The earliest form of the theatre of India was the Sanskrit theatre. It flourished sometime between the 2nd century BCE and the 1st century CE and flourished between the 1st century CE and the 10th, which was a period of relative peace in the history of India during which hundreds of plays were written. With the Islamic conquests that began in the 10th and 11th centuries, theatre was discouraged or forbidden entirely. Later, in an attempt to re-assert indigenous values and ideas, village theatre was encouraged across the subcontinent, developing in a large number of regional languages from the 15th to the 19th centuries. Modern Indian theatre developed during the period of colonial rule under the British Empire, from the mid-19th century until the mid-20th. In order to resist its use by Indians as an instrument of protest against colonial rule, the British Government imposed the Dramatic Performances Act in 1876. From the last half of the 19th century, theatres in India experienced a boost in numbers and practice. After Indian independence in 1947, theatres spread throughout India as one of the means of entertainment. As a diverse, multi-cultural nation, the theatre of India cannot be reduced to a single, homogenous trend. In contemporary India, the major competition with its theatre is that represented by growing television industry and the spread of films produced in the Indian film industry based in Mumbai (formerly Bombay), known as "Bollywood". Lack of finance is another major obstacle.
The earliest-surviving fragments of Sanskrit drama date from the 1st century CE. The wealth of archeological evidence from earlier periods offers no indication of the existence of a tradition of theatre. The ancient Vedas (hymns from between 1500 and 1000 BCE that are among the earliest examples of literature in the world) contain no hint of it (although a small number are composed in a form of dialogue) and the rituals of the Vedic period do not appear to have developed into theatre. The Mahābhāṣya by Patañjali contains the earliest reference to what may have been the seeds of Sanskrit drama. This treatise on grammar from 140 BCE provides a feasible date for the beginnings of theatre in India.