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ECONOMY IN ANCIENT INDIA:FROM EARLY VEDIC PERIOD TO 712 A.D.
HISTORY

Submitted by:
Suyogaya Awasthy
2014127
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SEMESTER I
DAMODARAM SANJIVAYYA NATIONAL LAW UNIVERSITY
Visakhapatnam
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OCTOBER 2014

TABLE OF CONTENT

TITTLE | PAGE NO. | ACKNOWLEDGMENT | 4 | INTRODUCTION | 5 | SECTION TITLE * Economy: During Early Vedic Age * Economy: During Later Vedic Age * Economy: During Gupta Period * Economy: During Mauryan Period * Guild System:The base of Ancient Economic India | 7891012 | CONCLUSION | 19 | BIBLIOGRAPHY | 20 | |

ACKNOWLEDGEMENT
I have endeavored to attempt this project. However, it would not have been feasible without the valuable support and guidance of Dr.Vishwachandra Madasu. I would like to extend my sincere thanks to her.
I am also highly indebted to Damodaram Sanjivayya National Law University Library Staff, for their patient co-operation as well as for providing necessary information & also for their support in completing this project.
My thanks and appreciations also go to my classmates who gave their valuable insight and help in developing this project.

INTRODUCTION
Condition of Economy: Early Vedic to later Vedic period
The agriculture was the main economic activity of the people in the Vedic age but with the second urbanization a number of urban centers grew in North India. This gave a major fillip to trade and commerce.

Many of the Indian population resided in villages and the economy of the villages was self-sustaining. Agriculture was the predominant occupation of the populace and satisfied a village's food necessities. It also provided raw materials for industries like textile, food processing,crafts etc.Among farmers, other classes of people were barbers, carpenters. At towns and urban centers trade took place through coins but in villages barter was the main system of economic activities.

The system of castes and sub-castes ensured division of labor and functioned much like guilds, providing training to apprentices. The caste system restricted people from changing ones occupation and aspiring for an upper caste's lifestyle.Basically there was joint family system and the members of a family pooled their resources to invest in business ventures.

By the coming of Europeans in the 16th century trade and commerce was completely transformed. The Europeans concentrated mainly on spices, handicrafts, cotton etc.Among all the European powers the British proved most strong and drove their competitors out of India. Slowly and gradually the British acquired political supremacy and hold over India and subverted the Indian economy according to their own needs. The establishment of British rule in India the drain of wealth from India began. There was poor industrial infrastructure when the British left India.
Indus valley people practiced agriculture, domesticated animals, made tools and weapons from copper, bronze and tin and even traded with some Middle East countries. Economic history of India begins with the Indus Valley civilization. The Indus civilization's economy appears to have depended significantly on trade, which was facilitated by advances in transport. Around 600 BC, the Mahajanapadas minted punch-marked silver coins. The period was marked by intensive trade activity and urban development. By 300 B.C., the Maurya Empire united most of the Indian subcontinent. The political unity and military security allowed for a common economic system and enhanced trade and commerce, with increased agricultural productivity.For the next 1500 years, India produced its classical civilisations such as the Rashtrakutas, Hoysalas and Western Gangas. During this period India is estimated to have had the largest economy of the ancient and medieval world between until 17th century AD, controlling between one third and one fourth of the world's wealth up to the time of Maratha Empire from whence it rapidly declined during European colonization.

Economy: During Early Vedic Age
They had not developed a city civilisation and did not build in stone or brick.The Aryans were technically well-equipped. Their bronzesmiths were highly skilled and produced tools and weapons much superior to those of the Harappan culture. Bronzesmiths, carpenters and chariotmakers are frequently mentioned in the Rigveda with much respect.During the time of the composition of the Rigveda, the process of smelting iron was hardly known outside Anatolia where the Hittite kings tried to keep it a secret. Only at the very end of the second millenium BC did the use of iron begin to spread widely over the civilised world and it is very unlikely that it reached India before this time.

As expected of a people without cities the Aryans followed a mixed economy-pastoral and agricultural-in which cattle played a predominant part. Indeed, most of their battles were fought in search of cows-gavisthi. Cattle were in fact a sort of currency, and values were reckoned in heads of cattle, but they were not held sacred at this time. Both oxen and cows were slaughtered for food. The horse was almost as important as the cow. Though there are references to riding the horse is more frequently described as the motive power of the chariot a light chariot with two spoked wheels, drawn by two horses yoked abreast, carrying two warriors.

Among other domestic animals the Aryans knew the goat as well the sheep, which provided wool their chief textile. The elephant is only mentioned in late hymns, was rarely if ever, domesticated. A divine bitch Sarama, plays an important part in a legend but the dog did not mean as much to the people of the Rigveda as it did to a kindred Aryan pastoral people,who made it a sacred animal.

Agriculture, though important, seems to have been looked on as rather plebeian. Only one word is used for (corn-yava), which later meant barley but at this period may have implied all species of cultivated gram. There are references to ploughing, reaping ,irrigation for different seasons.

