Due to its geographical location, Punjab became a major center of trade. In the Middle Ages, due to the growth of domestic and foreign trade in Punjab, many large towns came into existence. What
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The European scholars who reconstructed early Indian history in the 19th century regarded it as essentially static and Indian society as concerned only with things spiritual. Indologists, such as the German Max Müller, relied heavily on the Sanskritic tradition and saw Indian society as an idyllic village culture emphasizing qualities of passivity, meditation, and otherworldliness. In sharp contrast was the approach of the Scottish historian James Mill and the Utilitarians, who condemned Indian culture as irrational and inimical to human progress. Mill first formulated a periodization of Indian history into Hindu, Muslim, and British periods, a scheme that, while still commonly used, is now controversial. During the 19th century, direct contact with Indian institutions through administration, together with the utilization of new evidence from recently deciphered inscriptions, numismatics, and local archives, provided fresh insights.