance of such authority will be discussed later in the post.

Along with such humongous task of getting a temple built and repaired, we also have examples of gifts or donations by these guilds. There is an inscription from Junnar that records a meritorious gift of a cave and a cistern by the śreṇī of dhāmnika (guild of corn dealers) (Morwanchikar, 1980: 917). Another inscription from Junnar records investment of income of two fields with the guild at Koṇāchika for planting Karanja trees and banyan trees (Majumdar, 1922: 36).⁸⁷ The ‘Koṇāchika’ inscription is interesting as usually the guilds are named after their profession but in this case, it is named after a place, suggesting that either there was only one guild at this village, thus it didn’t require any specific mention or that the whole village formed one guild (Majumdar, 1922: 38). But Morwanchikar thinks that Koṇāchika was actually the name of the captain and not a place.⁸⁸ Nonetheless, it is interesting that the usual method of naming guilds after a profession has not been followed. Another one records investment of money with the guild of bamboo-workers and the guild of braziers (Majumdar, 1922: 36).

Indore Copper Plate Inscription – Another significant inscription of the Gupta period is the Indore Copper Plate Inscription of Skandagupta. It is a fine example showing continuation of permanent endowments for religious and beneficial purposes with the guilds.⁸⁹ It mentions guild of oil sellers (Moti Chandra, 1977: 173) and informs about a permanent endowment made by a Brāhmaṇ named Devaviṣṇu from Indrapura (Indore) with an oil-men’s guild of the same place to perpetually maintain a lamp in the temple of the Sun god. The head of this guild was named Jīvanta (Maity, 1957 116). According to some scholars, this money was then further invested by the guild either in its own business or lent to others. Whatever was the case but in return they paid interest that daily provided two palas of oil for the lamp.⁹⁰

Others – The reputation and prestige of these guilds was such that even emperors like Chandragupta II (c. 408 CE) and Kumāragupta I (c. 418 CE) deposited money with the guilds to maintain almshouses (sattrā) out of its interests (Gadhwā Stone Inscriptions) (Maity, 1957: 159). In one of them, Chandragupta II states how he endowed a guild headed by Mātṛdāsa…for the purpose of increasing the religious merit…fashioned…the Brāḥmaṇas of the community of a perpetual almshouse…by ten dināra-s (Saletore, 1943: 368). Similar Kumāragupta I donated two gifts of ten dināra-s and another one of twelve dināra-s. There is also Sāñchi stone inscription of the reign of Skandagupta dated 450-51 CE where one Upāsikā Harisvāmini makes the permanent endowment of twelve dināra-s for philanthropic purposes.⁹¹ These deposits or religious endowments were done with proper documentation of the agreements with clear statements of the conditions under which the agreements were made.⁹² We also have examples where the great merchant guilds evidently undertook industrial enterprises in the country. For example the great masonry work of Lake Sudarśana mentioned in the Jūnāgadh Rock Inscription of Skandagupta, 456-57 CE (Saletore, 1943: 366).

§ Clay Seals

We also have evidence about working of these guilds through some clay seals discovered from the Gupta sites like Basarh (ancient Vaiśālī) and Bhita (near Prayāga). In these seals, the legends and the names are often joined along with those of private individuals⁹³ and probably are examples of the conventions or compacts made by the local guilds with private individual or individual members, i.e. the samvitpatra or stithipatra of the late smṛiti-s.⁹⁴ Evidently, the contracts made by these guilds were registered by affixing seals. Saletore mentions survival of one such seal where the great corporation of bankers seems to have made such an agreement with a Kumārāmātya (Saletore, 1943: 332). The usual legends mentioned in the seals from the former site are the following –

Śreṣṭhi-Sārthavāha-kulika-nigama

Śreṣṭhi-Kulika-nigama

Śreṣṭhi-nigama

Kulika-nigama

Prathama-kulika

While meaning of some of the words is clear, others are disputed. Individually, here Śreṣṭhi is considered to mean bankers, Sārthavāha – traders or merchants, kulika – artisans but various interpretations are provided for nigama or in some cases, nigamā. Majumdar believes nigam to simply be taken in its basic form to mean a city⁹⁵ and therefore, the legends above would refer to cities administered by Śreṣṭhin, Kulika and Sārthavāha, jointly or severally (Majumdar, 1922: 43). As per him, the clay seals thus belonged to guilds which were powerful enough to be recognised as the ruling authority in a city.⁹⁶

