NATIONAL LAW INSTITUTE UNIVERSITY, BHOPAL

HISTORY
PROJECT WORK

KAUTILYA’S ARTHASHASTRA: ITS IMPACT ON INDIAN

ADMINISTRATION

SEMESTER-III

SUBMITTED BY: SUBMITTED TO

SHIVAM NISHAD Asst. Prof Uday Pratap Singh

2021 B.A.L.L.B(Hons) 33
 TABLE OF CONTENTS

ACKNOWLEDGEMENT 2
INTRODUCTION 3
OBJECTIVES OF THE STUDY- 5
SCOPE OF THE STUDY- 5
REVIEW OF THE LITERATURE 5
HYPOTHESIS 6
RESEARCH QUESTION 6
RESEARCH METHODOLOGY 6
SUBSTANTIVE DISCUSSION AND ANALYSIS 7
A. UNDERSTANDING ARTHASHASTRA 7
B. MAIN SOURCE OF MAURYAN HISTORY 7
C. CONTROVERY ABOUT ITS AUTHORSHIP 7
D. ESSENTIALS 9
KING AND KING’S DUTY- 10
E. ECONOMIC IDEAS 15
F. KAUTILYA ON THE CREATION AND PRESERVATION OF WEALTH 16
G. PUNISHMENT FOR VIOLATING JUSTICE 17
CONCLUSION AND SUGGESTIONS 18

ACKNOWLEDGEMENT

In performing my project work, I had to take the help and guideline of some respected persons,
who deserve our greatest gratitude. The completion of this project work gives me immense
pleasure. I would like to show my gratitude to Shri Uday Pratap Singh, for giving me a good
guideline for the project work throughout numerous consultations. I would also like to expand my
deepest gratitude to all those who have directly and indirectly guided me in writing this project
work. Many people, especially my classmates and staff members, have made valuable comment
suggestions on this proposal which gave me an inspiration to improve the assignment. I thank all
the people for their help directly and indirectly to complete the project work.

INTRODUCTION
Arthashastra is a one-of-a-kind treatise and comprehensive guide that provides guidance on a
variety of subjects, including administration, politics, human resource management, financial
management, and good governance. Although centuries have passed, the topics explored by
Kautilya remain pertinent and appropriate in contemporary life. Additionally, the Arthashastra is
a title for a manual on how to administer an empire that was authored by Kautilya, also known as
Chanakya, an Indian philosopher who served as the chief advisor and Prime Minister of the
Indian Emperor Chandragupta Maurya between 350BCE and 275BCE. Since the time of its
evolution, Arthashastra has had a significant impact on Indian government. It is written in
Sanskrit and elucidates statecraft, economic policy, and military strategy themes. Kautilya, alias
Chanakya, composed Arthashastra, or "science of politics," to instruct a wise king on how to
vanquish his adversaries and govern for the common welfare.

The Arthashastra encapsulates Kautilya's political views. This book was lost for centuries until a
copy was recovered in India in 1904 CE, written on palm leaves. Although this edition dates
from roughly 250 CE, many centuries after Kautilya's time but the main principles embodied in
the book were his own creation.1 The book includes in-depth knowledge on a variety of themes
pertinent to rulers seeking to administer an effective administration. While diplomacy and war
(including military tactics) receive the most attention in the work, it also contains
recommendations on law, jails, taxation, irrigation, agriculture, mining, fortifications, coinage,
manufacture, trade, administrations, diplomacy, and espionage. Kautilya's thoughts in the
Arthashastra are entirely pragmatic and unsentimental. Kautilya writes openly on contentious

1 PATRICK OLIVELLA, KING, GOVERNANCE, AND LAW IN ANCIENT INDIA KAUTILYA’S

ARTHASASTRA 01-09 (OXFORD
UNIVERSITY PRESS 2013)
subjects such as assassinations, when to assassinate family members, how to manage secret
agents, when to breach treaties, and when to spy on ministers. As a result, Kautilya is sometimes
likened to Machiavelli, the Italian Renaissance author of The Prince, who is widely regarded as
dishonest and immoral. It is necessary to highlight that Kautilya's literature is not always devoid
of principles, as he also discusses the king's moral obligation. He summarises a ruler's
responsibility by saying, "The subjects' happiness is the king's delight; their welfare is his." His
own happiness is not beneficial to him, but the pleasure of his subjects is beneficial to him."
According to some researchers, Kautilya's theories are a synthesis of Chinese Confucianism and
legalism.

