History of Indian Economy

The history of India starts with the Indus Valley civilization, which thrived from 3500 BC to 1800 BC. This civilization relied heavily on trade, supported by advancements in transport. People practiced agriculture, domesticated animals, and created tools and weapons from metals like copper, bronze, and tin. They traded items like terracotta pots, beads, and precious stones, and used ships for trade with Mesopotamia, selling gold and jewelry. By 600 BC, silver coins were minted in the Mahajanapadas, a period marked by active trade and urban growth. By 300 BC, the Maurya Empire unified most of India, allowing trade and agriculture to flourish. The empire invested in roads and infrastructure, boosting trade with improved security and standardized measurements. Over the next 1500 years, India produced rich civilizations and was estimated to have the largest economy in the ancient and medieval world, controlling a significant portion of global wealth between the 1st and 17th centuries AD.

During the Mughal period (1526–1858 AD), India experienced great wealth, contributing around 25.1% of the world economy in the 16th century. Emperor Akbar’s treasury earned £17.5 million annually, outshining Great Britain two centuries later. By 1700 AD, the Mughal Empire’s revenue surpassed £100 million. However, the 18th century saw the start of British rule, which turned India from an exporter of goods to a supplier of raw materials, hurting the economy and leading to famines and low life expectancy. After gaining independence, India began rebuilding its economy through centralized planning and Five Year Plans, focusing on infrastructure and industry. Economic growth improved in the 1980s, and post-1991 liberalization reforms led to steady GDP growth. India has become a global leader in several sectors and is expected to significantly increase its share of world GDP in the coming decades.