Understanding the Indian Economy from the Post-Reforms of 1991, Volume I

CHAPTER 1

The Economic History of India from the Paleolithic Period to 1200 CE

Taking into account the importance of understanding the Indian economy, knowledge of its history is essential. This chapter attempts to discuss the history of the Indian economy in ancient times. India is one of the oldest civilizations in the world, and its economic history is at least 5,000 years old, dating back to the Indus Valley Civilization (DeFrain and Asay 2012). Ancient India was a rich country until foreigners plundered it for several hundred years. But it has a history of a great economy due to its trade relations with foreign countries ranging from those in the Far East to Western Europe and Africa.1

The earliest periods of Indian history are known only ...