Through time, Kautilya's norms served as guidelines for several monetarily related operations.
Kautilya was a leading proponent of the idea that the state or government has a critical role to
play in ensuring the material prosperity of the citizens of a country. Kautilya's teachings,
alternately known as Chanakya and Vishnugupta, are critical for both India and the Netherlands,
despite the fact that both are in various stages of development. Kautilya's work is summarised in
the book Kautilya's Arthastra; the approach of monetary administration and financial control. A
important section of the Arthastra is devoted to the analysis of wealth or financial matters. When
it comes to legislative matters, the Arthastra depicts in full the art of governance in its broadest
sense; the support of legislation and the solicitation of competent authority apparatus. Kautilya's
Arthastra was oriented on wealth production as a means of ensuring the state's prosperity.
Maintaining an immaculate balance between state administration and individual welfare was the
central theme of Katutilya's 2500-year-old monetary treatise Arthastra.

It established concepts of state corruption and monetarism, as well as a system of civil and
criminal law. Arthastra literally translates as 'the knowledge of wealth' in Sanskrit. In Sanskrit,
artha means wealth' and sastra means science. Kautilya observed that a nation's wealth is not
determined solely by economic considerations but by a diverse variety of elements.

Along these lines, his treatise addresses monetary, political, discretionary, social, and military
factors that may affect a country's abundance. Regardless of the fact that his work places a strong
emphasis on the king's wealth, viability, and prosperity, his true extreme objective was not to
benefit the ruler but rather to benefit the general populace. He reasoned that a strong and
prosperous government would be able to protect the general populace's interests against attack by
various lords. He has repeatedly stated that the lord must keep his subjects pleasant and should
avoid imposing punitive measures except in times of crisis. Kautilya makes it very clear that the
monarch's intensity is not limitless; he has verifiable authoritative obligations to fulfil as a
significant component of his post — a known social contract exists between the king and his
subjects. The conventional ends of human life, Dharma (honourable living), Artha (material
prosperity), Kama (satisfaction with erotic and aesthetic objects), and Maksha (opportunity from
the birth-death cycle), all go hand in hand, and satisfaction in a full life was previously believed
to be implausible without any of the above. Artha, in particular, plays a critical role in human
life.

Kautilya, ancient India's first financial scholar, handled financial issues alongside political ones
in his Arthastra. Another source of ideas on financial matters was the Mahabharata's Santi Parva,
the epic in which exhortation over the accumulation and distribution of wealth was interspersed
with advice on the most efficient way to administer a kingdom. The Arthastra placed a premium
on state conservation through collusions, and viewed outstanding advise and sound judgement as
more valuable than military might as elements of the state's capability. Arthastra approaches state
endeavours from an administrative standpoint.

OBJECTIVES OF THE STUDY-

Herein through this project I am studying the impact of KAUTILYA’S ARTHASHASTRA on
the Indian administration in 4th centaury B.C. wherein connecting and consequently describing it
parallely with Mauryan Empire.

SCOPE OF THE STUDY-

The scope of the study is limited only up to Arthashastra and herein enlisting its contents which
talks about the impact and factors affecting the Mauryan Empire by the implementation of
Kautilya Arthashastra.

REVIEW OF THE LITERATURE

1. KING, GOVERNANCE, AND LAW IN ANCIENT INDIA, BY- PATRICK

OLIVELLE : “ King, Governance, and Law in Ancient India presents an English
 translation of Kautilya’s Arthasastra (AS) along with detailed endnotes. When it was
discovered in 1923, the AS was described as perhaps the most precious work in the
whole range of Sanskrit literature, an assessment that still rings true. Patrick Olivelle’s
new translation of this significant text, the first in close to half a century, takes into
account a number of important advances in our knowledge of the texts, inscriptions, and
archeological and art historical remains from the period in Indian history to which the
AS´ belongs.”
2. ANCIENT INDIA S.CHAND BY- V.D. MAHAJAN 2017: “Ancient Indian history
has always been mystical; more so a virtual utopia for historians and researchers. This
scholarly text narrates the ancient Indian history from the genesis of civilisations to the
early middle ages. it examines the sources, chronology of civilisations and
authoritatively details the facts, feats, triumphs and religious crusades of the period. it
unveils the rich cultural, religious and social diversity that is uniquely and peculiarly
Indian. The literature review also focuses on Kautilya’s biography in brief. Also,
Kautilya’s views on certain aspects have been mentioned. Various Research Papers
authored under the same scope have taken into consideration.”

HYPOTHESIS
Kautilya’s arthashashtra is considered as a pioneer for the system of administration. Various
administrators refer to it for the guidance in their administration. The writings in arthashashtra
are meaningful in the contemporary scenario as well.

