The economy of the ancient Tamil country (Sangam era: 600 BCE – 300 CE) describes the ancient economy of a region in southern India that mostly covers the present-day states of Tamil Nadu and Kerala. The main economic activities were agriculture, weaving, pearl fishery, manufacturing and construction. Rice was the most important crop; it was the staple cereal, grown widely in paddy fields, and served as a medium of exchange for inland trade. Pepper, millets, pulses and sugarcane were other commonly grown crops. Madurai and Urayur were important centres for the textile industry; Korkai was the center of the pearl 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 a large amount of internationally convertible Roman currency.