Indus Valley Civilisation
The Indus Valley Civilisation was one of the earliest urban civilizations in the world. It flourished between 2800 BCE and 1800 BCE in regions that are now part of India and Pakistan. The people of this civilisation had a well-developed economic system based on agriculture, animal domestication, trade, and craft production.
People cultivated crops, domesticated animals, and produced tools and weapons. They also used uniform weights and measures, which shows that trade and commercial activities were well organized. Evidence suggests that people traded goods with other cities and regions.
Archaeological findings show that cities such as Harappa and Mohenjo-daro had well-planned streets, drainage systems, and water supply facilities. These features indicate advanced knowledge of urban planning and sanitation, including what are considered the first known urban sanitation systems. This also suggests the existence of a form of municipal administration or local governance.
Maritime Trade on the West Coast
India was actively involved in maritime trade from very early times. Trade between southern India, Southeast Asia, and West Asia continued for many centuries and remained important until around the fourteenth century CE.
The Malabar Coast and the Coromandel Coast became major trading centres from as early as the first century BCE. These ports were used for imports, exports, and as transit points connecting the Mediterranean region with Southeast Asia.
Over time, merchants organized themselves into trading associations or guilds, which received support and patronage from the state. However, by the thirteenth century CE, this state support for overseas trade declined. After that, international trade activities were largely handled by Parsi, Jewish, Syrian Christian, and Muslim merchant communities, first on the Malabar Coast and later on the Coromandel Coast.
Trade Through the Silk Route
Apart from sea trade, India also had strong land-based trade connections with West Asia and Eastern Europe. Several scholars suggest that trade between these regions and India was active between the fourteenth and eighteenth centuries.
During this time, Indian traders settled in Surakhani, a suburb of present-day Baku in Azerbaijan. These traders built a Hindu temple, which indicates that Indian merchants were active and prosperous in international trade by the seventeenth century.
Inland and River-Based Trade
In addition to international trade, domestic trade within India was also well developed. The Saurashtra coast and the Bengal coast were important centres for maritime commerce.
The Gangetic plains and the Indus Valley also became major centres of river-based trade, where goods were transported using river routes.
Most land trade routes passed through the Khyber Pass, which connected the Punjab region with Afghanistan, and further linked India with Central Asia and the Middle East.
Currency and Barter System
Many kingdoms and rulers issued coins to support trade and economic activities. For example, silver coins were issued during the Maurya Empire (3rd century BCE) and later during the Gupta dynasty (5th century CE).
However, despite the use of coins, the barter system was still widely practiced, especially in villages. Farmers usually paid a portion of their agricultural produce as revenue or tax to the rulers. In return, craftsmen and service providers received a share of the crops during harvest time as payment for their services.