According to other definition, naigama was a guild of traders belonging to various towns.⁹⁷ As per, Bṛihadkalpasūtrabhāṣya, the nigama (undoubtedly the sarrāfā of the medieval period) were of two kinds, one that only carried out the business of banking and the other that also carried on other business transactions (Moti Chandra, 1977: 172). As per other interpretations, nigama only means to refer to a corporation and the legend means a corporation of bankers, traders and merchants⁹⁸ or a corporation of bankers as the legend Śreṣṭhi-nigama or Śreṣṭhi-nigamasya suggests. Banking certainly was an important aspect of ancient India and particularly of the region of Magadha. Saletore quotes D. B. Spooner on this banking aspect of many a seals from Basarh (Vaiśālī) –

“Banking was evidently as prominent in Vaiśālī as we should have expected it to be, judging from the notice in Manu to the effect that the people in Magadha were bards and traders.”
– Saletore, 1943: 367.

Bloch was of the view that these legends put together suggested existence of – something like a modern chamber of commerce — this view was supported by scholars like Mookerjee and Saletore but Maity disagrees and considers this analogy to be far-fetched and unsuitable to ancient Indian situation (Maity, 1957: 157). The place of their discovery according to Maity might have been the record department of the local government or office of some corporate organization as many seals have been found with the name of the king like Chandragupta and many seals name state officials along with guilds, merchants, artisans etc (Maity, 1957: 157). However, there is no doubt that these seals were used for business transactions.

§ Role in the Administration

Records from the Gupta Empire show that some of the guild leaders of merchants and artisans played significant role in the general administration of the country as well.⁹⁹ A record from the time of Kumāragupta I and Buddhagupta relates about one Vetravarmana, the governor of Koṭivarṣa viṣaya who ruled with the help of an advisory board or a municipal board that consisted of Nagara Śreṣṭhin – the guild president; Sārthavāha – the chief caravan leader i.e. the chief merchant; pratham kulika – the chief artisan and jyeṣṭha kāyastha – the chief scribe.¹⁰⁰ Thus, Saletore aptly explains the importance that the chiefs of these guilds of respective professions had in the general administration –

“This statement reveals how the captains of industry in those days were virtually the rulers of the locality, for they formed a majority in the Advisory Board and their word must have carried considerable weight. These representatives were also assisted by the Pustapālas or the Record-Keepers who were conversant with the previous grants, which had to be verified before a plot of land could be sold (Saletore, 1943: 290).”

The term nagaraśreṣṭhi recorded in Gupta inscriptions (Maity, 1957: 156) is interpreted by some scholars as the guild president, as mentioned above. But Maity considers it to mean president of the merchant guild who also acted as a representative of the guild in the administration of the town.¹⁰¹ This interpretation thus considers sārthavāha as only the chief caravan leader.

This role of the heads of guild in matters related to administration is also supplemented by an example from the famous drama Mṛcchakaṭika where in a scene, a court is in session and the judges were accompanied by guild warden (Śreṣṭhin), a clerk (Kāyastha) and others (Saletore, 1943: 270). The court according to Saletore was called the adhikaraṇa – a court or an office where land transactions were decided and possibly the judicial matters might have also been discussed.¹⁰² However, the opinion on the role of guilds in the general administration of a region is disputed. Some scholars think that Gupta period records like the Dāmodarpur Copper plates (433 CE and 438 CE) in reign of Emperor Kumāragupta I rather suggest that the role of guild chiefs was more in the administration of justice rather than the general administration (Majumdar, 1922: 64-65). The passage in Majumdar’s opinion contains reference to courts presided over by the chiefs of different corporations of merchants and artisans.¹⁰³

Observations & Analysis

Based on what we have learnt, we are thus, in a position to make some observations on the functioning and importance of guilds. They have been called by a scholar as the primary groups, fundamental in forming the social nature and ideals of the individual caste (Rao, 1950: 51). The extensive existence of the guilds in the ancient Indian society goes far to illustrate how far the spirit of co-operation was organised into a proper body for streamlining the trade practices and safeguarding the traders and artisans interests.

