Nepal, Kamarupa & Gandhara
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Another hill state which came into prominence during this period was Nepal, having revolted against the hegemony of Tibet in 878, from which year a new era was started to commemorate the independence of Nepal. This not only meant political freedom but also resulted in substantial economic progress. Nepal being on the highway from India to Tibet, both the Chinese and the Tibetan trade with India passed through the new state.

The reign of Gunakamadeva in the eleventh century saw the building of new towns such as Kathmandu, Patan, and Shanku, mainly from the income brought in by trade. But the kings of Nepal were also to suffer from the presence of powerful landowners, the Ranas. The strength of the Ranas, and the precarious balance between the position of the king and that of the Ranas was a constant feature of Nepali Politics.

Kamarupa (Assam) was yet another mountainous region which developed into an independent kingdom based on trade, it being the link between eastern India and eastern Tibet and China. Much of Kamarupa was conquered in 1253 A.D. by the Ahoms, a Shan people who came from the mountains to the south-east of Assam. It was they who finally gave the place its name, Assam.

In the ninth century, a Turkish family - the Shahiyas - ruled over the Kabul valley and Gandhara. The king had a Brahman minister who usurped the throne and founded called the Hindu Shahiya dynasty. He was pushed eastwards by pressure from other Afghan principalities and finally established his power in the region of Attock, thus becoming a buffer state between northern India and Afghanistan. His descendant Jayapala consolidated the kingdom and made himself master of the entire Punjab plain. It was Jayapala who had to face the armies of the ruler of Ghazni, when the latter invaded northern India in the eleventh century.

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