RESEARCH QUESTION
The main aim of this project is to analyse the relevance of arthashashtra in the system of
administration in the contemporary India and compare today’s situation with that of the ancient
times.

RESEARCH METHODOLOGY
This is a doctrinal research, which is based on the materials collected from different journals,
books etc.
 SUBSTANTIVE DISCUSSION AND ANALYSIS

A. UNDERSTANDING ARTHASHASTRA
To completely appreciate Arthashastra's significance, three Sanskrit terms must be
comprehended clearly: artha, shastra, and arthashastra. Artha can have a variety of connotations
in Sanskrit, including financial well-being, goal, meaning, money, purpose, pursuit, reason,
wealth, legal case, profit, and self-interest, as well as one of the primary purposes of human life
in Indian traditions as artha, dharma, kama, and moksha. In Sanskrit, shastra refers to science, or
more properly, 'an expert tradition of knowledge.' As a result, various scholars have interpreted
arthashastra differently: Kangle referred to it as'science of politics'; Boesche referred to it as
science of political economy'; Basham preferred to refer to it as a 'treatise on polity'; Kosambi
referred to it as science of material gain'; and Dutt referred to it as'science of practical life'.
Notably, economics is often referred to as arthashastra in modern Indian academic circles. In the
KA, the term vartta refers to the primary economic pursuits of 'agriculture, cattle husbandry, and
commerce,' which is why interpreting arthashastra as pure economics is inappropriate. To
appreciate Kautilya's perspective on arthashastra, it's necessary to place it within the context of
ancient Indian political traditions. Dharmashastra, the pre-Kautilya political literature, prioritised
dharma as the supreme objective among the three life goals—artha–dharma–kama—for
achieving moksha. Later on, Kautilya advanced a philosophy reconciling artha and dharma.

B. MAIN SOURCE OF MAURYAN HISTORY

Kautilya's Arthshastra is the primary source for writing the Mauryan history. The book is
structured into fifteen Adhikarans or sections and one hundred and eighty Parakaranas or
subdivisions. It has around 6000 Shlokas. Shamasastri discovered and translated the book in
1909. The book is more of a handbook for administrators than a theoretical study on
polity delving into the philosophy and fundamental concepts of administration and political
science. It is primarily concerned with the government's political difficulties and describes its
apparatus and functions in both peace and conflict.

C. CONTROVERY ABOUT ITS AUTHORSHIP

There has been considerable debate concerning the date on which arthsahstra came into
existence. According to Shamasastri, Ganapatisastri, N.N. Law, V.A. Smith, Fleet, and Jayswal,
the Prime Minister of the Chandragupta Maurya wrote Kautilya's Arthashastra. According to
Winternitz, Jolly, Keith, and Dr. Bhandarkar, the work dates from the early centuries of the
Christian era. It is argued that if the text was indeed authored by Kautilya, Chandragupta
Maurya's Prime Minister, it should contain references to the Mauryan kingdom and its
administrative system. The Arthashastra makes no mention of the Municipal Boards or Military
Boards referenced by Megasthenes2. The fact that Kautilya's thoughts are expressed in the third
person also implies that the work's true author was not him. The Arthashastra does not indicate
that its creator was particularly involved in politics. It is probable that Kautilya compiled the
book of political aphorisms that the author quotes with other writers but with a greater degree of
approbation. However, there is no way to establish that the aforementioned Kautilya is the
Mauryan Prime Minister.
Dr. Jolly asserts that the true author of Kautilya's Arthashastra was a theorist, not a statesman. He
was most likely an official in a medium-sized state. The book was ascribed to Kautilya due to the
prevalent beliefs surrounding that magnificent minister, who was regarded as the master and
inventor of law and governance, as well as the author of all floating wisdom on the subject of
Niti. Kautilya is not mentioned as the author of any literary production in the traditional
narratives. Megasthenes makes no mention of his name. The description of India in Arthashastra
does not support the author's claim that he lived in the fourth century B.C. Patanjali refers to the
Mauryas and Chandragupta's Sabha in his Mahabhashya but does not mention Kautilya. The
name Kautilya is a slang term for deception and dishonesty that could scarcely have been coined
by Chandragupta's Minister. The work is riddled with academic classifications and puerile
distinctions, and could not possibly have been written by a statesman.
Dr. Jolly dates the composition of Kautilya's Arthashastra to the third century A.D. Dr. Jolly
observes that Kautilya and Bhasa share a verse (Navam Shravam), which Kautilya interprets as a
quotation. As a result, he must have obtained it from Bhasa, who lived in the third century A.D.
In their laws, Kautilya and Yajnavalkya concur. Kautilya only turned Yajnavallka's laws into
Sutras. Yajnavalkya was founded in the third century A.D. The Rajadharama described in the
Mahabharat is a simplified version of the extensive regulations found in Kautilya's Arthashastra.
Kautilya Arthashastra is aware of the purana, implying that its date must be close to the Guptas.

