ECONOMIC FOUNDATIONS OF VEDIC SOCIETY: TECHNOLOGY, SURPLUS, AND STRATIFICATION

Abstract

This study analyzes the economic conditions of Vedic culture (about 1500–600 BCE), focusing specifically on the contributions of various social classes under the varna system. The study employs a qualitative and historical technique, utilizing Vedic texts, archeological evidence, and contemporary historiographical interpretations to examine structural transformations between the Early and Later Vedic periods. The results demonstrate a shift from a mostly pastoral and tribal economy to a more established agrarian system marked by surplus production, occupational specialization, and developing social inequality. The Vaishyas were pivotal in agriculture, commerce, and surplus production, whilst the Shudras offered vital labor assistance. Brahmins and Kshatriyas had intellectual and political authority over wealth, enabling redistribution and the nascent development of states. The research underscores that technological progress, especially the utilization of iron, and territorial expansion were essential catalysts of economic transition. The Vedic economic system operated through the interconnectedness of social classes, establishing the basis for social hierarchy, economic divergence, and the emergence of organized political systems in ancient India.