Although the Mughal Empire was created and sustained by military warfare, it did not vigorously suppress the cultures and peoples it came to rule, but rather equalized and placated them through new administrative practices, and diverse ruling elites, leading to more efficient, centralised, and standardized rule. The relative peace maintained by the empire during much of the 17th century was a factor in India's economic expansion. The main base of the empire's collective wealth was agricultural taxes, instituted by the third Mughal emperor, Akbar. Mughal India was also the world leader in manufacturing, producing about 25% of the world's industrial output up until the 18th century. Burgeoning European presence in the Indian Ocean, and its increasing demand for Indian raw and finished products, created still greater wealth in the Mughal courts.
Contemporaries referred to the empire founded by Babur as the Timurid empire, which reflected the heritage of his dynasty, and this was the term preferred by the Mughals themselves.
The Mughal designation for their own dynasty was Gurkani (Persian: گورکانیان, Gūrkāniyān, meaning "sons-in-law"). The use of "Mughal" derived from the Arabic and Persian corruption of "Mongol", and it emphasised the Mongol origins of the Timurid dynasty. The term gained currency during the 19th century, but remains disputed by Indologists. Similar terms had been used to refer to the empire, including "Mogul" and "Moghul". Nevertheless, Babur's ancestors were sharply distinguished from the classical Mongols insofar as they were oriented towards Persian rather than Turco-Mongol culture.
Another name for the empire was Hindustan, which was documented in the Ain-i-Akbari, and which has been described as the closest to an official name for the empire. In the west, the term "Mughal" was used for the emperor, and by extension, the empire as a whole.