The economic conditions of people were very good during the reign of Harsha. It was a period of plenty and prosperity of India. The soil was very fertile and yielded very good production. Besides agriculture there were different trades. The industry of cotton was flourishing. Cotton, silken and woolen clothes were being prepared on a large scale. Hiuen Tsang has described many things made of clay and metals. The merchants had organized themselves into guilds and these guilds made a valuable contribution in the economic life of the people. Banaras, Prayag, Kannauj etc. were big cities and there were also important commercial centers. It is said that after every five years Harsha donated all his wealth to the monies, orphans, poor, etc. Yet the treasury was never empty. This clearly indicates the prosperity of northern India during the reign of Harsha.
