Early Industrial Organisation in North India

This article examines the early industrial organization in North India, arguing that ancient Indian industrial combines, generally termed "guilds," closely resembled the prototypes of medieval Europe. The author traces the origin of these combinations to the terms *Sreni* and *Piga*, explaining that *Sreni* denoted an assembly of persons following a common craft or trade, while *Piga* referred to an association of persons of different castes and occupations, distinguishing it from the more limited *Sreni*. The urge to union was driven by anarchy and insecurity in business, as well as the severity of the *tala* law. The idea of organizing on a co-operative basis was inherent in the division of castes and the allocation of functions, with Vaityas being called *ganas* because co-operation was necessary for acquiring wealth. The development of these institutions is evidenced by Vedic texts using terms like *Sresthin* and *Sarthavaha*, and early Buddhist literature, which is full of references to guilds. The organizational structure involved the localization of industries, with specific quarters in towns designated for merchants trading in scents, garlands, grains, and liquids, as well as for artisans manufacturing worsted threads, cotton threads, and armours. In practice, industries and occupations tended to segregate, with specific streets and quarters in towns like Benares, and specialized villages in the countryside. Leadership was provided by a *jetthaka*, whose office was hereditary and honorary, based on skill rather than age. Heredity of occupation was a key factor, with families sticking to the same craft, passing down capital and experience. However, occupation was not always rigidly determined by heredity, as shown by literary references to the *dcaniyo* and *antevasi* in an establishment, where the latter undergoes a course of apprenticeship. The terms of apprenticeship were similar to bondage, with the apprentice living with the master, working for him, and being fed and taught. The master might compel the apprentice's return if he ran away, and the advantage from his work was wholly the master's. The strongest factor binding the constituencies was the operation of guild laws, which evolved around the sixth century B.C. Gautama and Manu recognized the authority of guild laws, and Vrhaspati stated that the king must approve of whatever the guilds do. These laws regulated the apportionment of shares and liabilities, with guilds dividing earnings equally or as agreed upon, and partners sharing legitimate expenses and profits according to their contribution. Rules of contract were laid down, and a healthy person who deserted his company after work began was fined. For glaring offences, a member could be treated as condemned, banished, or have his property confiscated. The guild had complete judicial authority over its members, with partners acting as judges and witnesses in their own disputes. The finance of the guild consisted of individual earnings and contributions, fines, confiscations, the king's subsidy, and profits from executions of orders. The income was distributed as dividends among members, charity, and fresh investment. The guilds also performed benevolent public works and religious contributions. The guilds stood in close relation to the state, with the king extending paternal care and respecting guild laws. The king might arbitrate disputes between a guild and its head, subsidize the guild, and had the prerogative of taxing it. The Jatakas offer instances of guild disputes, and the king inaugurated the office of the *bhandigirika* to carry judicial authority over all guilds. However, the guild was not always submissive, forming a militia to defend treasures, which could be a threat to civil power. The organized crafts included carpenters, smiths, leather-dressers, painters, goldsmiths, silversmiths, and others. The autonomy and entity of the guild were legal and real, with distinguishing colours and emblems. The guild served as a bank, receiving deposits and acting as a trustee for endowments. The article concludes by noting the strength and weakness of the guild, which could be mobile and organized, but also subject to disintegration, as seen in the Mandasor Inscription.

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