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Early Indian Economy

Senthuran

Indian economy in the early period was a self-sufficient economy comprising of several villages. Indian villages produced and met their requirement according to division of labour and their economic activity was restricted to village economy. Barter system prevailed as an exchange mechanism. Basically, the primary activity was agriculture. Other services like carpentry, weaving, hair dressing, etc. were offered by labourers who extended their services based on hereditary. They received their wages as food products. In short, Indian villages functioned as an independent republics and the only interference was from the King for whom they paid taxes in kind. Thus, India had happy villages.

 

Prior to the British rule, religion, system of the society and kings law influenced the economy to a great extent. There prevailed caste system which decided the division of labour for the benefit of the society’s economy. Further, the prevalence of joint-family system helped them to pool their resources for their individual family benefit and also for the benefit of the society. Another advantage of the joint-family system was that the cultivable lands were not fragmented, yielding to better economic gains.

 

Another influencer of early Indian economy was the Hindu religion. The religious centres also functioned as Indian trade centres. For example, major pilgrimage spots like Nasik, Allahabad, Varanasi, etc. also functioned as centres of commerce and trade. Many trade and commerce activities were linked to the religious festivals and functions. In short, the Hindu religion acted as an indirect catalyst for the Indian economy.

 

One of the major industries in early India was textile. Handicrafts were also part of the Indian industrial activity. Indian textile products like shawls, dhotis, dopattas, woolen products, cotton goods, etc. and handicraft products were exported to overseas markets, such as Egypt, South East Asia, Greece, etc. It is worth noting that when Europe (birth place of modern industrialism) was inhabited by uncivilised people, India was very popular for its craftsmanship and rich economy.