Indus Valley Civilization-

The Indus Valley Civilization was a Bronze Age civilization that extended from present-day
north-west India to north-east Afghanistan and Pakistan. Archaeological evidence from the
civilization hints at the existence of an egalitarian form of government that coordinated the
interests of various groups, enabled mobilization of labour and facilitated collective action, thus
helping produce a wide range of public goods, such as water infrastructure, large public
buildings and urban planning, all of which allowed Indus cities to grow and thrive.1

Public Works-

Mohenjo-Daro and Harappa, two largest cities of the civilization, were home to the world's first
known "sanitation systems" - they both had city-wide sewer networks. Further, wells, some as
deep as 20 meters, to store and supply water to private and public homes and earthlinks to
prevent the Indus river’s annual flooding spanned both cities. Additionally, the first public water
tank in ancient India, the ‘Great Bath’ in Mohenjo-Daro, is believed to have been used for
special rituals or ceremonial baths. Besides, the Harappan city of Shortughai in present-day
Afghanistan provides evidence of the existence of channels while Dholavira has yielded
evidence of reservoirs.

Almost every city in the civilization maintained a system of granaries, one of the biggest of
which was unearthed in Mohenjo-Daro. Existence of massive granaries in each city signals the
fertility of the Indus River valley soil, owing to rain and annual flooding of the Indus River.2
Seals discovered from the site also provide evidence of tilled fields and clay scriptures point to
people’s familiarity with employing bulls and oxen for ploughing. The valley’s inhabitants
cultivated two different crops simultaneously and irrigation of crops necessitated the
construction of canals and wells.3

Indus valley inhabitants also domesticated a variety of animals such as horses implied by the
discovery of horse bones at Surkotda. Discovery of various bronze and copper equipment
indicates metal work was the major profession of city dwellers; other occupations included

1
Adam S. Green, “Of Revenue without Rulers: Public Goods in the Egalitarian Cities of the Indus Civilization”, 2022
2
Sabahuddin and Shukla, History of Ancient Indian Economy, 81–85
3
Mehta and Mehta, History of Ancient India, 98-100
spinning, pottery, and weaving.4 The barter system of exchange prevailed in the economy. A
standardized system of weights and measures was in place, evidenced by use of a standard ratio
for making bricks for construction of buildings.5

Trade-

Lothal, the earliest and most important sheltered harbor, was developed into a large emporium
and servicing station. By providing access to the hinterland and the possibility of controlling the
sources of raw materials, the sheltered harbour attracted seafaring merchants to the valley
who made a peaceful penetration, mingled with local inhabitants, and established inland stations
at Koth, Rangpur and Rojdi. This initial colonization took place in the latter half of the third
millennium B.C. The second wave began in the second millennium as a result of a catastrophic
flood in the Indus and other rivers which destroyed most towns and villages and forced
inhabitants to move to safer regions. Some refugees from the lower reaches of the Indus migrated
to Kitch and Kathiawar and temporarily settled at Todio, Kindarkhera, Prabhas, Kanjetar,
Mehgam, and other estuarine ports. These are termed ‘late Harappan’ ports as distinct from
‘early Harappan’ ports as Lothal and Bhagatrav.

Situated at the mouth of the Gulf of Cambay in the estuary of the Sabarmati and Bhogawa
rivers, Lothal also served as a warehouse of the rich rice-, cotton- and wheat-growing hinterland.
Todio was a small port on the southwestern coast of Kutch which sheltered the ships plying
between the Indus estuary and the Gulf of Cambay in the second millennium B.C. Amra and
Lakhabawal near Jamnagar on the northwestern coast of Kathiawar, Kindarkhera near
Porbander, Prabhas (Somnath) near Veraval, and Kanjetar near Kodinar were on the main trade
route. Farther south were Megham and Bhagatrav, situated respectively at the mouths of rivers
Narmada and Kim.

The non-availability of fine-grained siliceous stones in the alluvial belts of the Indus and
Sabarmati Valleys necessitated their import from elsewhere. Mohenjo-Daro imported agate from
the Narmada Valley while Chanhu-Daro and Lothal, two important centers for bead-making,
imported agate and carnelian. In addition to bead factories, workshops of coppersmiths have
been excavated at Lothal. The occurrence of bun-shaped ingots with 96.46% to 99.8% purity at

4
Mehta and Mehta, History of Ancient India, 107–09
5
Mehta and Mehta, History of Ancient India, 101–02
Mohenjo-daro and Lothal suggests that copper was imported from overseas sources, among
which may be counted Susa and Oman. The recovery of a shipwreck, which included copper and
bronze ingots of oxide and bun-type in its cargo, by the University Museum expedition near
Cape Gelidonya off the Turkish coast suggests that there was far-flung trade in copper as late as
the latter half of the second millennium B.C. 