Economy: During later Vedic age
Aryans in the later Vedic period had progressed and prospered economically. Agriculture was the chief means of livelihood of the later Vedic people. The Aryans had come to know about iron but very few agricultural tools made of iron have been found. Heavy ploughs were made from it. Vedic texts refer that 24 oxen were used to drag heavy and large ploughs. During this time rice and wheat became their chief crops. Other agricultural products were barley, cotton ,various pulsesetc. In Vedic texts rice is also called as Vrihi. Cattle rearing was second important occupation of the Aryans. They domesticated camel, cow, ox, elephant,horse, goat, donkey,dog. The number of animals represented the wealth of the people. |
At this period cow-worship increased and slaughter of cow was prohibited. Various arts and craft developed during this period. Weaving was done by women only but on a wide scale. The people were acquainted with four types of pottery black and red ware, black slipped ware, painted grey ware and red ware. Other occupations of the Aryans were the goldsmith, leatherwork, the etc. Both internal and foreign trade had progressed. The Vedic texts refer to sea and sea voyages. This shows that now sea-borne trade was carried on by the Aryans. Money lending was a flourishing business. The references to the word Sreshthin indicates that there were rich traders and probably they were organized into guilds. The Aryans did not use coins but specific weights of gold were used for purposes of a gold currency Satamana, Nishka, Kosambhi, Hastinapur, Kashi and Videha were regarded as renowned trade centres. Bullock carts were used to carry goods on land. For foreign trade boats and ships were used.

ECONOMY: DURING GUPTA PERIOD

Economy: During Mauryan Period
During economy of Mauryan Empire was sound. They established a centralized government which contributed to the economic progress of the country. Agriculture was the principal backbone of Mauryan Economy. The cultivators were the most numerous classes. Land revenue was the principal source of state income.
Agriculture-The basic economy of Mauryan Empire was based on agriculture. Rice, pulse, vegetables, fruits etc. were grown. Land was intensively tilled with iron-sheared plough drawn by oxen. Irrigation tank and lakes were excavated by the state. Hunters were particularly employed to clear the jungle areas of wild animals so that such areas could be brought under cultivation.
Land Tax-The economy of Mauryan Government depended on the tax collected from the lands. Historians have suggested that one quarter of the produce was collected from fertile areas and tax at a lower rate was collected from less fertile areas.
Water tax-Apart from tax on land, the Mauryan empire depended collected several other items of taxes from land. They were water or irrigation tax from the area where water was supplied from rivers.
Industries- Mauryan made a bid in industrial growth. Megasthenes has pointed out that city boards tried to promote manufacture of industrial goods. The Jatakas mention 18 types of industries. Lower Bengal was famous for production of fine muslin and silk textiles. Gandhara was famous for wooden industry. Magadha specialized in iron and Rajputana for copper. Salt was produced in coastal Bengal and in the salt range of Punjab. Gold was produced in South India. Kautilya was aware of the importance of mines and he regarded the iron mines as one of the chief source of Magadha power.
The state controlled the mining and other industries. The state promoted industrial arts and the mines were brought under state ownership.
Private industries were too controlled, taxed and their prices were fixed. Some basic industries were state owned while others were left to private producer. There were capitalist producers too.
Artisan tax- The Mauryan government collected revenue from artisans, traders and laborers.
Trade Duty- The state revenue was also derived from tolls, octroi, etc. The city magistrates checked weights and measures and the sale of goods. Arthasastra also confirms the existence of such officers. They collected considerable revenue by taxing the traders.
Agriculture- The Arthasastra states that the king shall make pasture grounds from waste. Elephants were particularly reared with great care, as they were useful for warfare. Cow was the most important among the domestic animals. It was useful for dairy products and hide.
Craft and industry and guild system: The artisans and craftsmen paid tribute to the government. The artisans and craftsmen also used to form guilds. It was better to work in a body than to work individually. protected social status of the workers and gave them general security. It protected individual traders from competition.
Rise of big traders and capitalist class: In the Mauryan period the rise of big traders and merchants can be noticed. Money lending was a good business. The big traders used to borrow money for trade and paid interest.
Trade routes- Inland trade was carried by river route as well as by land route. The Ganges was a great trade route. Road transport greatly improved under the Mauryas. Pataliputra was linked by road to different parts of India even up to Taxila in the North-West. Taxila was a great centre of trade wherefrom goods were transported to Central Asia.

Conclusion

With the coming of Europeans in the 16th century trade and commerce was completely transformed. The Europeans concentrated mainly on spices, handicrafts, cotton clothes, indigo etc. Of all the European powers the British proved most strong and drove their competitors out of India. Slowly and gradually the British acquired political supremacy and hold over India and subverted the Indian economy according to their own needs. With the establishment of British rule in India the drain of wealth from India began. There was poor industrial infrastructure when the British left India.

. Thus the economy of ancient india from early vedic age to mauryan age was with lot of ups and downs.There were vast changes from time to time which sometimes proved to be best for Indian economy and sometimes the worst which led to depressions.The technological inventions helped the economy of india to build a new standard in the market of trade and commerce.Chanakya’s book on arthshastra’s gave a bery relevant system to deal with the problems with great solutions which were adopted by certain rulers and in modern world too.Therefore it had a positive as well as negative impact on the medival era.

BIBLOGRAPHY
To complete my project I took the help from following of the resources.

1)Ancient History of India:R.C Majumdar
2)Indian History:Mata Prasad
3)Advanced History of India:V.D Mahajan
4)E-Books;:From Archives.org
5)www.wikipedia.org
6)www.culturalindia.net
7)www.papers.ssrn.com