Trade and Economy — Key Changes

Entry	Year	Description	Impact
Phase I	Early Harappan (c. 3300-2600 BCE)	Characterized by the emergence of settled agricultural communities, localized craft production, and nascent regional exchange networks. Economic activities were primarily subsistence-based with limited surplus generation. Early forms of standardized pottery and seals begin to appear, hinting at future integration.	Laid the groundwork for urban growth and economic complexity. Established initial patterns of resource exploitation and local trade, demonstrating early forms of economic organization.
Phase II	Mature Harappan (c. 2600-1900 BCE)	Witnessed the full flowering of the Harappan economic system: massive agricultural surplus, extensive craft specialization, highly standardized weights/measures, and vast internal and international trade networks. Urban centers became hubs for production, consumption, and exchange. This period represents the peak of economic integration and prosperity.	Defined the iconic Harappan economy, enabling large-scale urbanization, long-distance trade with Mesopotamia, and a sophisticated division of labor. Most archaeological evidence for trade and economy pertains to this phase.
Phase III	Late Harappan (c. 1900-1300 BCE)	Marked by a gradual decline in urban centers, a reduction in standardization, and a contraction of long-distance trade networks. Craft production became more localized and less refined. Economic activities shifted towards rural subsistence, indicating a breakdown of the integrated system.	Reflects the disintegration of the complex Harappan economic model, leading to de-urbanization and a return to more localized, less specialized economies. Provides insights into the fragility of complex trade systems.
Scholarly Interpretation Shift	Mid-20th Century onwards	Early interpretations often focused on a centralized, state-controlled economy. More recent scholarship 'amends' this view by emphasizing the role of powerful merchant guilds, decentralized city-states, and market forces in driving Harappan commerce, while still acknowledging the high degree of standardization and organization.	Offers a more nuanced understanding of Harappan political economy, moving beyond simplistic models to consider complex interactions between various economic actors and institutions. This shift influences how UPSC aspirants should analyze the IVC's economic governance.