2 PATRICK OLIVELLA, KING, GOVERNANCE, AND LAW IN ANCIENT INDIA KAUTILYA’S ARTHASASTRA 31-38
(OXFORD UNIVERSITY PRESS 2013)
 D. ESSENTIALS
Kautilya's Arthashastra, a book on statecraft, was composed in the fourth century B.C. during the
Maurya dynasty. The narrative was separated into fifteen portions, dubbed "books." Numerous
publications are devoted to various aspects of politics, economics, and society. The work
outlined the king's duties, the officers' code of conduct, agriculture and industry, taxation, and
inter-state interactions. Kautilya is thought to be CHANDRAGUPTA MAURYA's key
adviser.Kautilya mentioned seven elements essential for a state namely

● Swami(king)

● Janapada(people)

● Amartya(ministers)

● Danda(sovereignty)

● Kosha(treasury)

● Durga(fort-defence)

● Mitra(foreign relations)

Kautilya's Arthashastra regards the king to be the key in the working of the state administrative
machinery. It deals with all the details of the administration such as education of the princes,
duties of the king, selection of ministers, organisation of the different departments of the state,
justice, taxation, foreign policy etc.

Kautilya separated ethics from politics. He was of the view that the king may resort to ruthless
approach for the security and safety of the empire. But this does not mean that the king was
immoral. Kutilya lays much stress on morality in the personal life of the king. He should have
full control over his senses viz., lust, anger, greed, vanity, haughtiness, and pleasure, because
they have often brought the downfall of various kingdoms.

Kautilya's work is far more varied and entertaining than usual accounts of its indication. He
mixes the harsh pragmatism for which he is famed with compassion for the poor, for slaves, for
woman. He reveals the imagination of a roomancer in imagining all manner of scenarios which
can hardly have been commmon place in real life.

Kautilya had laid down much stress on the espionage system. Kautilya sometime goes to
amusingly absurd lengths to imagine varied sorts of spies. He even cynically proposes using fake
holy men for this purpose while merchant spies pretending to be his disciples and worship him as
one possesed of prenatural powers. Kautilya had laid much stress on the appointment of women
as spies as they could serve better than a men.

Kautilya has laid down the ideals of kingship thus. "In the happiness of his subjects lies his
happiness, in their welfare, his welfare, what pleases him, he shall not consider as good, but
whatever pleases his subjects he shall consider as good". Far from being single-minde dly aimed
at preserving the monarch's power for its own sake, the Arthashastra requires the ruler to benefit
and protect his citizens, including the peasants, whom Kautilya correctly believes to be the
ultimate source of the prosperity of the kingdom.

KING AND KING’S DUTY-

Kautilya elevated the earth's chief king to celestial status. On earth, these kings were said to have
performed the duties of Divine beings such as Indra and Yama. Individuals who demonstrated a
lack of regard for the king were disciplined. According to Kautilya, a king who is truly
developing must observe abstinence until the age of sixteen. He should be thoroughly prepared
in the art of decision-making by mature instructors or masters.3

Kautilya begins by referring to his ruler as the'sage-like king.' The'sage-like king' is the king who
should cultivate self-control by defeating his six adversaries, namely kama (lust), krodha (anger),
lobha (greed), mana (vanity), mada (haughtiness), and harsha (overjoy); cultivate his intellect

3 Vd Mahajan, S.Chand Ancient India, 208-09 (Vikas Publishing House Pvt.Ltd., 1960).
through association with elders; keep a watchful eye via spies; bring about security and well-
being through (energetic) activity; maintain their special duties

Thus, a set of duties for a ruler emerges in Arthashashtra, including rakhshan, or defence of the
state against external aggression; palana, or maintaining order within the state; and yogakshema,
or safeguarding the welfare, prosperity, protection, and peace of the people.

These nuances of yogakshema are conspicuously absent from Western discourse when it comes
to defining a state and its international relations. This distinction elevates Kautily to a much
higher ethical pedestal than any other textual work on state theory.

