Ghiyasuddin Tughlaq laid the foundation of the Ttughlaq Dynasty. The word Tughlaq was not the name of any tribe or clan but was the personal name of Ghiyasuddin. He had to face enormous problems as a Sultan. There were riots in various parts of the empire and the royal treasury was empty. He pursued a policy of reconciliation with the nobles and the people who were severely restricted under Alauddin. He liberalized administration in certain respects. He gave up the practice of physical torture in case of economic offences and recovery of debts. He also discarded Alauddin's system of measurement of land for the assessment of land revenue. He attempted to improve the finances of the state and perused a policy to encourage agriculture. His twin object was to increase land under cultivation and improve economic condition of the cultivators. He took keen interest in the construction of canal for irrigation and formulated famine policy to provide relief to peasants in time of drought. The state demand of revenue was fixed between 1/5th and 1/3rd of the produce. He further instructed that the land revenue should not be enhanced more than 1/11th of the estimated produce.
He continued the system of Dagh and Chehra instituted by Alauddin. He built the fortified city of Tughlaqabad and gave a new touch to the architecture of the Sultanate period. In 1321 he dispatched the crown prince Jauna Khan to re-establish Sultan's authority in the south. He annexed Warangal. Madurai and Bengal.