For example there are four varnas: Brahmans, Kshatriyas, Vaishyas and Shudras. But jati or caste may be many, unrestricted by number. This is but natural. For, one cannot change his or her varna during his or her lifetime. But marriage between two different varnas gave rise two different castes.

The lawgivers strictly prohibited marriage between two different varnas. But in reality this could not be maintained strictly. Thus inter-caste marriage gave rise to varnasankaras or mixed castes. These varnasankaras gave rise to jati. Further the need to accommodate foreigners in the fourfold society also increased the number of caste or jati.

It has been pointed out by Atindranath Bose that mere tools and implements are not the sole means of production.-It requires organization. We have references to shreni or puga as the names for industrial and commercial guilds of course sometimes the term nigama is also used in lieu of shreni and puga.

The guild life was the characteristic feature of an advanced stage of economic progress.Guilds emerged roughly from Second Century AD. Like the trader artisans also organize themselves into guilds. Historical source indicate that there were as many as 24 guilds organized by the artisan associated with various manufactures.

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Guilds were mostly centered in towns, although these were not totally absent in the village areas As regards the utility of the guilds following may be said.

(1) The guilds played an important role in the economy of the state.

(2) The guilds controlled the prices of the commodities.

(3) The guilds keep vigilance on the quality of the goods manufactured.

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(4) Guilds had their own rules to be observed by the members.

(5) There was also provision for punishment for those who did not abide by the rules of the guild.

(6) The guilds also perform social duties.

They helped their members at the times of need. Widow of a member also used to get financial support from the guilds.