Economic Disruption due to Political Instability

1.Fragmentation Post-Mughal Era: The disintegration of the Mughal empire in the 18th century led to political fragmentation, giving rise to continuous conflicts among rival Indian princes. This period of incessant warfare disrupted economic stability and growth.

2.Impact on Agriculture and Trade: Wars and the emergence of new agents of pillage adversely affected cultivation. The safety of roads deteriorated, impacting trade due to the excessive demands for customs and tolls.

3.European Influence: European trading companies, notably the British East India Company, exploited the administrative confusion for their gain. Their involvement in politics exacerbated the economic disruption.

Self-Sufficient Village Communities

1.Economic Autarky: Indian villages were largely self-sufficient, producing most of what they needed. This self-subsistence extended to foodstuffs, with some exceptions like salt and iron, and was supported by a blend of agriculture and handicrafts.

2.Communal Land Ownership: Reflecting a form of communalism, land in the village was collectively owned by the cultivating community, with families having their share of arable land. The concept of private property in land, as understood today, was absent.

3.Village Governance: Villages were self-governing entities with a village panchayat to administer affairs and settle disputes. The local chief or distant subahdar claimed a share of the crops but seldom interfered in other village matters.