In ancient time India was a prosperous nation. It was famous as a golden bird. Indian villages were economically independent. From different corners of the world traders came to India to purchase its goods. Foreign trade was done through water ways and land routes. Trade relations in East were progressed through land routes with Tibet and China while in West with Iran and Arab.
In east Tamralipti sea port was main, traders went to China, Lanka, Java and Sumatra, etc. through this seaport. Foreign traders brought with them gold, silver, ruby, diamonds and jewellery with them. In place of these items they took from India cotton, silk and zari clothes, etc. From western countries sweet wine and silk from China and wool from Nepal were imported. Cloves and sandalwood were exported to Sri Lanka and from there these things were exported to Western nations. Pearl, precious stones, fragrances, clothes, spices, indigo, medicines and coconuts were chief exports. In place of them,things like gold coins were imported from foreign countries.