Economic and Political Life during the 6th Century BCE
– The Age of Transition Towards Early Historic India
Introduction: Why is 6th Century BCE Considered a Turning Point?
As you land in the 6th century BCE, you will notice a transformation—not a sudden revolution, but a steady, deep shift in how people lived, produced, governed, and thought.
This period is a watershed moment—like a doorway from ancient tribal societies towards more complex urban and political systems. Why?
Because in this era, we see multiple parallel developments:
- New towns start emerging
- Iron technology becomes widespread
- Agricultural production increases, creating food surplus
- Trade and crafts flourish, especially in urban centres
- The first coinage systems begin to circulate
- Professional armies and tax collection systems evolve
- Most importantly, new political structures like Mahajanapadas rise
- And this is also the time when Buddhism and Jainism emerge, challenging the Vedic orthodoxy
In short, this was an era of economic prosperity, political consolidation, and intellectual revolution.
Mahajanapadas: Rise of Early States
Let’s understand the political aspect first.
Before this period, India was largely divided into small, clan-based tribal groups. But around the 6th century BCE, many of these clans merged or were conquered, leading to the rise of larger territorial units called Mahajanapadas.
📌 What are Mahajanapadas?
- The word Mahajanapada literally means “great territory” or “great people”.
- Buddhist and Jain texts mention 16 Mahajanapadas (though the list may vary).
- Some of the most frequently mentioned Mahajanapadas are:
Magadha, Koshala, Vajji, Avanti, Gandhara, Kuru, Panchala, etc.
📌 Governance:
- Most Mahajanapadas were monarchies, ruled by a single king.
- But some were oligarchic republics, called Ganas or Sanghas, where power was shared.
📌 Fate of Mahajanapadas:
- With time, weaker Mahajanapadas got absorbed into stronger ones.
- For example, Kosala absorbed Sakya and Kashi ganas.
- By mid-6th century BCE, only four major kingdoms remained:
Vatsa, Avanti, Kosala, and Magadha. - Eventually, Magadha emerged victorious, laying the foundation of the first Indian empire.
Fortified Capital Cities: Seats of Power
Each Mahajanapada had a capital city, and these were often fortified with huge walls and gates.
🛡 Why Fortify Cities?
- Protection from enemy attacks
- Symbol of power and prosperity
- Control over the urban population
So, a capital was not just an administrative hub—it was a military, economic, and ideological centre of the state.
Ganas or Sanghas: Early Republics of India
Now let’s turn to a fascinating political experiment — the Gana-Sanghas.
🔍 What were they?
- These were oligarchic republics—meaning, not ruled by one king but by a group of rulers.
- Each ruler was called a Raja, and decision-making was collective.
For example, the Lichchhavis had 7,707 rajas, according to Buddhist texts. Imagine a modern-day parliament with thousands of MLAs—all of whom are rulers!
Examples:
- Shakyas of Lumbini (Nepal) – clan-based republic
- Vajji Sangha – an alliance of eight clans, including the Lichchhavis
🧠 Nature of Governance:
- They conducted rituals and governance collectively.
- Important matters were discussed in a Public Assembly, where debates took place, and if consensus failed, decisions were taken by majority vote.
- However, this system was not fully democratic—because:
- Only tribal representatives or family heads could participate
- Women, Dasas, and Kammakaras (labourers) were excluded
Role of Buddhist and Jain Texts
Buddhist and Jain literature highlights the Ganas much more than Hindu texts. Why?
- Buddha was born in the Shakya gana
- Mahavira belonged to the Vajji sangha
- Brahmanas did not accept such republics, as they had no influence in these systems. Their law-books ignore them.
Despite this, many gana-sanghas lasted nearly 1000 years, until they were eventually absorbed by the Gupta Empire.
Monarchy vs. Gana/Sangha: A Comparison
Feature | Monarchy | Gana / Sangha (Republic) |
Region | Mostly in Gangetic Plain | Mostly in Northwestern India (Indus basin, Himalayan foothills) |
Ruler | Single king not accountable to anyone | Many rajas accountable to the Assembly |
Revenue | King claimed all revenue from peasants | Each raja had independent authority over his area |
Military | One central army, no private armies allowed | Each raja had his own little army under a Senapati |
Brahmanical Role | High influence of Brahmanas | Minimal or no role for Brahmanas |
Emergence of New Cities
Urban Revival: The Second Urbanisation
Let’s begin by imagining India after the decline of the Harappan civilisation (c. 1900 BCE). What happened next?
For nearly 1,500 years, India saw a return to village-based life. Archaeological records show no signs of urban centres. This period is called the Post-Harappan rural phase.