Yogakshema, as the king's primary responsibility as defined by Kautilya in Arthashastra, should

never be overlooked when reading or interpreting Arthashastra. It is necessary to mention one
such instance of Arthashastra misinterpretation here. This is also to demonstrate how a single
misinterpretation, when repeated in the scholarly community, can cause unintended as well as
misplaced damage to the text's genuine import. Boesche characterised Kautilya as more
'Machiavellian' than Machiavelli in his research work. 22 As a layman, this means that Kautilya
was unethical in guiding his king, who was capable of greater 'violence,' making Machiavelli's
prince appear more moderate in comparison to Kautilya's king. This view, however, has been
vigorously contested by a large number of scholars, including non-Indians. Liebig expresses one
such disapproval. He rejects Boesche's selective selection of isolated text from one chapter of
Arthashastra and juxtaposition of it with the narrower prism of Machiavellian realism, thus
omitting the Kautilyan 'eigenvalue' in Weberian terms. Kautilyan's 'eigenvalue' was based on a
strong sense of economy and the subject's well-being.

Kautilya does not believe in the possibility of perpetual peace. According to him, whomever is in
a position of greater strength must conduct war. Whoever ascends to power has the potential to
violate the peace pact. The king who is located anyplace in the conqueror's territory's circle is
referred to as the enemy. When a monarch of equal might dislikes peace, he should undergo the
same degree of vexation that his adversary has received. It is the power that pulls the two kings
together, as no piece of iron that has been heated to a red-hot temperature will unite with another
piece of iron. According to Kautilya, aptitude for intrigue was a more important criterion for
kinship than strength or excitement.
● According to Kautilya, a king's misfortune is more severe than a minister's-misfortune.

Amatya's

● The minister, domestic priest, and servants are appointed solely by the king. • He

employs superintendents and takes corrective action against problems.

● As is the king's behaviour, so is the people's conduct.

● The king is the state's head. RAJA RAJYAMATI is the government itself. A ruler should

not detain petitioners at his or her door. If the king does not communicate directly with
his subjects and instead delegates responsibility for dealing with common men to
middlemen, this creates a barrier between government and common men. The common
man would feel abandoned and defenceless, and state foes will seize the opportunity. As
a result, the monarch should attempt to meet with his subjects personally and make every
effort to remedy their grievances,

● The entirety of the Arthashastra is addressed to the monarch, the state's single authority.

According to Kautilya, the people were enslaved by the law of fishes, or Matsyayana,
which states that the larger fish devour the smaller. At this point in time, God created the
ruler and named him Manu. The king should be knowledgeable about all sorts of martial
arts and avoid the six human vices of lust, wrath, greed, attachment, jealousy, and pride.
In other words, Kautilya's king is comparable to Plato's philosopher king. The king
should possess the highest intellectual and emotional attributes. • The Kautilya
Arthashstra makes it quite obvious that government is eventually reducible to our
ultimate, which is the monarch. Kautilya discusses the procedures that the king should
take to win over the kingdom's favourable and hostile groups.

● According to Kautilya, a particular type of spies known as Satrins should separate

themselves into warring parties and conduct disputes in pilgrimage sites, assemblies,
residences, corporate bodies, and crowds of people. One spy should extol the king's
virtues, while the other should denounce him.
According to Kautilya, anarchy-stricken people chose Manu, the Sun's son, as their king. They
fixed 1/6th of grain and 1/10th of merchandise as well as gold as the king's share, which is
referred to as Bhaga tax. The king alone is capable of promoting his subjects' security and
prosperity. As a result, even hermits living in the forest are required to offer the king 1/6th of the
grain they gather. The king here assumes the role of Indra and Yama, the gods. Whoever offends
the king is visited by divine wrath. Lowly individuals who speak ill of the king should be
confronted. It is the people's responsibility to refrain from insulting the king.

Kautilya makes it clear that the king receives revenue from the people as compensation for his
protection services. According to him, the king is spiritually accountable for performing his
functions faithfully. He receives the taxes under this specific condition.

The king should avoid injuring other people's women and property and abstain from falsehood,
arrogance, and other evil tendencies. He should pursue pleasure while remaining mindful of
virtue and wealth. He should enjoy virtue in equal measure. The king's education and self-control
are the first requirements for a successful government. Kautilya insisted that the king rule with
the assistance of state officials and with the advice of ministeries. He was instrumental in
Amatayas's qualification. These were the texts on fear, virtue, wealth, and the law. Kautilya
summarises the views of numerous other writers on the composition of the Mantri Parishad or
Council of Ministers. However, he believes that the size of the Council of Ministers should be
determined by the circumstances and the country's needs.

