During the Mughal period (1526–1858) India went from the first to the second-largest economy in the world. The gross domestic product of India in the 16th century was estimated at about 25.1% of the world economy.[9]
According to economic historian Angus Maddison in his book Contours of the world economy, 1-2030 AD: essays in macro-economic history, India had the world's largest economy during the years 1 AD and 1000 AD.[7]
An estimate of India's pre-colonial economy puts the annual revenue of Emperor Akbar's treasury in 1600 at £17.5 million (in contrast to the entire treasury of Great Britain two hundred years later in 1800, which totalled £16 million).[citation needed] The gross domestic product of Mughal India in 1600 was estimated at about 24.3% the world economy, the second largest in the world.[9]
An estimate by Angus Maddison argues that India's share of the world income went from 27.3% in 1700[9
In the 18th century, Mughals were replaced by the Maratha Empire in much of India, Maratha rule expanded to almost 2.8 million km². While the other small regional states who were mostly late Mughal tributary states such as the Nawabs in the north and the Nizam in south India remained. Tax administration system in India was collected by officers of the Maratha empire, however, the Mughal tax administration system was left largely intact.
By this time India again had the largest economy in the world, with a (27.3%) share of world GDP, followed by Manchu China and Western Europe.[9] Nevertheless, a devastating famine broke out in the eastern coast in early 1770s killing 5 per cent of the national population.[10]
Economic history of India - Wikipedia, the free encyclopedia