History

Timeline of the economy of India and India's economic history can be broadly divided into three eras, beginning with the pre-colonial period lasting up to the 17th century. The advent of British colonization began the colonial period in the 17th century, which ended with independence in 1947. The third period stretches from independence in 1947 until the present.

Pre-colonial

The Citizens of the Indus valley civilization, permanently and predominantly urban that flourished between 2800 BC and 1800 BC, practiced agriculture, domestic animals, used uniform weights and measures, made tools and weapons, and traded with other cities. Evidence of well planned streets, a drainage system and water supply revealed their knowledge of urban planning, which included the world's first urban sanitation systems and the existence of a form of municipal government.

Silver coin minted during the reign of the Gupta king Kumara Gupta I (AD 414–55) The 1872 census revealed that 99.3% of the population in the region that is now India has resided in villages , whose economies are largely isolated and self-sustaining, with agriculture the main occupation. This satisfied the dietary needs of the village and provide raw materials for hand-industries, such as textiles, food processing and handicraft. Although many kingdoms and the leaders issued coins, barter was widespread. Villages paid part of their agricultural products as revenue in power, while its artisans have received a portion of the crop at harvest for their services. The religion, especially Hinduism and the caste system and the joint family systems, played an influential role in shaping economic activities. The caste system has functioned much like medieval European guilds, ensuring the division of labour, providing for the training of apprentices and, in some cases, allowing manufacturers to achieve narrow specialization. For example, in some areas, producing each variety of cloth was the speciality of a particular sub-caste.

Estimates of the per capita income of India (1857–1900) as per 1948–49 prices. Textiles such as muslin, Calicos, shawls, and agricultural products such as pepper, cinnamon, opium and indigo were exported to Europe, the Middle East and South East Asia in return for gold and silver.