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What is the problem with the periodisation of Indian history that James Mill offers?

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Although Hinduism is the religion of most of the Indians; the Muslim period did not begin one fine day. Muslims had been living in India from much earlier than beginning of the Islamic rule in India. Even during the peak of the Mughal Empire, there were many territories which were ruled by Hindu kings. Moreover, the British projected the so called Hindu and Muslim periods as the dark ages. They thought that the British rule would take India towards enlightenment. This was also a wrong notion.

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