**Answer:**

The term "Puga" stands for a group of merchants.

**Explanation:**

Puga, also known as Pugaon, was a term used to refer to a group of merchants in ancient India. These merchant guilds played a significant role in the economic and social life of the country during that time.

**Importance of Merchant Guilds in Ancient India:**

1. **Trade and Commerce:** Merchant guilds were involved in various aspects of trade and commerce. They facilitated the exchange of goods and services between different regions and played a crucial role in the growth of trade networks.

2. **Protection and Security:** Pugas provided protection and security to their members. They ensured the safety of goods and merchants during travel and trade transactions. This helped in minimizing risks and promoting trust among traders.

3. **Regulation and Standardization:** Pugas established rules and regulations for trade, ensuring fair practices and maintaining quality standards. They also resolved disputes among merchants and regulated the pricing of goods.

4. **Financial Services:** Pugas acted as financial intermediaries, providing credit facilities and loans to their members. They played a vital role in facilitating financial transactions and promoting economic growth.

5. **Social and Cultural Activities:** Apart from their economic functions, merchant guilds also organized social and cultural activities. They played a significant role in fostering community cohesion and promoting cultural exchange.

**Conclusion:**

The term "Puga" refers to a group of merchants in ancient India. These merchant guilds played a crucial role in facilitating trade, providing security, regulating commerce, offering financial services, and organizing social and cultural activities. Their influence on the economic and social life of ancient India was significant.