Abstract

This paper analyses various aspects of the Indian economy during the early historical period, particularly from the sixth century BCE to the third century BCE in the Buddhist period. During this period, the centre of major economic activity shifted towards the Gangetic plains. Agricultural expansion, surplus production, development of crafts and commerce, the emergence of guilds and the beginning of a monetary economy played important roles in economic transformation. Increased surplus production created favourable conditions for urbanization and the emergence of regional states. The development of a complex agricultural and socially stratified society also resulted in social inequalities. The emergence of a monetary economy facilitated exchange and brought qualitative changes in commercial activities.