The Guptas had ruled north India for about 200 years. Political unity, economic prosperity and extraordinary progress in every aspect of life under the Guptas were prevalent. The Gupta period had witnessed great prosperity, owing to the flourishing trade, agriculture and industry. Prosperity due to Roman trade, which began in the Kushana period, continued upto the early reign of the Guptas. The Saka Satraps of western India continued trade with the west after the fall of the Kushanas. Chandragupta II`s conquest of Malwa and Saurashtra, by overthrowing the Saka rulers had established direct link of the Guptas in India with Roman trade. Brigukachchha port bore the bulk of trade with the west. Ujjaini itself had served as a major centre of trade. From Ujjaini goods were directly transformed to Bhrauch, wherefrom it was shipped off to the west. There were supplementary ports like Kalyana and ports of Sind, wherefrom the trade was carried out. Ujjaini was linked with south India and Deccan through roads. It was also linked with a road to Pataliputra and Eastern India. The inland market of Govardhana, Nasik, Paithan, Pataliputra, Beneras etc. provided the materials, which were exported through ports of Bhrauch.

Trade with Rome continued in a flourishing manner till the early Gupta period. Then it suffered disruption and from the time of the Hun invasion, it had greatly declined. Even then trade with Byzantine Empire continued. The discovery of Byzantine coins in different parts of India testifies the continuation of Byzantine trade. As a result there was considerable decline of Indian silk trade with Rome. Silk merchants of western India were thrown out of employment suddenly. The Mandasor inscription depicts the story of a guild of silk workers who had migrated from Gujrat to Dasapura, where they had taken up a different occupation.

Apart from silk, the Guptas had traded many other materials with the Romans. Historians have opined that slaves were exported to Roman countries. India exported leather goods, fur, iron products, ivory, pearl, pepper, spices and indigo to the west. India produced sugar in galore. From "Raghuvansam" it is known how sugarcane and Sali paddy was cultivated in India. Bengal was famous for the cultivation of a special type of sugarcane called Pundri-Akh. Gauda in Bengal was important for the production of molasses. Besides Indian cotton goods, both the fine and coarse quality also had a great external market.

Decline of trade with Rome did not affect India`s foreign trade though. The diminution of Roman trade was compensated by flourishing trade of the Guptas with the countries of East Asia and Southeast Asia, through the port of Tamralipta. According to Cosmas, in 6th century, Sindhu, Kalyan and Chaul in the Western Coast and Kaveri Pattanam in the Coromondal coast were the important centres of maritime trade in ancient India during the Guptas. Tamralipta was the most significant one.

Apart from external trade, the Guptas in India had a flourishing inland trade, which was augmented by political peace, established by the Guptas and the vast network of roads linking different parts of the country. The towns of Beneras, Mathura, Sarnath, Pataliputra, Ujjaini, Nasik, Paithan, Kanchi, and Tamralipta were famous trading centres.

The Gupta government had laid down various laws and regulations for smooth flow of trade, which also had influenced the economic life of the Guptas. The Smritis, or law books had laid down the principle that it was royal duty to encourage trade and arts. Like the Mauryan government, the Guptas had also laid down various regulations on trade. It was said that imported commodities should be taxed at the rate of 1/5th of the value as a toll. "Kamasutra" had stated that the Ayuktas use to look after the storehouses in villages.

Guild system was a part of life of the traders and manufacturers. The guilds had their autonomous organisation and had their own rules of organisations. There was a specific president to supervise the guild. However according to Kausambhi, after the decline of Roman trade and the emergence of rural economy, the guild system had lost its shine. Dr. Majumdar also supports this view and opines that the guild system was completely diminished in the 4th and 5th centuries.

Agriculture was not at all neglected during the Gupta period in spite of the spread of trade. Agriculture held a significant place in the economic life of the people during the Gupta period. Agriculture was the main occupation of common folk and a stable source of state revenue. Land revenue was collected from various categories of land. Land was divided into 3 categories- fallow or wasteland owned by the state, cultivated land owned by the state from which the main portions of the state income was derived, and private land. The king used to grant land to Brahmins free of tax, which was called `Agrahaara` grant. Theoretically the king could revoke the land after the death of the grantee but actually the land remained as a hereditary to the family of the grantee, though the king had direct control over that land. Where the tenant farmers use to cultivate their land, the owner achieved ½ or 1/3 of the produce, the remaining of which went to the tenant. Paddy, wheat, fruits, sugarcane, bamboo etc. were cultivated in the cultivable lands. From the accounts of Fa-hien it is known that paddy was cultivated in the regions of Magadha and eastern India and wheat was cultivated in northern and western India. The Gupta kings also took special care of irrigation purposes for the promotion of agricultural economy in the Gupta kingdom.

Textile industry greatly flourished during the Gupta period. Beneras was famous for silk manufacturing and Mathura was famous for cotton fabrics. Textile had a vast domestic or inland market and "Indian Muslin" was very popular abroad. Though Indian silk trade with Rome had declined after the Hun invasion, yet brisk trade of Chinese silk through land and sea routes had flourished. Apart from textile production, ivory cutting, stone cutting, metal casting, making of gold and silver ornaments, pottery etc. were prominent industries in Gupta phase. Weaponry was rigidly controlled by the state. These industrial products had overseas market also. Goods were transported through sea routes in the overseas market.

Thus during the Gupta period, trade and agriculture both had achieved a thriving prosperity, which promoted economic life of the people, thereby attaining material prosperity.