Scholars have opined that the economic activity of the guilds, particularly during the Gupta period closely resembles to that of the later ones in medieval Europe.¹⁰⁴ The guilds not only secured their interests from the internal and external dangers but also created an apt environment for individual craftsmen to develop his skill (Maity, 1957: 155). The economic life of the period found its best expression through the organization of the guilds.¹⁰⁵ Their importance was accepted by the political writers of the time who are unanimous in stating that the king had to respect the customs and the laws of the castes, districts, guilds and families (Rao, 1950: 55). Guilds and caste seems to have complemented each other in ancient India. According to Maity, ancient Indian society and its stratification into numerous castes not only helped to generate but also maintain an attitude of co-operative organization in industry and trade. As per him, the hereditary nature of the trades and occupations helped a great deal in the formation of guilds and corporations.¹⁰⁶

§ Guilds & the State

However, the extent of freedom provided to the guilds in our texts to make their own laws, rules and regulations etc has led some scholars to suggest that Hindu society was “essentially pluralistic.” But, Rao points out in his paper that nowhere in Arthaśāstra does Kauṭilya imply that groups and associations should be independent or co-ordinate with the state.¹⁰⁷ Rao continues –

“to the associations the state was not a mere policeman but a doctor and as social reformer, playing the role of conscience and providence, toughing the rectitude of each man’s life, the truth of his dealing with his own conscience, the whole substance of character and conduct, righteousness both of act and of mental habit. The groups never distrusted nor regretted state interference and never attempted to delimit the sphere of the state; on the other hand, the groups desired that the authority of the State should be exercised over the whole of the social and economic life of the community (Rao, 1950: 56-57)”

The state vis-à-vis associations like guilds did not only have protective duties but also what are called promotive duties.¹⁰⁸ Even though guilds and other associations had the authority to make their own laws, they still had to be in tandem with those of the state. The guilds had to conform to the rules and regulations of the sovereign devised to keep the integrity of the state (Rao, 1950: 60).

§ Prestige & Perks

The prestige of these bodies was such that one of the great epics of India – the Mahābhārata also gives information regarding the importance of guilds. The importance of śreṇīvala in Mahābhārata has already been mentioned previously . It is fascinating to learn that in the epic, even Duryodhana after being defeated by the Gandharva-s refuses to go back to the capital as he felt humiliated and did not want to face the heads of the guilds amongst others.¹⁰⁹ The text describes the guilds as a principal source of royal power and inciting them for treason is considered in it as part of legitimate strategy against an enemy kingdom (Majumdar, 1922: 42). Adhering to the duties of the guilds to which a person belongs is considered very crucial. It states that nothing could redeem the sins of forsaking the duties of the guilds.¹¹⁰

Guilds even had rights to have their own banners and flags bearing emblems and implements of their profession (Patra, 2008: 149). Majumdar has mentioned a crucial detail vis-à-vis guilds and their rights in Harivaṁśa –

“An interesting reference to guilds is also contained in a passage in Harivaṁśa which describes the fatal wrestling match between Krishna and the followers of Kaṁsa. The arena which was built for accommodating visitors contained pavilions for the different guilds, and we are told that these pavilions, vast as mountains, were decorated with banners bearing upon them the implements and the emblems of the several crafts.”¹¹¹

Along with banners and emblems, we have learnt from many inscriptions, some of which have been mentioned above that guilds had the authority of having their own elaborate praśasti-s. What does this authority of getting their praśasti-s composed meant? Actually it signified their respectful position in public and helped in increasing their social acceptability and political prominence.¹¹² The fact that some guilds donated gifts and even lands clearly means that they also had corporate property i.e. property collectively owned by the guild members¹¹³ which according to their standing, they used for philanthropy. However, it wouldn’t be wrong to assume that the main goal of these organisations was precisely to protect their own interests (Patra, 2008: 147). They also were much organised for none but a fully organised body could thus shift from place to place and yet retain its unity and public confidence¹¹⁴ as we have learnt from the example of Mandasor Inscription of silk weavers.

