Correct Option
The correct option is 2 only
Explanation
The Mughal monetary system was trimetallic, consisting of gold (muhar), silver (rupaya), and copper (dam). The silver rupee was the standard currency for trade and revenue. Since India had negligible domestic silver production, the economy relied heavily on the import of bullion through foreign trade to sustain the minting of coins.
Statement-wise Analysis
- Statement 1 is Incorrect: The stability and uniformity of the Mughal silver rupee were maintained due to the continuous influx of silver bullion. During the 16th and 17th centuries, India maintained a favorable balance of trade, exporting textiles, spices, and indigo in exchange for precious metals. This steady supply of silver allowed the Mughal mints to issue coins of high purity and standard weight.
- Statement 2 is Correct: The Mughal administration successfully enforced the collection of land revenue in cash in many parts of the empire, particularly in the core regions. The influx of silver facilitated the monetization of the economy, rather than hindering it. While there were occasional regional fluctuations, the general trend was an expansion of the cash nexus, not an inability to collect taxes due to shortage.
- Statement 3 is Incorrect: Silver bullion from the New World (the Americas) was a primary source of the metal entering India. European trading companies, such as the Portuguese, Dutch, and English, brought vast quantities of American silver to purchase Indian goods. Far from being prevented, this flow was the mechanism that integrated India into the early modern global economy.
Key Takeaway
Key Takeaway: The Mughal economy was highly monetized and integrated into global trade networks, relying on the import of New World silver to sustain its currency stability and cash-based revenue system.