But around the 6th century BCE, towns re-emerged. This phase is known as the Second Urbanisation in Indian history.
🔍 What is Second Urbanisation?
- It refers to the reappearance of cities after the long rural phase post-Harappa.
- These new towns emerged mainly in the middle Gangetic plains and other parts of the subcontinent.
🔍 Why did towns re-emerge?
Several economic and political factors contributed:
- Agricultural surplus (due to iron tools, irrigation, paddy transplantation)
- Rise of Mahajanapadas, which needed administrative centres
- Growth in trade and crafts
- Coinage and taxation required market and collection hubs
🏙 Features of New Towns:
- Houses were built with mudbricks and wood, which rarely survived in the moist climate of the Gangetic basin.
- From the 3rd century BCE onwards, burnt bricks were increasingly used.
🗺 Location and Importance:
These urban centres were not randomly placed. They were located strategically along routes of communication—to facilitate trade and collect revenue.
📌 Examples of Important Cities:
Town | Location Advantage |
Pataliputra (Patna) | On riverine trade routes |
Puhar | Near the coast, connected to sea trade |
Taxila & Ujjayini | On major land trade routes |
Mathura | At the crossroads of northwest-east and north-south routes |
Ring Wells: Glimpses into Urban Domestic Life
While excavating these ancient cities, archaeologists discovered something curious: circular pits lined with pottery rings, stacked one above the other.
These are called Ring Wells.
🔍 What were Ring Wells?
- Found in private homes
- Likely used as:
- Toilets
- Drains
- Garbage disposal pits
👉 Their presence shows basic sanitation systems in ancient urban households, indicating a more organised urban life than often assumed.
Agricultural Changes: Foundation of Economic Prosperity
Now let’s turn to the agricultural revolution that supported these towns. Around the 6th century BCE, we see three key innovations:
🧩 The Three Major Agricultural Changes:
- Growing use of iron ploughshares
- Paddy transplantation
- Use of irrigation
Let’s explore each.
1. Growing Use of Iron Ploughshares
Although iron was known to Vedic people around 1000 BCE, it wasn’t widely used in agriculture initially. Farmers still relied on wooden ploughshares, which were not very effective in heavy soils.
🔍 What changed by the 6th century BCE?
- Iron axes helped clear dense forests, expanding cultivable land.
- Iron-tipped ploughshares could now dig clayey, fertile soil—especially in the Ganga and Kaveri valleys.
This led to a significant increase in agricultural productivity.
But the spread was not uniform:
- In semi-arid areas like Punjab and Rajasthan, iron ploughshares came much later.
- In hilly regions of central and northeastern India, people used hoe agriculture, which suited the terrain better.
2. Paddy Transplantation: A Game-Changer in the Ganga Valley
Another major change was in rice cultivation.
Earlier Method:
- Farmers scattered seeds on fields.
- Many seeds didn’t sprout, reducing yield.
New Method:
- Saplings were first grown separately, then transplanted into waterlogged fields.
- This ensured more plants survived, dramatically increasing yield.
⚠️ But there’s a social angle too:
This was back-breaking labour, often done by dasas and dasis (male and female slaves) and kammakaras (landless labourers).
So, while technology advanced, it deepened social inequality, especially in labour distribution.
3. Use of Irrigation: Tapping the Power of Water
To support increased cropping, irrigation became crucial.
🛠 Methods Used:
- Wells
- Tanks
- Canals (though less common)
🏛 Who built them?
- Sometimes villages or individuals came together.
- But powerful kings or nobles often took the initiative—and made sure to record their generosity through inscriptions.
Sudarshana Lake: A Historical Case Study in Irrigation
Let’s end this agriculture section with an interesting case study.
The Sudarshana Lake in Gujarat is an example of ancient state-sponsored irrigation.
🪨 What do we know?
- We learn about it from a 2nd century CE Sanskrit inscription on the Junagadh rock.
- It praises Shaka ruler Rudradaman, who repaired the lake’s embankments without taxing his subjects.
📜 Historical Timeline:
- Originally built by Pushyagupta, governor under Chandragupta Maurya
- Damaged in a storm
- Repaired by Rudradaman (c. 150 CE)
- Again repaired later by Skandagupta of the Gupta dynasty (c. 5th century CE)
This inscription gives us three insights:
- State involvement in public welfare
- Use of inscriptions as political messaging
- The continuity of infrastructure across dynasties
Crafts and Craftsmen: The Rise of Urban Professions
As new towns flourished during the Second Urbanisation, they were not just political centres—but also economic hubs, bustling with artisans, craftsmen, and traders.
