Before the British era, 85 per cent of the population was dependent upon agriculture only. There were three classes in village- farmers, artisans and servants. Among these, the status of farmers was the highest. Farmers used to allot their portion of work to other people and gave them wheat in return. India exported cotton and silk textiles, rice, jute, sugar, spices etc. and received gold in return. Before British era, every Indian village was prosperous and self-reliant in political, social and economic aspect. Agriculture was the main source for income for the government and livelihood of the people.

Indian agriculture was sufficiently developed and farmers were mostly skilled in agricultural activities and productivity of land was high, and the land produced gold in the form of food grains. That is why the Indian Economy was called “The Golden Bird” and this was the reason that foreign traders kept coming to India for trade. British East India Company also came for trading but soon formed India its colony by interfering politically. The Britishers’ main objective was to make India an exporter of raw materials for the rapidly growing industries of England. As a result, the economy of India declined rapidly.