§ Contribution

The sheer number of the kinds of trade, industry and crafts in ancient India was such that they needed such corporate bodies in order to efficiently function and prosper. According to Patra, easy marketing of some products would not have been possible without efficient organisation that these guilds provided as it gave security from robbery, wild animals, absence of proper means of communication and natural hazards.¹¹⁵ He continues that in ancient times, the individual even if owning large sums, still depended on guilds for investments as guilds supplied financial and legal assistance to the merchants (Patra, 2008: 151) and also provided a certain sense of security. The role of merchant guilds was also crucial in the sale and the distribution of the surplus products of the village and the cities.¹¹⁶

We have learnt that these guilds were also used extensively by the public for permanent endowments in order to do their parts in charity and guilds thus acted as trustees of public money. On what made guilds such an attraction for such deposits, Maity gives following explanation –

“..these guilds must have possessed a coherent organisation and long standing reputation sufficient to induce the public to trust large sums of money to them. Their business transactions must have been characterised by honesty and fair dealing, otherwise men would scarcely have made perpetual endowments with them. The efficiency of their organisation is further witnessed from their longevity, expressed in the terms of their contract: and even the death or the change of members did not hamper their regular transactions of business and credit. What is still more surprising and significant, the guilds were apparently allowed perfect freedom of immigration as dictated by economic necessities. But change of place did not affect in the least their internal cohesion, their credit or their liabilities to the depositors.” (Maity, 1957: 159)

§ The Question of Banking

However, there is a difference in opinion amongst scholars when it comes to the role of guilds as banking institutions in ancient India. According to one stream of thought, the evidence is inconclusive to prove that guilds in any way engaged in money lending. The Arthaśāstra evidence only suggests depositing of sums and not of money lending (Dutt, 1991: 198). But to understand the situation further, we will have to go back in time for clarity regarding the concept of money lending in ancient India.

Approach Towards Money Lending – According to Dixit, approach in the Ṛig Veda towards aspirations of wealth is very positive¹¹⁷ and the activities of borrowing, lending and repaying the debt were even at such a early period, a very common phenomenon and default in repayment of the debt was considered a criminal act “bordering on a grave sin.” However, it is not sure whether at this time the practice of charging interest was also followed or not (Dixit, 2012: 96). But from the evidence of Baudhāyana, we learn that in the later Vedic times, money lending was recognized as a regular profession¹¹⁸ and was by this time associated with the vaiśya-s (Dixit, 2012: 96). Though the term ṛṇa has always been used to generally mean debt but another word kusīda was used to denote material debts distinct from the spiritual ones (Dixit, 2012: 96) and thus the act of lending money but on an appropriate interest was given legal and religious sanction (Dixit, 2012: 96). Dixit on the authority of Apte mentions that the practice of money lending continued in what she calls the Upaniśadic age at an annual rate of fifteen per cent.¹¹⁹ The ancient Indian law givers therefore, maintained a balance between dharmyavṛddhi and adharmyavṛddhi i.e. between normal rate of interest and what was considered exorbitant and hence, wrong (Dixit, 2012: 97). At this point, it is noteworthy that two different terms were used to denote this difference – the term kusīda was meant for legally and religiously sanctioned rate of interest and vārdhuṣa for lending on an oppressive rate of interest. That’s why, the latter was condemned. Therefore, in ancient India, money lending was considered an honest business.¹²⁰ It then means that money lending on decent rates of interests was not unwelcomed. That’s why many merchants and particularly the prosperous ones engaged in business of money lending. However, by the Gupta times the term vārdhuṣa generally denoted usury or specifically interest on grain and does not seem to have negative connotations. But that does not mean that exorbitant rates were not condemned for they definitely were.

Against Guilds as Banks – The money lenders were called kusīdin and vārdhūśika and according to Dutt, they have nowhere been mentioned as the members of any guilds.¹²¹ She continues that as guilds had reputation of integrity and honesty, they avoided money lending (Dutt, 1991: 198). Guilds, in her opinion accepted public deposits and acted as trustees of the sums but there was no regular payment of interest to the depositors (Dutt: 1991: 198) and these were usually endowments for religious or philanthropic purposes.¹²² However, many scholars disagree with this view.

