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Indian Economy - Understanding the basics of Indian economic system
In medieval India, takkavi loans were given in order to
Improve agriculture
Build religious shrines
Construct flood saving embankments in cities
Serve sovereign debt
Takkavi loans were a measure of reprieve taken after few suppressing movesof Tughlaq. In order to overcome financial difficulties inhis empire,Muhammadbin Tughlaq increased the landrevenue onthe farmers of Doab(land between Ganges andYamunarivers). It was an excessive and arbitrary stepo nthe farmers.As ever famine was also ravaging that region at that time.Ithad resulted ina serious peasant revolts.The revolts were crushed. However,the Sultan realized later that adequate relief measures and the promotion of agriculture were the real solution to the problem. He launched a scheme by which takkavi loans(loansforcultivation) were given tothe farmers to buy seed and to extend agriculture.
By: Abhishek Sharma ProfileResourcesReport error
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