The principal exports of Lothal were ivory, shell inlays and ornaments, beads of gemstones and
steatite. Moreover, Bhal, the alluvial flat where Lothal is situated, has long been famous for its
cotton. Occurrence of elephant tusks and femurs at Lothal indicates that the animal was reared at
the site and confirms that it was an important center for ivory-working. Minute details of
elephant anatomy depicted on sealings further evidence intimate knowledge of the animal.
Among the more significant artifacts of foreign origin found at Harappan sites are hut-shaped
and compartmented steatite vessels, a bronze amulet with a couchant bull figure reminiscent of
those from Susa, and pins of copper of bronze with animal- or bird-heads. Lothal has also
produced two beautiful copper dogs one of which closely resembles one from Susa. Ceramic
goods are also of considerable importance - discovery of the terracotta head of a bearded man
with Sumerian features at Lothal hints at its contact with the West. Two terracotta figurines, one
resembling a gorilla and the other a mummy found at Lothal, demonstrate trade regulations
between Egypt and Kathiawar. The Kathiawar coast also abounds in conch shell. The raw
material and rejected pieces of shell found in the factories outnumbered the finished products,
implying that shell was worked for export.6
Historians have propounded different theories to explain the fall of the Indus Valley Civilization.
Some believe it was destroyed in a war while others explain the collapse as a result of change in
geography. The fall of the Indus civilization was followed by the Vedic age.

VEDIC TEXTS-
Although separated in time and space and against popular perception, practical observations,
societal laws, and thoughts on economic matters were written in ancient Indian literature as
much as other worldly concerns.
 

6
S.R. Rao, “Shipping and Maritime Trade of the Indus People”, Vol. 7, Issue 3
Vedic Age-
Occupation-The economy was agro-pastoral in nature. Barley and wheat were the major
products while paddy was produced on a limited scale. Oil seed and cotton were also
cultivated. “Urbara” or “kshetra”, the cornfield, was cultivated using bullock-drawn ploughs and
manure and irrigation systems were employed. Vedic hymns were composed in honor of Gods
and Goddesses to pray for good harvest, timely rainfall and well-being of domestic animals. The
cow was revered as a source of wealth and economic prosperity and cattle rearing was an
important profession. ‘Gauda’ and ‘Gopa’ were in charge of daily pasture-feeding of cattle.
Animals like horse, dog, donkey, goat etc. were stamped by their owners for identification
among large herds of cattle.7
Trade- Trade and commerce was an important feature of the early Vedic economy where
internal and external trade were equally important. One finds special prayers to achieve fortune
through maritime activities in the Rig Veda. Merchants known as Pani controlled and regulated
business activities. The commercial nature of Aryans’ activities can be inferred from Vedic
descriptions of their sea voyages and trade activities. There also existed a robust transportation
system wherein horse- or bullock-drawn chariots were used on land while boats and ships for sea
voyages, reflecting an advanced economy.8 The trade between Ancient India and the Persian Gulf
(Lower Mesopotamia) was conducted via Makran coast at Sutkagan Dor. Sea-going vessels were in
use, as confirmed by seals showing ships with Disha-kaka (land-finding birds), dating to 2500 BCE-
1750 BCE.9  Thus, the economy was driven by foreign and domestic trade.

Later Vedic Age-

Economic Life: The later Vedic age witnessed, along with rise in population and increase in the
number of Aryan settlements, an economic upswing. This was a result of the discovery of new
professions.
Agriculture: Agriculture gained importance. A variety of crops began to be cultivated in the
fertile Gangetic valley. The modes of cultivation improved - an instance being employing of 24
bullocks in each plough for using heavy ploughs. Different metals, weapons, ornaments,
agricultural implements along with various tools for work and other equipment began to be used.
7
Purshottam Lal Bhargava, “India in the Vedic Age”, p. 159
8
Moti Chandra, “Trade and Trade Routes in India”, p. 33
9
Nikhil Chandwani, “Connections between Ancient India and Ancient Mesopotamia”, June 21, 2021
Trade and Commerce: The volume of trade and commerce increased as a result of expansion of
Aryan settlements and the rise of large kingdoms. Roads and communication systems began to
develop. The Atharva Veda mentions different types of roads - ordinary paths for walking, wider
roads for bullock carts and better roads for swift-running chariots. Boats were commonly used as
trade relations between distant lands on river banks developed rapidly. Notably, Aryans ventured
into the seas for external trade for the first time during this age.
Cottage Industry: The art of weaving improved drastically as a wide variety of clothes were
made to meet new social demands. The demand for gold shot up as people amassed wealth.
Goldsmiths became more proficient than ever as ornaments were made in new designs at a larger
scale. Pottery developed as blacksmiths enlarged the scope of their work to meet new demands.10

10
Anamika Kumari, Magadh University, “The Later Vedic Period”