Vedic Economy

Vedic economy was not uniform throughout the Vedic period. Rig Vedic economy was basically a pastoral economy whereas the Later Vedic period witnessed mainly an agrarian economy.

Economic Life of Early Vedic Period

• The economic life of early vedic period or Rig vedic period was essentially pastoral in nature as the main activity of people was rearing animals. Agriculture remained a secondary activity then. The only food grain mentioned in Rig Veda is Yava (wheat and barley).
  
  
• Regarding industries, Textile, Leather, Pottery, Carpentry, Metal industries were present. The only metal mentioned in Rig Veda for making tools is Aya (copper and bronze).
  
  
• Trade and commerce was carried out on a limited scale. Suvarna Nishka was mentioned frequently in Rig Veda. According to some historians, these are gold coins but others have rejected it. It may be a gold ornament with some fixed value.

Economic Life of Later Vedic Period

• The economic life of later vedic period was transformed from pastoral to agrarian. During this period, Aryans migrated from Sapta Sindhu region to Indo-Gangetic basin. They started growing Vrihi (Vedic term for rice) extensively.
  
  
• Krishna Aya, which is nothing but Iron, started to be used around 1000 BC.
  
  
• Trade and commerce was considerably developed as a result of high level of agriculture. Urbanization started in Indo-Gangetic basin.