Kautilya counsels the king to avoid eight distinct types of providential visitations, including fire,
flood, pestilences, famines, rats, snakes, tigers, and demons. This latter point demonstrates that
the author subscribed to popular superstitions during his lifetime. According to Kautilya, the
king should assist the unfortunate in the same way that a father assists his son. He discusses
various ways in which individuals with criminal tendencies can be apprehended with the
assistance of spies.

According to kautilya, the king must personally attend to the business of gods, heretics,
Brahamans educated in the Vedas, sacred places, minors, the elderly, the afflicted, and the
helpless, and women; and this in the order of enumeration or according to the urgency of the
works. All urgent calls will be answered immediately, but never postponed; for if they are, they
will prove too difficult or impossible to complete.

Kautilya discusses the aim of economics and the king's role before delving into his opinions on
the Treasury and taxation. Kautilya discusses the state's role in industry, commerce, and
agriculture, as well as his prescriptions for natural resource usage and conservation. Although his
work is heavily focused on the monarch's wealth, effectiveness, and well-being, his ultimate goal
was not to enrich the king but to benefit the people. He reasoned that a strong and prosperous
monarchy would be able to defend the people's interests against invasion by other kings. He has
consistently stated that the king's primary responsibility is to keep his subjects happy and should
refrain from imposing restrictive rules except in times of necessity.

Kautilya makes it abundantly obvious that the king's power is not limitless, but that he is bound
by implicit contractual obligations as part of his office — an implicit social contract exists
between the king and his subjects. Apart from sustaining current productivity in woods, factories,
mines, and herds of cattle, the monarch was also responsible for encouraging trade and
commerce through the establishment of market towns, ports, and trade routes, as well as the
construction of storage reservoirs.

As Kautilya advised, the king should be perpetually active in economic administration.

Economic activity is the source of wealth, and its absence results in material suffering. Without
productive economic activity, both current wealth and future expansion are threatened.
According to Kautilya, a monarch should be attentive in anticipating the likelihood of calamities,
attempting to avert them before they occur, overcoming those that do occur, removing any
impediments to economic activity, and avoiding revenue loss to the state. A king with a depleted
treasury eats away at the citizens' and country's very vitality. According to Kautilya, a king
should begin his day by obtaining reports on defence, revenue, and expenditure.

Kautilya grasped the concept of bounded rationality and, as a result, the necessity of establishing
a bureaucracy. He noted, "A monarch can reign only with the assistance of others; a chariot
cannot be moved by a single wheel." As a result, a king should choose experts as counsellors and
ministers and take their opinion into consideration. He delegated the execution of the king's
directives to the ministers.
He stated, "The ministers shall [constantly] consider all matters pertaining to the king as well as
those pertaining to the adversary." The king shall directly supervise the work of ministers in his
immediate vicinity. He will communicate with those who are further away via letters. The king
shall inspect the work of Heads of Departments daily, for men are fickle by nature and, like
horses, change their behaviour when put to work. Thus, the King shall become acquainted with
all the particulars of each Department or endeavour, including the officer in charge, the type of
the task, the location of the work, the time required to complete it, the precise work to be
completed, the outlay and profit. He counselled kings to treat their subjects as a father would
treat his children. He wrote, "Whenever danger threatens, the king shall support all people in
need in the same way a father protects his children."

Kautilya devised the wealth and virtue tests, as well as the pleasure and fear tests. Ministers were
appointed to those who completed all four criteria. The Arthastra elaborates on the principle of
uprightness in administration and legislative matters, describing it as the epitome of being a
King. The Vedic human growth cleansed the concept of exclusive property rights. In any case,
the King was not the nominal landowner. He fought for the area over which he had the authority
to collect assessments.

This understanding of the relationship between the King and the national is in contrast to the
conviction framework currently in place, in which the head was the fictitious landowner. As a
result, in the Confucius development, landowners did not pay regulatory costs – they paid a lease
to the State, which, via the employment of coercive instruments (danda), is tasked with rescuing
the general public from this problem. Along these lines, the state enables two entities: dharma
and the bhog (pleasure) associated with private property rights. The King was seen as a paragon
of wisdom, a protector of dharma. He, like any other citizen, was guided by his dharma. Thus, if
the King's acts contradicted the prevalent concept of dharma, groups and/or individual
individuals were free to challenge him. King was not the only one who could understand the
dharma. For the world, if maintained in line with the Vedas, will always prosper and not perish,
he claimed. As a result, the ruler shall never permit his subjects to depart from their dharma. He
said, "For when adharma triumphs over dharma, the King himself will perish."
 E. ECONOMIC IDEAS
● The Arthastra classifies the state's economy into three broad categories: agriculture, cattle

rearing, and commerce.

