Ancient Indian Economics in the Modern Context

Ancient Indian Economics in the Modern Context

The study of Arthashastra or the science of state craft is older than Kautilya (300 B.C.). The very opening sentence of his great work Arthashastra bears testimony to this.

“Prithivya labhe Palane cha yavanthyarthashastrani, Purvacharyaihi Prasthapithani Prayashasthani, samhruthyekamidam arthashastram krutham.”

This Arthashastra is made as a compendium of almost all the arthashastras, which in view of acquisition and maintenance of the earth, have been composed by ancient teachers.
In the course of the work, Kautilya has mentioned the names of twelve ancient teachers of Arthashastra. They are Brihaspathi, Ushana, Prachethasa Manu, Parashara, Ambhi, Vathavyadhi, Pisuna, Vishalaksha, Bharadwaja, Kaunapadantha and Bahudanthi puthra. However none of their works are available to us. As such we can safely consider Kautilya’s Arthashastra as the quintessence of Ancient Indian Thinking.
The word Arthashastra cannot be translated as Economics as we use it today. Arthashastra is much wider than Economics. Arthashastra includes - apart from Economics, Public administration, External affairs, Military science, Human Resource Management and so on.
Kautilya’s Arthashastra contains 15 sections, 150 chapters and 180 sub chapters. It consists of 6000 Sholakas and Suthras.
Even though Kautilya wrote his Arthashastra 2300 years ago, it is still relevant to the modern times in several respects.

The Importance of treasury

Kosha or treasury is absolutely important for king or the modern governments. In this context Kautilya writes,

“Kosha purvaha sarvaarambhaha, Thasmath Purvam kosham avekshetha.”

All activities start with treasury. Therefore the king has to give top priority to kosha. He further warns,

“Alpa Khoshohi Raja Poura janapadanyeva grasathe.”

A king with a depleted treasury makes the life of the citizens miserable.
He also describes 9 ways of filling the treasury and 8 ways in which the treasury is depleted.

An Ideal King

Kautilya describes the qualities of an ideal king (Government) which is relevant for all times – past, present and future.

“Praja sukhe Sukham Ragnaha
Prajananthu hithe hitham
Nathma priyam hitham ragnaha,
Prajananthu priyam hitham.”

An ideal king is he who considers the welfare of his subjects as his own welfare. What is good for the subjects is considered good for him and not what is good for him personally.
The need for such rulers is all the more greater today.

Importance of Money
[Financial Capital]

Kautilya believes more in human spirit and Enterprise rather than Astrology. In this connection he says,

“Nakshtramathi Pruchantham
Balamarthothi varthathe
Arthohyarthasya Nakshatram
Kim Karishyathi tharakaha.”
Wealth will slip away from that childish man who always consults stars. The only guiding star of wealth is wealth itself. What the stars can do?

“Arthasya mulam utthanam
Anarthasya viparyayaha.”

The root of wealth is economic activity/enterprise. Lack of it brings material distress.
Don’t we emphasize the human effort and the spirit of enterprise, in economic development even today on the lines of Kautilya?
I may conclude this short paper stating that Ancient Indian Economics as crystalised in Kautilya’s Arthashastra is in several respects, all the more relevant today than it was during Kautilya’s time i.e. 300 B.C.