For Guilds as Banks – According to Dixit, guilds were an integral part of the credit structure along with individual money lenders, the village assemblies, the temples and even the state.¹²³ Patra on the authority of Gupta details that as guilds acted as trustees for endowments, it seems possible that the money obtained was then invested in loans to traders, thus fulfilling their function as banks of the ancient India.¹²⁴ He continues that if the permanent endowments were made, it is safe to assume that short time savings with interest earnings were very likely as well (Patra, 2008: 151). In such investments the terms (samaya) were agree upon and the parties were abided by it. The rate of interest on loan granted by guilds was higher in case of unsecured loan like maritime trade loans because the risk involved in the sea trade was immense¹²⁵ as there was less chance of recovery of these loans due to the inherent uncertainties of it (Patra, 2008: 150), particularly in the ancient times.

Maity also favours the view that these guilds used to function as banks as well. They received deposits and paid interest on them which according to him shows that they also lent money to others and thus made profit in these transactions. His reasoning behind such conclusions is that if they didn’t made profit or more investment out of these deposits then it was quiet impossible for them to pay regular interest to the depositors.¹²⁶ Our texts anyway did not condemn usury in itself, only its exorbitant rates. Thus, guilds would not have found much difficulty in operating honest money lending along with their other functions.

§ Social Participation

An important aspect of the guilds was their role in the society other than the work of a trading corporation. The guilds of the time also used to provide sums for many actions of social utility and for the general use of the public like the facilities for the travelers in form of rest houses, pools, gardens, drinking water for them. The construction and maintenance of the temples was another important role that the guilds frequently contributed to. The Mandasor inscription of the guild of silk weavers mentioned earlier, specifically states how the guild undertook the construction of Sun Temple in 437-8 CE, and then also repaired the temple in 473-4 CE.¹²⁷ There is even record of guilds undertaking the construction of assembly houses. These various examples go on to further solidify the engaging and crucial philanthropic role that guilds played in the society and the mention of such actions of guilds by smṛiti writers proves that it was a recognized aspect of these corporations in which all the members were bound to contribute and was not an example of one-off instance of charity.

“They also extended their helping hand to poor people who could not afford to perform Saṃskāras which generally imply the religious observances after the death of relatives, the birth of a child, the sacred-thread ceremony, the marriage ceremony etc.”

– Maity, 1957: 158

Conclusion

We thus learn from the views expressed by various scholars on the subject that trade and crafts, their production and distribution in ancient Indian society were heavily organized under the system of guilds. They were an important intermediate body between the state and the individual and hence, were crucial to the ancient Indian society. While it is certainly true that their motive was to safeguard the interests of their profession but their activities were in tandem with the other aspects of society as well, be it political or cultural and the system worked in co-ordination with the state enriching the life of ancient Indians.

