Aryavarta is a term used in ancient Hindu texts to refer to the northern Indian subcontinent. It is a Sanskrit word that means “land of the Aryans” or “land of the noble people”. It was used to describe the areas of the Indo-Gangetic Plain and surrounding regions that were settled by Indo-Aryan tribes and where Indo-Aryan religion and rituals were prevalent. 
The ancient Indian text Manusmriti, written in the first century CE, defines Aryavarta as “the tract between the Himalaya and the Vindhya ranges, from the Eastern Sea [Bay of Bengal] to the Western Sea [Arabian Sea]”. Aryavarta is also mentioned in the Vedas, many scriptures, and the Mahabharata. 
“Why was India known as Aryavarta? What is the complete history of knowing India by the name of Aryavarta?

For the following reasons, India was called Aryavarta. The entire Earth was called the Bharatvarsha but in particular, the area that lied south to the Himalayan Mountain was called the Bharatvarsha. The Bharatvarsha was also known as Aryavarta meaning the land of Aryans

In ancient times the land areas covered by the seven tributaries of the River Indus – Chenab, Ravi, Sutlej, Jhelum, Beas and Saraswati was called as Sapta Sindhu – Land of Seven Rivers. The word Sindhu was used to denote the entire land near the river. When Persian came to India they started calling it as Hindu in their own language. Hindu then got modified in Indus and further India after invasion from the European nations.

The Constitution of India and common usage in Hindi recognizes Bharat as an official name of equal status. The origin of the word Bharat dates back to the mythological figure that the Hindu scriptures describe as King Bharata, a legendary emperor of ancient India. Bharata once ruled the entire subcontinent and thus the land was named after him as Bharat. Bharat Varsh was also used to denote the empire

The natives of all other countries on the earth praise this very country, and believe that the philosopher’s stone is to be found here. Though this story of the philosopher’s stone is a myth, yet it is true that this country (Aryavarta) itself is verily a philosopher’s stone whose very touch converts all base metals – poor foreigners – into gold – rich nabobs.

Since the beginning of the world till 5,000 years back, the Aryas were the sovereign rulers of the whole earth, in other words, there was only one paramount power whose suzerainty was acknowledged by the rulers of the earth. Till the time of the Kauravas and the Pandavas, all rulers of the earth and their subjects obeyed the law laid sown by the rulers of this country, for it is said in the Manu Smriti, that was compose in the beginning of the world. “Let all other people of the earth – Brahmans*, Kshatriyas, Vaishyas, Shoodras, Dasyus and Malecchas – learn arts

• Braahaman’s _Teachers – secular and spiritual.
  Kshatriyas – Men of governing class, statesmen, soldiers, etc.
  Vaishyeas – Merchants, artisans and farmers.
  Shoodraas – Men of the servant class, laborer.
  Dasyus – Wicked people
  Malechhas – Barbarians.”