How did trade contribute to the Gupta Empire's prosperity?

Trade was a major factor in the Gupta Empire's prosperity because:

The empire occupied strategic positions on inland and maritime trade routes, which connected India with South-East Asia, Central Asia and the Mediterranean world.

A standard coinage and state protection of routes encouraged merchants to trade widely.

Taxes and duties on trade provided revenue that supported administration, public works and the military. Through trade in textiles, spices, gems and other goods, the Gupta economy grew stronger and cities prospered.