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Krishnadeva Raya took various steps to make the Vijayanagar empire rich and prosperous like: 

1. He encouraged foreign trade with the Portuguese. 

2. He collected good revenue from them by imposing custom duties and other taxes. 

3. He took active steps to promote agriculture. 

4. Importance was given for increasing irrigation facilities by building dams and canals.

The Raichur Doab was a fertile area, that touched the southern boundary of Bahmani kingdom and northern boundary of Vijayanagar empire. This area become a battleground for both the kingdoms as each one wanted to rule over it because it was a rich source of revenue. It constantly passed on from one hand to another till finally the issue was finished after the defeat of Vijayanagar in the Battle of Talikota

Hampi, the capital of Vijayanagar, was a splendid city. It was surrounded by sevan walls and its total circumference was 96 kilometres (60 miles.) The streets were paved and well laid out. The city was studded with gardens, lakes, mansions and temples. Fresh sweet-scented flowers were sold in abundance. Everyone wore jewellery. Diamonds, rubies, pearls and emeralds were openly sold in crowded bazaars.

The Bahmani kingdom reached the height of its glory under the leadership of Mahmud Gawan.

North India was rocked by political turmoil and instability.

Krishnadeva Raya was a great patron of art and literature. He was himself a Sanskrit scholar and a good Telegu poet. He maintained a magnificent court and encouraged poets and learned men.

During the regin of Vijayanagar rulers forests were cleared to bring more land under cultivation. Many canals, irrigation tanks and dams were built to improve and develop agriculture.

The village administration was at the bottom of the administrative ladder. The old feudal system was revived and hereditary officers governed the village.

In the battle of Talikota the five kingdoms of Bijapur, Ahmadanagar, Berar, Golconda and Bidar formed an alliance against Vijayanagar kingdom and gave it a crushing defeat. Due to this battle the Hindu empire in the South was totally finished.