During the period following Alexander’s invasion, i.e. after 300 BC, India witnessed intimate and widespread contacts with central Asia, China, Gracco-Roman world and south-east Asia. These contacts resulted in the development of Indian economy, society, polity and culture.
New elements were introduced in all the spheres of Indian life. However, the most profound impact was on the economy due to massive trade between these regions, on one hand, and India, on the other. Because of this flourishing trade, the Indian industries and urban centres flourished on a scale India had never experienced before.
There were many factors responsible for the increase in trading and commercial activities. The first and foremost was the great unification under Mauryas and the measures taken by them. These measures included the concept of janapadanivesa tHVough which a large mass of uncultivated land was brought under cultivation.
The result was generation of a large surplus which could now be traded for those living in the urban centres. Another measure was the development of roads and transport system. The trunk route joining Pataliputra to Taxila was constructed by the
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Mauryas Pataliputra was joined to Tamralipti by land route as well as by river route. Creation of a single empire resulted in the safety of the routes as well as less number of cuss collecting stations.
Another development was the growth of Jainism and Buddhism which encouraged the trading activities in the light of the fact that they favoured accumulation and reinvestment of wealth. The traders who were till now given a low social status came to enjoy a higher status on the social scale. Apparently a large number of viharas were located on the intersections of the trade routes.