Pre colonialperiod of Indian Economy(upto 1773) : -

India in the pre-colonial period had a stable economy. Self-sufficient agriculture, flourishing trade and rich handicraft industries. Subsistence farmers, organized in small village communities carried on agricultural operations in India.The corporate form (e.g.-sreni) was being used in India from at least 800 BC and was in more or less continuous use since then until the advent of the Islamic invasions around 1000 AD. The use of sreniin ancient India was widespread including virtually every kind of business.The citizens of the Indus Valley civilization, a permanent settlement that flourished between 2800 BC and 1800 BC, practiced agriculture, domesticated animals, used uniform weights and measures, made tools and weapons, and traded with other cities. In spite of the fact that the Indian villages were largely self-sufficient units and the means of communication were primitive, India enjoyed extensive trade both within the country and with other countries of Asia and Europe. A balance of the imports and exports was maintained. The items imported into India were pearls, wool, dates, dried fruits and rosewater from the Persian Gulf; coffee, gold, drugs and honey from Arabia; tea, sugar and silk from China; gold, musk and woolen cloth, metals like copper, iron and lead, and paper from Europe. The main items exported from India were cotton textiles. Besides cotton textiles, which were famous throughout the world, India also exported raw silk, indigo, opium, rice, wheat, sugar, pepper and other spices, precious stones and drugs. Maritime trade was carried out extensively between South Indiaand southeast and West Asia from early times until around the fourteenth century AD. Both the Malabar and Coromandel Coasts were the sites of important trading centers from as early as the first century BC used for import and export as well as transit points between the Mediterranean region and Southeast Asia. Trading from India to West Asia and Eastern Europe was active between 14th and 18th century. During this period, Indian traders had settled in Surakhani, a suburb of greater Baku, Azerbaijan. These traders had built a Hindu temple, now preserved by thegovernment of Azerbaijan. Most overland trade was carried out via the Khyber Pass connecting the Punjab region with Afghanistan and onward to the Middle East and Central Asia. Although many kingdoms and rulers issued coins, barter was prevalent. Villages paid a portion of their agricultural produce as revenue to the rulers, while their craftsmen received a part of the crops at harvest time for their services. The Mughal economy functioned on an elaborate system of coined currency, land revenue and trade. Gold, silver and copper coins were issued by the royal mints which functioned on the basis of free coinage. Sean Harkin estimates China and India may have accounted for 60 to 70 percent of world GDP in the 17th century.