● It administers an autonomous economy based on indigenous techniques of production,

appropriation, and exchange, and conducts in-depth examinations of financial and

monetary arrangements, welfare, international relations, and war procedures. Arthastra,
from a variety of perspectives, depicts the India he had always desired.

● When he wrote this epic volume, the country was still mired in feudalism and a closed,

self-sufficient economy.

● The economy, which was reliant on indigenous methods of generation, was in

transformation, going toward accelerated components of dispersion and, furthermore,

generating. The manner in which trade was completed was coordinated by culture and
local government issues.

● The state amassed wealth through the production of crops, cattle, gold, forest products,

trade, and labour.

● Given the administration's tyrannical nature, everything was resolved in the interest of the

state. There was a shared administration, with divisions for records, income, mines, arms
stockpiles, tax assessment, agriculture, exchange, and transport. Apart from ensuring
current efficiency in forests, production lines, mines, and cattle groups, the ruler was also
in charge of increasing trade and commerce by establishing market towns, ports, and
exchange courses, as well as constructing capacity stores. Kautilya's work dealt with a
variety of financial subjects, including records, coinage, and commerce.

● The state regulated and controlled every aspect of economic policy.

● It was the country's largest employer. The state possessed all industrial and natural

resources.

● The state entered the market as a trader.

 ● It engaged in selling activities in the market.

● It had its own director of trade who could oversee market transactions; The revenues

generated by the sale of state-controlled assets would be directed to the treasury. The
assembly industry gained momentum during the Maurya period, roughly around the time
of Kautilya.

F. KAUTILYA ON THE CREATION AND PRESERVATION OF

WEALTH
Kautilya identified administration, human effort, the accumulation of physical capital, land
acquisition, and education as the sources of financial flourishing.

He observed, "Man without riches will never obtain it, even after a hundred attempts." Similarly
to how elephants are expected to cathches other elephants, wealth attracts additional wealth.
Wealth will vanish from the puerile man who is constantly advising the stars. It is significant that
Kautilya recognized over 2,000 years before Adam Smith, that capital accumulation increased
work efficiency. Additionally, he emphasized profitable activities. Thus, Kautilya recommended,
the KING will always be dynamic in his economic administration. Money is the foundation of
wealth, and its absence results in material distress. Without productive monetary movement, both
current and future development are jeopardized. A king can achieve his desired objectives and
amass wealth by engaging in profitable economic activity. Kautilya was concerned with both the
production of wealth and the preservation of existing wealth.

According to Kautilya, a king should be persistent in anticipating the likelihood of catastrophes,

attempting to avert them before they occur, defeating those that do occur, eliminating all
impediments to financial movement, and averting revenue loss to the state. To be honest, he
believed in the high-minded cycle of good administration, wealth, education, and moral
leadership. As was necessary, Kautilya placed a premium on good administration. Kautilya's
definition of good administration included the establishment of the foundation and national
security, the definition of proficient arrangements and their persuasive application, and the
assurance of a clean additionally, mindful organisation.
 G. PUNISHMENT FOR VIOLATING JUSTICE

He who enables a Brahman to consume of whatever food or drink is forbidden shall be executed
with the highest amercement. He who encourages a Kshatriya to do so as well shall be punished
with the middlemost amercement; a Vaisya, with the first amercement; and a Shudra, with a fine
of 54 panas. Those who voluntarily partake of whatever is condemned, either as food or drink,
should be outcastes. . . He who mounts the roof of his own house after midnight shall be
punished with the first amercement; and of another's house, with the middlemost amercement.
Those who break the fences of villages, gardens, or fields should also be punished with the
middlemost amercement. . . Harm due to the construction of unstable houses, carts with no
support, or with a beam or weapon hung above, or with damaged support, or with no covering,
and harm due to causing a cart to fall in pits, or a tank, or from a dam, shall be treated as assault.
Cutting of trees, snatching the rope with which a tameable animal is attached, employing
untamed quadrupeds, hurling sticks, dirt, stones, rods, or arrows on chariots or elephants, raising
or waving the arm against chariots or elephants, shall also be viewed as assault. . . .Whatever a
man attempts to do to others by witchcraft shall be done to himself .

