When the Turkish conquerors established the Delhi Sultanate in 1206, they did not merely capture territory. They reorganised how revenue was collected, how soldiers were paid, how craftsmen worked, and where people settled. The result was one of the most significant phases of town-building in medieval India. Between the thirteenth and early sixteenth centuries, administrative assignments, Sufi lodges, royal mints, military garrisons, workshops, and schools all pushed forward the growth of cities. This post breaks down the institutions and economic forces that turned scattered settlements into thriving urban centres, and explains why scholars now treat the Sultanate as a period of genuine urban expansion rather than stagnation.
Table of Contents
- How the iqta system and khanqahs built cities
- Khanqahs as nuclei of settlement
- Monetisation, trade, and the rise of capital towns
- Capitals and commercial hubs
- From military outposts to full-fledged towns
- Karkhanas and urban manufacturing
- Educational centres and social mobility
- Education, mobility, and town development
How the iqta system and khanqahs built cities
The single most important administrative institution behind Sultanate urbanisation was the iqta. An iqta was a territorial revenue assignment. Instead of paying officials and commanders a cash salary, the Sultan granted them the right to collect land revenue from a defined area. The holder, called a muqti or wali, used this income to maintain himself and his troops, and sent the surplus to the central treasury. According to historian Irfan Habib, the iqta was essentially a mechanism for collecting agrarian surplus from the peasantry and distributing it among the ruling class.
This system did far more than fund armies. Each iqta needed a headquarters where the muqti lived, kept his soldiers, stored grain, and managed accounts. These centres attracted clerks, traders, artisans, and service providers who supplied the administration and the garrison. Over time, many iqta headquarters developed into important urban centres. Because the Sultans from Iltutmish onwards regularly transferred muqtis from one iqta to another to prevent them from putting down roots and becoming independent, administrative activity spread across many regions rather than staying fixed in one place. This encouraged a network of towns instead of a single dominant capital.
Khanqahs as nuclei of settlement
Alongside revenue institutions, the khanqah shaped where and how towns grew. A khanqah was a Sufi lodge or hospice, but it functioned as much more than a place of worship. It served as a centre of teaching, charity, free kitchens, and community gathering. The IGNOU course material on Sultanate cities records that in the early phase of the Sultanate, the activities of Sufi saints and the ulema helped urban centres emerge in an area and its surroundings.
The presence of a respected Sufi saint drew pilgrims, students, and devotees, who needed lodging, food, and goods. This sustained demand turned the area around a khanqah into a populated neighbourhood. Rulers and nobles often endowed these lodges with land and grants, which deepened the link between spiritual centres and urban growth. The dargah of Nizamuddin Auliya in Delhi is a lasting example of how a Sufi establishment could anchor an entire locality.
Monetisation, trade, and the rise of capital towns
Cities cannot grow without money flowing through them, and the Sultanate transformed the medieval economy by deepening the use of coinage. Iltutmish introduced a standardised silver tanka of roughly eleven grams along with the copper jital, creating a reliable currency that merchants could trust. Wikipedia notes that Iltutmish, the founder of the system at Delhi, established silver tankas and copper jitals as the basis of the coinage. With dependable coins of consistent weight and purity, traders could conduct business with confidence both locally and across long distances.
This monetisation was fuelled by inflows of precious metals. The military campaigns of Alauddin Khalji into the Deccan and South India brought large quantities of gold and treasure into the treasury, which were then minted into coins. The wide spread of mint towns tells its own story. Major mints operated at Delhi, Lahore, Multan, Daulatabad, Lakhnauti, and Badaun, and this distribution mirrors the geographical reach of the Sultanate and the spread of commercial activity.
Capitals and commercial hubs
The capital cities were the largest beneficiaries of this monetised economy. Delhi became the political, commercial, and cultural heart of the realm, and the Moroccan traveller Ibn Battuta described it as one of the largest and most magnificent cities he had seen. Lahore and Multan in the north-west grew into vibrant commercial centres on the trade routes connecting India with Persia and Central Asia.
A rich body of trade supported these towns. A large volume of goods was exported to the Persian Gulf, West Asia, and Southeast Asia, while inland commerce was handled by communities of merchants. Overseas trade was dominated by Khurasanis and Multanis, while Gujarati, Marwari, and Bohra merchants controlled inland trade. The Sultanate also invested in infrastructure, building and maintaining royal roads such as the long highway running from Peshawar towards the eastern provinces, which made the movement of goods and people faster and safer. Important towns of the period included Multan, Lahore, Cambay, Lakhnauti, Kara, Jaunpur, and Daulatabad, each tied into this commercial web.
It is worth noting that monetisation was not always smooth. Muhammad bin Tughlaq’s experiment with a token currency of copper and brass valued at a silver tanka failed because of widespread forgery, and the coins had to be withdrawn and exchanged. The episode shows both the ambition and the risks of running a heavily monetised state.
