I have heard many Indians say that India before colonialism was insanely rich and comprised of anywhere between a third and a quarter of the globe's GDP. But I have also heard others say that all of this wealth was heavily concentrated in the hands of a few rulers while the average Indian lived in extreme poverty even by the standards of the time. Where does the truth lie?
The following is an answer I wrote which looks at the material conditions of an average peasant under the Mughal Empire, also goes into the definition of what the peasantry was and it's many sub-divisions based on class and caste :
If anyone would like to add on to this or give a European perspective, they are more than welcome, but in the meantime, go through it if it seems at all helpful.