UPSC CSE Pre 2012

Ancient Economic Organizations

Authentic Past Paper Standard Evaluation

With reference to the guilds (Shreni) of ancient India that played a very important role in the country's economy, which of the following statements is/are correct? 1. Every guild was registered with the central authority of the State and the king was the chief administrative authority on them. 2. The wages, rules of work, standards and prices were fixed by the guild. 3. The guild had judicial powers over its own members. Select the correct answer using the codes given below:

Solution & Analysis

Answer: C

Concept Guilds (Shreni) were powerful professional organizations of artisans or merchants that operated with a high degree of autonomy, functioning as mini-corporations in ancient India.

Explanation Legal texts (Dharmashastras) and inscriptions indicate that guilds were self-governing bodies. They fixed their own commercial standards and exercised internal jurisdiction over their members.

Logical Breakup
Logic 1 (Statement 1 is Incorrect): Guilds were not state-controlled; they were autonomous. While kings respected guild laws, the king was not the 'chief administrative authority' over their internal workings.
Logic 2 (Statement 2 is Correct): Guilds acted as regulatory bodies, determining wages, quality standards, and pricing for their respective trades.
Logic 3 (Statement 3 is Correct): Guilds possessed judicial powers to resolve disputes among members based on their own customs, which were recognized by the state.

Active Recall

Question

Could guilds act as financial institutions?

Answer

Yes, ancient Shrenis often functioned as banks, accepting deposits and lending money to both members and the public.

Core Insight

The autonomy of the Shreni system shows that ancient Indian commerce was regulated more by civil society and professional ethics than by state intervention.