how was our enconomy in ancient time
Answers
The economic history of India begins with the Indus Valley Civilization (3300–1300 BC), whose economy appears to have depended significantly on trade and examples of overseas trade, notable being Indus-Mesopotamia relations. The Vedic period saw countable units of precious metal being used for exchange. The term Nishka appears in this sense in the Rigveda.[1] Later Vedic period began codifying the ancient Indian population based on caste, a social stratification which created a hierarchy of priests (Brahmins), warriors (Kshatriyas), merchants (Vaishyas) and laborers (Shudras).[2]
Around 600 BC, the Mahajanapadas minted punch-marked silver coins. The period was marked by intensive trade activity and urban development. By 300 BC, the Maurya Empire had united most of the Indian subcontinent. The resulting political unity and military security allowed for a common economic system and enhanced trade and commerce, with increased agricultural productivity.
The Maurya Empire was followed by classical and early medieval kingdoms, including the Cholas, Guptas, Western Gangas, Harsha, Palas, Rashtrakutas and Hoysalas. During this period, Between 1 CE and 1000 CE, the Indian subcontinent is estimated to have accounted for one-third, to one-fourth of the world's population, and product, though GDP per capita was stagnant. According to the Balance of Economic Power, India had the largest and most advanced economy for most of the interval between the 1st century and 18th century, the most of any region for a large part of the last two millennia.[3]
India experienced per capita GDP growth in the high medieval era after 1000 CE, during the Delhi Sultanate in the north and Vijayanagara Empire in the south, but was not as productive as 15th century Ming China until the 16th century.[4][5]
After the decline of the Mughal Empire, Mysoreans embarked on an ambitious economic development program that established the Kingdom of Mysore as a major economic power, with some of the world's highest real wages and living standards in the late 18th century.[6] During this period, Mysore overtook the wealthy Bengal Subah as India's dominant economic power, with highly productive agriculture and textile manufacturing.[7] Mysore's average income was five times higher than subsistence level at the time.[8] The Maratha Empire also managed an effective administration and tax collection policy throughout the core areas under their control and extracted chauth from vassal states.[9]
India experienced deindustrialisation and cessation of various craft industries under British rule,[10] which along with fast economic and population growth in the Western World resulted in India's share of the world economy declining from 24.4% in 1700 to 4.2% in 1950,[11] and its share of global industrial output declining from 25% in 1750 to 2% in 1900.[10] Due to its ancient history as a trading zone and later its colonial status, colonial India remained economically integrated with the world, with high levels of trade, investment and migration.[12]
The Republic of India, founded in 1947, adopted central planning for most of its independent history, with extensive public ownership, regulation, red tape and trade barriers.[13][14] After the 1991 economic crisis, the central government launched economic liberalisation, allowing it to emerge as one of the world's fastest growing large economies.[13][15]