Economy of ancient Tamil country trade. Industrial activity flourished. Inland trading was conducted primarily through barter in busy market places by merchant associations and commercial lending institutions. Merchants formed associations that operated autonomously, without interference from the state. The people of ancient Tamil country engaged in brisk overseas trade with Rome; the trade reached a peak after the discovery of a direct route for merchant ships between Tamilakam and Egypt, taking advantage of the monsoon winds. Pepper, pearls, ivory, textiles and gold ornaments were exported from Tamilakam, and the main imports were luxury goods such as glass, coral, wine and topaz. Foreign trade brought in
Economy of ancient Tamil country for containing dried grains and other edible articles were also constructed. Ancient Tamilians were active traders in various commodities, both locally and outside Tamil country. The kingdoms of northern India sought pearls, cotton fabrics and conch shells from Tamilakam in exchange for woollen clothing, hides and horses. Locally most trading was in food products – agricultural produce was supplemented by products from hunters, fishermen and shepherds who traded in meat, fish and dairy products. In addition, people bought other goods such as items for personal hygiene, adornment and transportation. Mercantile transactions took place in busy market places. Traders used various