References

¹ Patra,2008. Merchants, Guilds and Trade in Ancient India. p. 148
² Majumdar, 1922. Corporate Life in Ancient India. p. 15
³ ibid.
⁴ History and Culture of Indian People Vol II. p. 601
⁵ ibid.
⁶ ibid.
⁷ ibid.
⁸ibid.
⁹ Moti Chandra, 1977. Trade and Trade Routes in Ancient India. p. 65
¹⁰Majumdar, 1922. p . 20
¹¹History and Culture of Indian People Vol II. p. 2.
¹²Patra,2008. p. 148
¹³ibid.
¹⁴Majumdar, 1922. p . 23
¹⁵ibid.
¹⁶ ibid. p. 24
¹⁷ibid.
¹⁸ History and Culture of Indian People Vol II. p. 601
¹⁹ ibid.
²⁰ Majumdar, 1922. p . 25
²¹ History and Culture of Indian People Vol II. pp. 601-602
²² Majumdar, 1922. pp. 23-24
²³ History and Culture of Indian People Vol II. p. 601
²⁴ Majumdar, 1922. p . 30
²⁵ Rao, 1950. Guild and State in Kautilya’s Arthashastra. p. 53
²⁶ Majumdar, 1922. p . 29
²⁷ ibid.
²⁸ Rao, 1950. p. 60
²⁹ ibid. p. 54
³⁰ ibid. p. 55
³¹ Majumdar, 1922. p . 26
³² ibid. p. 28
³³ ibid. p. 29
³⁴ ibid.
³⁵ ibid. p. 31
³⁶ ibid. p. 27
³⁷ Rao, 1950. p. 60
³⁸ ibid.
³⁹ Moti Chandra, 1977. p. 85
⁴⁰ ibid. p. xiv
⁴¹ Patra,2008. p. 148
⁴² Majumdar, 1922. p . 80
⁴³ ibid. p. 81
⁴⁴ ibid.
⁴⁵ ibid.
⁴⁶ ibid. pp. 84-85
⁴⁷ Moti Chandra, 1977. p. 149
⁴⁸ Majumdar, 1922. p . 33
⁴⁹ History and Culture of Indian People Vol III. p. 604
⁵⁰ ibid.
⁵¹ Majumdar, 1922. p . 33
⁵² ibid. pp. 41-42
⁵³ Saletore, 1943. Life in Gupta Age. p. 321
⁵⁴ ibid. p. 322
⁵⁵ ibid. p. 323
⁵⁶ Maity, 1957. Economic Life of Northern India. p . 158
⁵⁷ ibid.
⁵⁸ Morwanchikar, 1980. Early Traders and Trade Guilds of Western India. p. 916.
⁵⁹ History and Culture of Indian People Vol II. p. 222
⁶⁰ Maity, 1957. p. 157
⁶¹ Moti Chandra, 1977. p. 150
⁶² ibid. p. 174
⁶³ ibid. p. 62
⁶⁴ ibid. p. 218
⁶⁵ Maity, 1957. p. 157
⁶⁶ ibid.
⁶⁷ ibid. p. 160
⁶⁸ Majumdar, 1922. p. 41
⁶⁹ Maity, 1957. p. 161
⁷⁰ ibid. p. 156
⁷¹ ibid. p. 48
⁷² ibid. p. 160
⁷³ Majumdar, 1922. pp. 40-41
⁷⁴ ibid. p. 59
⁷⁵ ibid. pp. 55-56
⁷⁶ History and Culture of Indian People Vol III. p. 604
⁷⁷ ibid.
⁷⁸ Maity, 1957. p. 161
⁷⁹ ibid.
⁸⁰ Majumdar, 1922. p. 41
⁸¹ Moti Chandra, 1977. p. 173
⁸² Maity, 1957. p. 138
⁸³ ibid.
⁸⁴ Majumdar, 1922. p. 31
⁸⁵ ibid.
⁸⁶ Saletore, 1943. p. 343
⁸⁷ Morwanchikar, 1980. p. 917
⁸⁸ ibid.
⁸⁹ Maity, 1957. p. 156
⁹⁰ ibid. p. 158
⁹¹ Saletore, 1943. p. 368
⁹² Maity, 1957. p. 159
⁹³ History and Culture of Indian People Vol III. p. 605
⁹⁴ ibid.
⁹⁵ Majumdar, 1922. p. 44
⁹⁶ ibid. p. 45
⁹⁷ History and Culture of Indian People Vol II. p. 313
⁹⁸ Saletore, 1943. p. 367
⁹⁹ ibid. p. 366
¹⁰⁰ ibid. p. 290
¹⁰¹ Maity, 1957. p. 156
¹⁰² Saletore, 1943. p. 270
¹⁰³ Majumdar, 1922. pp. 64-65
¹⁰⁴ Maity, 1957. p. 155
¹⁰⁵ ibid. p. 161
¹⁰⁶ ibid. p. 155
¹⁰⁷ Rao, 1950. p. 56
¹⁰⁸ ibid. p. 57
¹⁰⁹ Majumdar, 1922. p. 42
¹¹⁰ ibid.
¹¹¹ ibid. p. 43
¹¹² Patra,2008. p. 149
¹¹³ ibid.
¹¹⁴ Majumdar, 1922. p. 66
¹¹⁵ Patra,2008. p. 150
¹¹⁶ ibid. p. 147
¹¹⁷ Dixit, 2012. Ancient Indian Attitude Towards Money Lending… pp. 95-96
¹¹⁸ ibid. p. 96
¹¹⁹ ibid. p. 97
¹²⁰ Patra,2008. p. 151
¹²¹ Dutt, 1991. Contribution of Guilds Towards the Growth of Banking… p. 198
¹²² ibid.
¹²³ Dixit, 2012. p. 97
¹²⁴ Patra,2008. p. 151
¹²⁵ ibid. p. 149
¹²⁶ Maity, 1957. p. 158
¹²⁷ ibid.