Jainas in Bihar in the Seventeenth Century

Summary

During the seventeenth century, eastern India underwent rapid commercial expansion as European demand for Indian cotton textiles, silk, opium and saltpetre increased. This article examines how Jain merchant‑bankers in Bihar responded to these opportunities and became pivotal in regional politics. The Jagat Seth family, originally saltpetre traders, is highlighted as a case study. As European traders sought saltpetre from Bihar, the family prospered by advancing loans to Europeans and discounting their bills of exchangehttps://jainworld.com/literature/jain-history/economic-life-of-jains-in-medieval-times/#:~:text=a%20trader%20of%20saltpetre,they%20received%20from%20other%20places. They moved operations from Patna to Dacca and later to Murshidabad, establishing a network of banking houses across Bengal and north India. Manik Chand, head of the family, cultivated close relations with Murshid Quli Khan, the Mughal governor of Bengal; when the capital moved from Dacca to Murshidabad, the family followed, recognising the importance of proximity to political powerhttps://jainworld.com/literature/jain-history/economic-life-of-jains-in-medieval-times/#:~:text=a%20trader%20of%20saltpetre,they%20received%20from%20other%20places. The article details how the Jagat Seths became financiers to the Mughal emperor Farrukh Siyar and successive nawabs. Their wealth allowed them to lend vast sums to the English and Dutch East India Companies and to control the minting of coins. They earned the hereditary title of Nagar Seth (city banker) and used their influence to mediate between European companies and local rulers. By the mid‑eighteenth century they were described as the ‘biggest purchasers of bullion’ in Bengal and were authorised to mint coins, which gave them control over exchange rates and considerable profithttps://jainworld.com/literature/jain-history/economic-life-of-jains-in-medieval-times/#:~:text=a%20trader%20of%20saltpetre,they%20received%20from%20other%20places. Their credit network used hundis (bills of exchange) to move funds across the subcontinent, facilitating trade and tax remittance. Even when Maratha raids cost them millions, their liquidity remained intact, demonstrating the scale of their operations. Beyond the Jagat Seths, the article notes that Jain merchant communities from Rajasthan and Gujarat migrated to Bihar and Bengal, establishing guilds that dealt in textiles and spices. They built temples and hosted religious gatherings, sustaining Jain identity in a predominantly Muslim environment. Their ethical reputation for honesty and non‑violence made them trusted intermediaries. European observers remarked that Jain bankers abstained from alcohol and gambling and followed strict dietary rules, which contributed to their perceived integrity. The article also discusses social dynamics: Jain merchants maintained endogamous marriage ties and supported itinerant monks, who in turn provided them with astrological and spiritual guidance. By integrating economic history with religious sociology, the article shows that Jain merchants in seventeenth‑century Bihar were not passive subjects but active agents shaping trade, finance and politics. Their success illustrates how religious values like ahimsa and aparigraha could coexist with profit‑seeking, and how tight-knit networks enabled minority communities to thrive in a volatile, imperial context.