A Kshatriya who commits adultery with an unguarded Brahman lady shall be punished with the
highest amercement; a Vaisya doing the same shall be robbed of the whole of his property; and a
Shudra shall be burnt alive wound round in mats. Whoever commits adultery with the queen of
the country must be burnt alive in a vessel. A man who commits adultery with a lady of low
caste shall be deported, with stipulated marks branded on his forehead, or shall be degraded to
the same caste. A Shudra or an outcaste who commits adultery with a lady of low caste shall be
put to death, while the woman shall have her ears and nose cut off. Adultery with a nun shall be
penalised with a fine of twenty-four panas, while the nun who submits herself shall likewise pay
a comparable fine. A guy who presses his connection with a harlot shall be penalised twelve
panas. When a man has connection with a woman against nature, he shall be punished with the
first amercement. A guy having sexual intercourse with another man shall also pay the first
amercement. When a foolish man has sexual intercourse with beasts, he shall be penalised twelve
panas; when he conducts the same act with idols of goddesses, he shall be fined twice as much.

CONCLUSION AND SUGGESTIONS

Ancient Indian history Political philosophy is the narrative of great minds. Kautilya, the ancient
Indian philosophers, have endowed us with their enlightened political and administrative
concepts and politics. Kautilya is regarded as ancient India's first political theorist. Kautilya's
Kautilya Arthashastra presented a definition of the state for the first time in ancient India.
Kautilya's notion of state is equivalent to the contemporary definition. Kautilya's is the first
methodical and balanced attempt to develop a philosophy extolling Artha or Wealth and
territory.
The state is first defined in Kautilya's Arthashastra as consisting of seven elements. Like his
predecessors, Kautilya used the term 'Rajya,' which Spellman equates with the English word
'State.' Kautilya likewise believed in the organic theory of state. As a result, he has also
developed Saptanga theory—the theory of the seven constituents of the state. The king was to
view himself as an agent of the people, not a swami, in Kautilya kingdom. According to
Kautilya, the king is the state's first citizen, sharing the kingdom's enjoyment with his subjects.
The Kautilya state was a welfare state that sought to provide all available resources and facilities
for the state's and its citizens' welfare. The primary objective of Kautilya state policy was to
advance social welfare. Additionally, Kautilya asserts that the state's primary role is to defend the
people and their property. The state's role is to safeguard the populace from internal insecurity
and external invasion. He desired that the state assist the poor, pregnant women, orphans, the
elderly, and the disabled. Thus, according to Kautilya, the state functions include political,
social, religious, economic, and protecting duties. Kautilyaviewsonstatefunctions and economic
system are comparable to that of a current welfare state. Throughout India's ancient history,
various systems were discovered. According to Kautilya, the monarch is the state's primary pillar
and the master of state tactics and craft. Kautilya elaborated on his administrative principles,
which vested all executive legislative, and judicial authority in the king's high position. In the
present era, caste and religious affiliation have no bearing on politics. Kautilya established the
fundamental principles of inter-state relations. Kautilya highlighted the importance of a state's
relationship with other states. His primary purpose was to establish a strong state capable of
dominating the other state. According to Kautilya, state issues cannot be carried out only by the
ruler. It is remarkable to observe that Kautilya state made measures to safeguard the common
people from the anti-social practises of the privileged classes like as performers, dancers, and so
on, even in this day and age. As with Kautilya's welfare state, the modern state is a welfare state,
and its success is largely dependent on the executive's performance. His views on the state,
governance, law and justice, administration, and foreign policy are watershed moments in
political thinking and serve as a model for all democratic states. Thus, the study addresses the
final critical topic, namely, the relevance and significance of Kautilya's political beliefs in the
present day. Kautilya was the first thinker to conceive of an all-India polity or empire
consciously.

The Arthashastra is essentially a textbook for administrators as well as a dissertation on

statecraft. It is primarily concerned with the practical concerns of administration and
exhaustively describes its machinery and operations, both in peace and conflict. Arthashastra's
theories might be revised and expanded in light of contemporary organizational experience.

BIBLIOGRAPHY

BOOKS
 1. KING, GOVERNANCE, AND LAW IN ANCIENT INDIA, BY- PATRICK OLIVELLE
(2013).
2. ANCIENT INDIA S.CHAND BY- V.D. MAHAJAN 2017(REPRINT)
3. INDIAN HISTORY BY- S.R. MYNENI 2015 (PRINT) PUBLISHER-ALLAHBAD
AGENCY

JOURNALS AND WEBSITES

1. "Commercial Practices In The Ancient Indian Peninsula: Glimpses From Kautilyas

Arthashastra", International Business &Economics Research Journal (IBER), 2014
2. www.dawn.com
3. Transparencyindia.org
4. https://www.hinduwebsite.com/history/kautilya.asp.
5. https://www.ancient.eu/Arthashastra/.
6. http://www.dtic.mil/dtic/tr/fulltext/u2/1019423.pdf.