Indian Economy on the Eve of British Conquest
Broad Economic Character
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18th-century India possessed a diversified economy combining agriculture, handicrafts, internal trade and long-distance commerce.
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The village community formed the basic economic unit in large parts of rural India and was broadly self-sufficient in meeting local requirements.
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Rural production rested mainly on two interlinked activities:
- agriculture;
- handicrafts and household industries.
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India was not merely a producer for domestic consumption; it was also a major exporter of agricultural produce and manufactured goods, particularly textiles.
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Indian manufacturing was internationally recognised, with textiles forming the most important branch of production.
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Industrial activity was not sharply separated into urban factories and rural production zones; much manufacturing remained connected with villages and small production centres.
Village Economy
- Agriculture and handicrafts constituted the two major pillars of the rural economy.
- Important rural products included: