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The earliest anatomically modern human remains found in South Asia are from approximately 30,000 years ago. Nearly contemporaneous Mesolithic rock art sites have been found in many parts of the Indian subcontinent, including at the Bhimbetka rock shelters in Madhya Pradesh. Around 7000 BCE, the first known neolithic settlements appeared on the subcontinent in Mehrgarh and other sites in western Pakistan. These gradually developed into the Indus Valley Civilisation, the first urban culture in South Asia, which flourished during 2500–1900 BCE in Pakistan and western India. Centred around cities such as Mohenjo-daro, Harappa, Dholavira, and Kalibangan, and relying on varied forms of subsistence, the civilisation engaged robustly in crafts production and wide-ranging trade.

During the period 2000–500 BCE, many regions of the subcontinent evolved from copper age to Iron Age cultures. The Vedas, the oldest scriptures of Hinduism, were composed during this period, and historians have analyzed these to posit a Vedic culture in the Punjab region and the upper Ganges Plain. Most historians also consider this period to have encompassed several waves of Indo-Aryan migration into the subcontinent from the north-west. The caste system, which created a hierarchy of priests, warriors, and free peasants, but which excluded indigenous peoples by labeling their occupations impure, arose during this period. In the Deccan, archaeological evidence from this period suggests the existence of a chiefdom stage of political organisation. In South India, the large number of megalithic monuments found from this period, and nearby evidence of agriculture, irrigation tanks, and craft traditions suggest progression to sedentary life. By the 5th century BCE, the small chiefdoms of the Ganges Plain and the north-west regions had consolidated into 16 major oligarchies and monarchies called Mahajanapadas. The emerging urbanisation as well as the orthodoxies of the late Vedic age created the religious reform movements of Buddhism and Jainism. Buddhism, based on the teachings of India's first historical figure, Gautam Buddha, attracted followers from all social classes excepting the middle; Jainism came into prominence around the same time during the life of its exemplar, Mahavira. In an age of increasing urban wealth, both religions held up renunciation as an ideal, and both established long-lasting monasteries. Politically, by the 3rd century BCE, the kingdom of Magadha had annexed or reduced other states to emerge as the Mauryan Empire. The empire was once thought to have controlled most of the subcontinent excepting the far south, but its core regions are now thought to have been separated by large autonomous areas. The Maurya kings are known as much for their empire building and determined management of public life as for Ashoka the Great's renunciation of militarism and far-flung advocacy of the Buddhist dhamma.

The Sangam literature of the Tamil language reveals that, between 200 BCE and 200 CE, the southern peninsula was being ruled by the Cheras, the Cholas, and the Pandyas, dynasties that traded extensively with the Roman Empire and with West and South-East Asia. In North India, Hinduism asserted patriarchal control within the family leading to increased subordination of women. By the 4th and 5th centuries, the Gupta Empire had created a complex administrative and taxation system in the greater Ganges Plain that became a model for later Indian kingdoms. Under the Guptas, a renewed Hinduism based on devotion rather than the management of ritual began to assert itself. The renewal was reflected in a flowering of sculpture and architecture, which found patrons among an urban elite. Classical Sanskrit literature flowered as well, and Indian science, astronomy, medicine, and mathematics made significant advances.

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