This period marked significant transformations in the Indian subcontinent's economic and societal structures, characterized by a shift from urban to rural centres, a decline in trade, and an increase in agrarian-focused economy.

Causes of Trade Decline

1.Reduction in Foreign Trade: The lucrative trade with the Roman Empire, Central Asia, and Southeast Asia suffered setbacks. The inflow of Roman gold ceased and political instability, including invasions like those of the Hunas, disrupted remaining international trade routes.

2.Internal Trade Barriers: Frequent political conflicts, the decentralization of authority, and the rise of intermediary landlords who levied high taxes led to a reduction in internal trade. Trade links between towns and between towns and villages weakened, leading to a diminishing urban economic base.

Urban Decay

Shift to Rural Economies: As the economic focus shifted towards agrarian self-sufficiency, urban centres, which thrived on trade and commerce, began to decline. The urban infrastructure received less investment and attention from the rulers who were more focused on rural and agrarian advancements.

Nature of Land Grants