🧶 Craft Activities:
- Ancient cities were filled with textile weavers, potters, metal workers, goldsmiths, carpenters, and ivory carvers.
- Textual sources like Buddhist and Jain literature, along with archaeological finds, give us this information.
📌 Notable Centres of Cloth Production:
Region | Known For |
Varanasi (North India) | Fine textiles and silk |
Madurai (South India) | Cotton textiles and muslin |
👉 Both men and women worked in these industries, reflecting a gender-inclusive workforce in economic production.
Shrenis: The Guild System
To organise this growing economy, artisans and traders didn’t work in isolation. They formed associations called Shrenis, which functioned like guilds.
🔍 What were Shrenis?
There were two main types:
- Artisan Guilds – e.g., of potters, blacksmiths, goldsmiths
- Merchant Guilds – traders and financiers
⚙️ Functions of Shrenis:
- Provided training to newcomers
- Procured raw materials in bulk
- Managed production and distribution
- Acted as economic regulators of craft quality and standards
🏦 Shrenis as Banks:
- Wealthy individuals—both men and women—deposited money with these guilds.
- Guilds invested the funds and:
- Returned interest to the depositor, or
- Donated the proceeds to religious institutions like Buddhist monasteries
This marks the beginning of proto-banking activity in India, centuries before modern finance.
🧬 Hereditary Occupations:
- Most crafts were passed from father to son
- This created specialisation—for example, a family of weavers would maintain their skillset across generations
Northern Black Polished Ware (NBPW): Symbol of Elite Craftsmanship
Among the finest evidence of material culture during this period is a special kind of pottery—Northern Black Polished Ware (NBPW).
✨ Features of NBPW:
- Highly refined, glossy, metallic-looking pottery
- Shiny black surface achieved by:
- Applying a fine black slip
- Firing at very high temperatures in a kiln
🏺 Usage:
- Found mostly in the northern subcontinent
- Commonly used bowls and plates
- Likely used as tableware by elites, indicating social stratification
👉 NBPW serves as an archaeological marker for the urban and affluent classes of the time.

By Biswarup Ganguly, CC BY 3.0 via Wikimedia Commons
Expansion of Trade: Domestic and International
With agricultural surplus and specialised crafts, trade naturally expanded in all directions.
📦 Internal Trade:
- Interlinked through riverine and land trade routes
- Towns became commercial hubs for tax collection, redistribution, and retail
🌍 External Trade:
- Overland trade extended into Central Asia
- Overseas routes crossed:
- The Arabian Sea (towards West Asia, East Africa)
- The Bay of Bengal (towards Southeast Asia and China)
🛤 Major Trade Routes in India:
Route | Region Connected |
Uttarapath | From Northwest India to Bengal across the Gangetic plain |
Dakshinapath | From Magadha/Bihar to Western India (Maharashtra) |
These two arteries were the lifelines of India’s ancient economy.
Commodities in Trade
Traders dealt in a wide range of luxury and utility items.
🛍 High-demand Goods:
- Silk, muslin, and fine textiles
- Ivory and jewellery
- Metal pots and gold
- Medicinal plants and spices, especially pepper
These items were highly valued in foreign markets like the Roman Empire, which imported Indian goods in exchange for gold.
Merchants and Trade Practices
Trade was not easy. Merchants faced long distances, physical exhaustion, and the threat of bandits.
🐂 Trade Practices:
- Traders moved in caravans with bullock carts and pack animals
- Paid tolls at kingdom borders in exchange for royal protection
🧑💼 Merchant Titles:
- In Tamil, a wealthy merchant was called Masattuvan
- In Prakrit, he was known as Setthi or Satthavaha (also called Shreshthi in Sanskrit)
These terms signified not just wealth but also social prestige and economic influence.
Introduction of Coins: The Birth of Monetised Economy
Until now, most trade was barter-based. But with growing commerce, there emerged a need for standardised currency.
💰 Coinage Begins:
- Around the 6th century BCE, metal coins began to appear—mostly silver and copper
- These were the first Indian coins, and their introduction marks the start of a monetised economy
🪙 Punch-marked Coins:
- Not inscribed like modern coins
- Stamped with symbols using dies or punches
- Usually rectangular, sometimes round or square
- Made by either:
- Cutting from metal sheets, or
- Flattening metal globules
🔍 Who issued them?
- While kings issued most, guilds, bankers, and wealthy merchants may have minted some
- Their use facilitated long-distance trade
Keeladi Discovery: Southern Link to the Northern Economy
A silver punch-marked coin was recently discovered at Keeladi (Tamil Nadu).
