QUE: “Kautilya’s Economics – A discussion on the art of governance, economic policies and military strategy.” Check its relevance in the contemporary and present context.
March 6, 2026
It is mentioned in Kautilya’s Economics that the Mauryan period was an important period in the development of the Indian administrative system. Kautilya’s Economics has a huge contribution in the foundation of the progress of this Mauryan period. Important decisions and plans were made on its basis.
- Kautilya’s Economics from the point of view of governance
- State institutionalization is an important requirement for human progress, public welfare and public protection, it is mentioned in Kautilya’s Economics.
- The principle of “welfare state” in Part – 4 of the Indian Constitution can be considered equivalent to this.
- At that time, the method of decentralization was adopted for effective administration. Today, after the 73rd and 74th amendments to the Constitution, the decentralization system has become stronger.
- Kautilya has mentioned in his Arthashastra that it is the duty of the government to maintain law and order through punishment. Currently, laws like IPC 1860, CRPC etc. show this.
- Information is available about personnel administration. Today, that department is functioning under the Prime Minister.
- Economic policies
- Kautilya was in favor of creating wealth through economic activities. He considered the prosperity of the state to be the basis of the power of the state. In the present world, the economic prosperity of a country increases the size of that country. This can be clearly seen.
- However, in Kautilya’s model, economic activity was controlled by the state, while today, importance is given to a free market economy.
- According to Kautilya, at that time, 1/4 or 1/6 tax was levied on agriculture. Today, the subject of determining agricultural tax is decided by the state government.
- According to Kautilya’s economics, the purpose of planning was control. While in modern times, the purpose of planning is development.
- It is mentioned that a system similar to the present budget system (income and expenditure) was also seen at that time.
- Military strategy
- There is mention of the system of War Office for the administration of matters related to the army. At present, the Ministry of Defense can be called its equivalent.
- The five wings of the army – infantry, cavalry, elephants, chariots, transport, etc. were the main ones. Megasthenes has also mentioned the navy. But, there was a lack of a system like the air force. Today it is proving to be very important.
- Apart from this, the spy had an important role. He played the role of the eyes and ears of the king. Today, RAW, IB etc. are doing that work for the country.
- Thus, there are many similarities between the matters mentioned in Kautilya’s Arthashastra and the current system.
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