The Vijayanagara Empire — Part 3: Economy and Society

4. Economy

4.1 Agriculture and Irrigation

Agriculture formed the backbone of the Vijayanagara economy, supported by elaborate irrigation works. The location of the capital was determined in part by the natural basin of the Tungabhadra, whose streams were dammed to create reservoirs. Key hydraulic structures include:

• Kamalapuram Tank: Built in the early fifteenth century; its water irrigated nearby fields and was conducted through a channel to the "royal centre."
• Hiriya Canal: Drew water from a dam across the Tungabhadra, irrigating the cultivated valley between the sacred centre and the urban core. Built during the Sangama dynasty.
• Krishnadeva Raya's Tank: Portuguese traveller Domingo Paes described a tank built at "the mouth of two hills," with water brought through pipes from over fifteen kilometres away, reportedly employing fifteen to twenty thousand workers.

A distinctive feature of the city's fortification was that it enclosed agricultural tracts within the city walls. Abdur Razzaq noted "between the first, second and the third walls there are cultivated fields, gardens and houses." This unusual strategy aimed to prevent besieging armies from starving the city into submission.

4.2 Trade (Horses, Textiles, Spices)

Trade was central to both the economy and political survival of Vijayanagara. Since warfare depended on effective cavalry, the import of horses from Arabia and Central Asia was critical. Arab traders initially controlled this trade; local communities called kudirai chettis (horse merchants) also participated. From 1498, the Portuguese established themselves on the west coast and became major players in the trade.

Vijayanagara was renowned for its markets in spices, textiles and precious stones. Domingo Paes described the city as "the best-provided city in the world," with bazaars offering rubies, diamonds, emeralds, pearls, cloths and every commodity. Fernao Nuniz described markets "overflowing with abundance of fruits" and noted plentiful meat sales. The revenue from overseas trade contributed significantly to state prosperity — which is precisely why Krishnadeva Raya gave special attention in the Amuktamalyada to improving harbours and encouraging foreign merchants.

The popular traditions of the period captured the regional political economy symbolically: Deccan Sultans = ashvapati (lord of horses); Vijayanagara rayas = narapati (lord of men); Gajapati rulers of Orissa = gajapati (lord of elephants).

4.3 Guilds and Urban Economy

The urban core was organised into distinct occupational quarters. Barbosa described ordinary houses "arranged according to occupations, in long streets." Chariot streets extending from temple gopurams were lined with pillared pavilions in which merchants set up their shops, creating vibrant bazaar streets. Fine Chinese porcelain found in excavations attests to the presence of wealthy traders and robust international commercial connections. Muslim merchants occupied their own residential quarter, with mosques whose architecture mirrored local mandapa styles — an eloquent symbol of cultural synthesis.

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5. Society and Religion

Vijayanagara society was hierarchical yet diverse. The empire incorporated communities speaking Telugu, Kannada, Tamil and Sanskrit within a pluralistic imperial framework. Broad varna-jati patterns shaped social organisation, but the nayakas — military chiefs who usually spoke Telugu or Kannada — formed a militarised intermediate group whose social identity was tied to martial function rather than birth status alone.

Religion in Vijayanagara was principally Shaivite. The kings claimed to rule on behalf of Virupaksha, the guardian deity identified as a form of Shiva. The sacred marriage of local mother goddess Pampadevi to Virupaksha was celebrated annually at the Virupaksha temple, linking the monarchy to local goddess-worship traditions. The rulers also drew on Vaishnavite traditions: the Vitthala temple introduced the worship of Vitthala (a form of Vishnu generally worshipped in Maharashtra) into Karnataka, showing how rulers synthesised diverse devotional traditions to build an imperial culture.

Jaina temples of the pre-Vijayanagara period existed alongside Hindu temples in the sacred hills, suggesting a degree of religious pluralism. The presence of Muslim merchants and mosques within the city reinforces this picture. Temple building was an important means for rulers to establish and legitimise authority through association with divine power. Royal portrait sculpture was displayed in temples, and the king's visits were treated as state occasions accompanied by important nayakas.

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