👉 This suggests:
- Keeladi was likely a trading settlement
- It had economic links with North India, especially the Gangetic Valley
This discovery bridges the southern and northern economies, highlighting the pan-Indian trade network even in early historic times.
Rise of Large Professional Armies: The Politics of Power
In the era of Mahajanapadas, war was not always a last resort. In fact, raiding neighbours was seen as a legitimate method of state expansion and wealth accumulation.
But mere ambition wasn’t enough. States needed power—and power came from a disciplined, full-time army.
⚔️ Transition from Militia to Standing Armies
- Initially, states relied on militias—temporary armies drawn from the peasantry.
- But larger states like Magadha began developing standing armies:
- Regularly paid soldiers
- Salaries sometimes paid in punch-marked coins
👉 This shift marks a qualitative rise in state authority.
🐘 The Magadhan Military Edge:
According to Greek accounts, the Mauryan Empire had:
- 600,000 infantry
- 30,000 cavalry
- 9,000 elephants
⚠️ While these numbers may be exaggerated, the scale reflects a real perception of power.
🔁 Military Transitions:
- Horse chariots, once the pride of Vedic warfare, began losing importance
- War elephants became a decisive factor—and Magadha had them in abundance
Administrative Machinery: The Emerging Bureaucracy
Only Koshala and Magadha emerged as truly dominant in this period. Both were ruled by hereditary Kshatriya monarchs, but they didn’t rule alone.
🧰 Administrative Hierarchy:
Officer | Role |
Mahamatrās | Senior officials performing multiple roles: mantrin (minister), senanayaka (commander), judge, chief accountant, and even harem administrator |
Ayuktas | A separate group likely performing similar functions in other Mahajanapadas |
🏡 Rural Administration:
- Village-level governance was handled by the Gramabhojaka (also called Gramini or Gramika)
- He was the village headman, and often:
- The largest landowner
- Tax collector
- Judge
- Police officer for the village
Taxation: From Gifts to Systematic Revenue
With fortified cities, standing armies, and complex administration, states couldn’t rely on gifts or voluntary offerings anymore. They needed reliable income—hence, the shift to structured taxation.
💰 Who Paid Taxes?
Group | Nature of Tax |
Farmers | Paid the bhāga (share) of crop—usually 1/6th of produce |
Craftspersons | Contributed labour for royal work (e.g., a weaver worked a day for the king) |
Herders | Paid in plant and animal produce |
Traders | Paid customs duties on goods sold |
Hunters and Gatherers | Paid in forest produce |
This diverse tax base helped sustain urban centres, bureaucracies, and armies.
Popular Assemblies: The Fading Echoes of Tribal Democracy
In earlier times—especially during the Rig Vedic period—tribal assemblies like Sabha and Samiti played key roles in governance. But by the 6th century BCE, things changed.
⚠️ Decline of Tribal Institutions:
- As tribes broke down into varnas and castes, their assemblies lost relevance
- In monarchical states, popular assemblies ceased to exist
- In republican ganas (like Shakyas and Lichchhavis), public assemblies still functioned
- Instead, Parishads emerged—elite assemblies of Brahmanas, not general public bodies
This marks a shift from egalitarian tribal systems to a varna-based hierarchical society.
Rural Society: Stratification and Agrarian Relations
While cities developed and kings grew powerful, the village remained the backbone of the economy.
🧑🌾 Who lived in the villages?
In the North:
Role | Description |
Gramabhojaka | Hereditary village headman, largest landowner, judge, police, tax collector |
Gahapati / Grihapati | Independent farmers, smaller landowners |
Dasa and Kammakaras | Slaves and landless labourers; worked on others’ fields |
In the Tamil Region:
Role | Description |
Vellalar | Large landowners |
Uzhavar | Ploughmen |
Adimai and Kadaisiyar | Slaves and landless labourers |
⚠️ Even as technology boosted agricultural production, benefits were unevenly distributed—leading to class differentiation in rural society.
Preconditions for State Formation: A Summary
We now arrive at a crucial point: What enabled full-fledged states to emerge in this era?
📜 Key Preconditions for State Formation:
- Agricultural surplus – made possible by iron tools and better farming techniques
- Structured taxation – not just voluntary gifts, but mandatory revenue extraction
- Permanent bureaucracy – to administer, adjudicate, and collect revenue
- Professional army – to expand and protect territorial authority
⚠️ In the Later Vedic period, agricultural techniques were not efficient enough to support such systems.
But by the 6th century BCE, all these economic and institutional conditions converged—leading to the rise of centralised kingdoms and eventually, empires like Magadha.