The section discusses the establishment of the Vijayanagara Empire in the 14th century, highlighting its rise as a significant political and economic power in India. The empire prospered through extensive trade networks, especially in horses, which were vital for warfare, with Arabian and Central Asian imports facilitated by both Arab merchants and local kudirai chettis. Following the advent of the Portuguese, who introduced advanced military technology and changed trade dynamics, Vijayanagara became a hub for spices, textiles, and precious gems. The rule of Krishnadeva Raya marked a period of both prosperity and expansion. However, conflicts with Deccan Sultanates and internal strife eventually led to the empire's decline and the sacking of its capital, Vijayanagara, in 1565.