From military outposts to full-fledged towns
Security and settlement went hand in hand during the Sultanate. To control rebellious regions and protect travellers, the rulers built thanas, which were fortified military posts staffed by officers. Balban, for example, established the Deopalgir thana near Delhi to keep the Mewatis in check, and he set up posts in areas troubled by highwaymen. The IGNOU material explains that sarais and khanqahs built in remote and insecure forest tracts were often accompanied by thanas with military officers posted there, and that such settlements quickly developed into townships or qasbas.
The logic was straightforward. A garrison needed a constant supply of food, weapons, and equipment, which created steady work for merchants and craftsmen who set up shops nearby. Permanent markets grew to serve soldiers and their families, and artisans skilled in metalwork, leather, and textiles established workshops to meet military demand. The presence of troops also made trade routes safer, which encouraged still more commercial activity. Frontier centres such as Multan and Lahore show how a strategic defensive position could mature into a bustling civilian town.
Karkhanas and urban manufacturing
A genuinely new element entered the medieval Indian cityscape during this period: the karkhana, or royal workshop. Sultans and nobles set up karkhanas in the capitals and provinces to produce goods for the court and the elite. These workshops became major centres of employment for artisans and also functioned as training schools, where older craftsmen and slaves learned the new techniques and crafts the Turks had brought with them. The contemporary chronicler Shams Siraj Afif records that Firuz Shah Tughlaq maintained as many as thirty-six karkhanas producing a wide range of items including textiles, weapons, and metalwork.
The scale of production could be enormous. Accounts of one of Muhammad bin Tughlaq’s karkhanas describe thousands of silk workers weaving and embroidering robes of honour and garments, with the Sultan distributing large quantities of clothing every year. These workshops pulled in skilled labour from many towns, drawing ironsmiths, stone-cutters, and weavers to the cities, and so directly fed urban growth. Alongside the karkhanas, dedicated commercial spaces took shape, including the busy bazar-i-chaharsu square markets and the nakhas where cattle and slaves were traded, usually outside the city walls.
Educational centres and social mobility
Learning gave Sultanate towns an intellectual dimension that attracted a distinct population of scholars and students. The madrasa, an institution of higher Islamic education, spread under the patronage of the Khalji and Tughlaq rulers. During this era, madrasas became centres for Islamic learning and administration, producing scholars trained in theology, law, and governance who could staff the bureaucracy.
The most famous example is the Firuz Shahi Madrasa at Hauz Khas in Delhi, established by Firuz Shah Tughlaq in 1352. The complex around the tank included the madrasa, a mosque, and the Sultan’s own tomb, and it was regarded as one of the best-equipped seminaries of its time. After the destruction of Baghdad by the Mongols, Delhi rose as a leading centre of Islamic education, drawing teachers and students from across the region.
Education, mobility, and town development
Education also touched social mobility, though within limits. Firuz Shah Tughlaq actively promoted learning, and the chronicler Ferishta claimed that a very large number of slaves were trained in sciences, arts, and crafts during his reign. The traveller Ibn Battuta even mentioned madrasas for girls operating in India at the time. Yet access was uneven. As historians have pointed out, the high-born families who migrated from Central Asia and Persia sent their children to the best madrasas, while children of lower castes and new converts were often kept out.
Educational patronage continued even as the central Sultanate weakened. When the Tughlaq empire fragmented, regional sultanates carried the tradition forward. The city of Jaunpur under its Sharqi rulers became a celebrated centre of learning, with hundreds of madrasas and scholars invited from far afield. Each cluster of schools supported a wider community of teachers, students, copyists, booksellers, and household staff, which steadily added to the size and vitality of the town. In this way, knowledge itself became an engine of urban growth.
Taken together, these four forces explain the urban expansion of the period. The iqta system created administrative towns, khanqahs and madrasas supplied spiritual and intellectual focal points, monetisation and trade powered commercial capitals, and military outposts and karkhanas turned strategic and productive needs into permanent settlements. The cities that emerged from this interplay shaped the pattern of Indian urbanisation that the Mughals would later inherit and build upon.
What do you think? Which factor do you believe was most decisive in turning a settlement into a lasting town during the Sultanate: the steady money of an iqta headquarters, the spiritual pull of a khanqah, or the economic activity of a karkhana? And how much of this medieval urban template can you still recognise in the older quarters of cities like Delhi, Lahore, or Jaunpur today?
References
- https://banotes.org/india-c-1206-1707/iqta-system-delhi-sultans-explained/
- https://egyankosh.ac.in/bitstream/123456789/44430/1/Unit-17.pdf
- https://en.wikipedia.org/wiki/Jital_coin
- https://www.gktoday.in/coins-of-delhi-sultanate/
- https://cdn1.byjus.com/wp-content/uploads/2021/07/Delhi-Sultanate-Administration.pdf
- https://vajiramandravi.com/upsc-exam/economy-religion-and-society-during-the-delhi-sultanate/
- https://www.egyankosh.ac.in/bitstream/123456789/109031/1/Unit-3.pdf
- https://www.historyjournal.net/article/378/7-3-24-623.pdf
- https://www.clearias.com/madrasa-education-system/
- https://en.wikipedia.org/wiki/Hauz_Khas_Complex
- https://www.livehistoryindia.com/story/monuments/decoding-madrasas
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