Correct Option
The correct option is 2 only.
Explanation
In the context of Early Historic South India (c. 200 BCE - 200 CE), a distinction is drawn between chiefdoms (such as those of the Cholas, Cheras, and Pandyas in Tamilakam) and established kingdoms (such as the Satavahanas in the Deccan and Shakas in Western India). This distinction is primarily based on the mode of resource mobilization and administrative structure.
Statement-wise Analysis
Statement 1: Incorrect
Historical records and Sangam literature indicate that the early chiefs (Muvendar and minor chieftains) did not have an elaborate mechanism for collecting regular taxes. Instead, they primarily depended on gifts (tribute), plunder from raids, and voluntary contributions from their subjects to sustain their authority. Regular taxation is a feature associated with more complex state structures (kingdoms), not the early chiefdoms of the Sangam age.
Statement 2: Correct
The Satavahanas (who ruled over parts of Western and Central India) and the Shakas (of Central Asian origin, established in Western India) controlled vital trade routes. They derived significant revenues from long-distance trade, particularly the lucrative maritime trade with the Roman Empire and overland routes connecting to the north. Their control over key passes and ports allowed them to extract tolls and taxes from merchants.
Key Takeaway: In Early Historic South India, chiefs relied on gifts and tribute for resources, whereas established kings (like the Satavahanas) utilized organized taxation and revenue from long-distance trade.