Economic history of India

The known economic history of India begins with the Indus Valley Civilisation (3300–1300 BCE), whose economy appears to have depended significantly on trade, which was facilitated by advances in transport. Around 600 BCE, the Mahajanapadas minted punch-marked silver coins. The period was marked by intensive trade activity and urban development. By 300 BCE, the Maurya Empire united most of the Indian subcontinent. The political unity and military security allowed for a common economic system and enhanced trade and commerce, with increased agricultural productivity. For the next 1500 years, India produced its classical civilisations such as the Rashtrakutas, Hoysalas and Western Gangas. During this period India is estimated to have had the largest economy of the ancient and medieval world between 1 CE until 16th century CE, controlling between one third and one fourth of the world's wealth up to the time of the Mughal and Maratha empires, from when it rapidly declined during European intervention.

Thanks to its prehistory as a trading zone and later the colonial status, colonial India experienced a deep economic integration with the world. Trade, investment and migration rose to higher levels than before. According to economic historian Angus Maddison in his book The World Economy: A Millennial Perspective, India was the richest country in the world and had the world's largest economy until the 16th century CE. According to the Balance of Economic Power, India had the largest and most advanced economy from 1 CE to 16th century CE, the most of any country for a large part of the last two millennia.

India has followed central planning for most of its independent history, which have included extensive public ownership, regulation, red tape, and trade barriers. After the 1991 economic crisis, the central government launched economic liberalisation. India has turned towards a more capitalist system and has emerged as one of the fastest growing large economies of the world.

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