India was a simple subcontinent before its introduction to the West. On the eve of the British conquest of India, it was characterized by lot of disruption and economic fragmentation. The gradual downfall of the Mughal Empire during the 18th century had led to economic disintegration and the constant bouts of conflict amongst the Indian princes hastened economic disruption. As the British appeared in the political scenario there was considerable increase in the oppression and plunder. India was characterized by a village economy with the existence of self governing and self sufficient village communities. In essence, on the eve of the British rule Indian villages operated as self contained communities that did not have much to do with the outside world. An important characteristic of the village economy pertained to the amalgamation of the agricultural and cottage and handicrafts industry. When agriculture did not provide adequate means of livelihood, peasant families engaged in secondary activities such as weaving and spinning. Most of the economic needs in villages were fulfilled by village craftsmen such as blacksmiths, potters, goldsmiths, and carpenters who were part of the village economy. For rendering their services they received a share of the agricultural crops. Land relationships were governed by usage and customs and there was no practice of land ownership. The villages had their own system of governance by way of autonomous bodies. The village panchayats were responsible to settle all disputes and to administer village affairs. However the practice of self sufficiency maintained in the rural sector had become barriers for the mobility of labour and for the creation of new markets due to which there was economic stagnation and prosperity was missing. There was a lack of national consciousness amongst the villagers due to being aligned from the nationalist movements. Hence on the eve of the British entry into India, the villagers who comprised of the majority population suffered from economic blockades and were totally alienated from the mainstream. The urban economy was however much brighter in terms of economic prosperity. The major industries were cotton in Gujarat and Bengal, silk fabrics in Agra, Lahore and Murshidabad, carpets and woollen shawls of Lahore, Agra and Kashmir, which were all in good demand in the subcontinent as also in other areas of the world. In addition to the trade in gold and silver other metals were also predominant and the transactions in these metals developed the banking system within the country. However there were certain socio economic restraints like the prevalence of feudal classes and the system of interest that hampered economic advancement. India was not a stable country politically during the period 1100 to 1700 in view of the plundering strategies of Muslim invaders. Mahmud Gazni and Ghori went on looting sprees and inflicted extreme mayhem on the people. Despite the plundering, the economy continued to be prosperous and the subsequent Turk and Afghan rulers did not disturb the landowners, financiers and merchants in conducting their activities but collected their revenue by using force and taxing on land. It was during Akbar’s time during the 1560s that a sy