Explain the stages of Indian economic history.

The stages of Indian economic history are:

(a)Pre-colonial phase:

a. The late colonial period witnessed the monetisation of the Indian economy.

b. During the pre-colonial period, villages were incorporated into wider networks of exchange through which agricultural products and other goods circulated.

c.There were many trading networks.

d. There was a great demand for the Indian spices and handloom products in Europe which made India one of the exporters.

d.It is also witnessed that the traditional trading communities such as Nakkartas had their own trading accounts. These were called as Hundis.

(b)Colonial phase:

a. The rural and urban areas witnessed dramatic social, cultural and economic changes.

b.This was due to the entry of commercial money into local agrarian economies and the incorporation into wider trading networks.

c. Land revenue was to be paid in cash;

d. Unlike the pre-colonial period, there was a steep decline in the Indian handloom industry as a result of which India became a supplier of raw material and a market for cheap manufactured goods. D. The existing business communities entered into trading alliances with the new entrants.

e. Those communities which were able to improve their position by re-orienting themselves to changing economic circumstances found new marketing opportunities.

e. The new trading communities which were able to make use of the improved market conditions dominated the markets.

(c)Post-independence phase:

a. Marwaris became a successful business community.

b. They also became moneylenders because of their wealth and their well established social relations.

Thus the Indian economy witnessed different changes in different phases.