Economy during Gupta Period

The period from fourth century to eighth century was a period of great agricultural expansion. The vast areas of land were brought under cultivation and improvements were made in the existing methods of production to attain higher yield.

One of the reasons for it was the practice of granting lands to brahmanas and secular officers in different areas. It helped in bringing virgin land under the plough. The spread of knowledge regarding the use of iron plough share, manure, irrigation and preservation of cattle wealth in backward areas also contributed to rural prosperity. It however brought no relief to peasants who continued to suffer tremendous tax burden.

The Gupta and post-Gupta period witnessed a comparative decline in country’s trade and commerce. Till AD 550 India continued to have some trade with the eastern Roman empire to which it exported silk, and spices. Around the sixth century the Romans learnt the art of rearing silk worms. This adversely affected India’s foreign trade in this precious commodity.

The disruption of north-western route by the Hunas was another factor for this decline. India tried to make up the loss by carrying on trade with south-east Asian countries but it did not help revive the economy substantially. The loss in trade lessened the inflow of gold and silver into the country. It is confirmed by a general scarcity of gold coins after the Guptas.

The Guptas did issue a large number of gold coins called dinaras. But we notice that the gold coins of each successive Gupta ruler, after Chandragupta II, contain less of gold and more of alloy. After the Guptas very few coins of Kings of different dynasties have been found. Thus, in the absence of coinage we can presume that a self-sufficient economic system with limited trade prevailed after the downfall of the Guptas.