Contemporary Analysis of Kautilya's Arthashastra

Abstract

Abstract Kautilya, also known as Chanakya, is regarded as one of the earliest economists and political philosophers in world history. His crucial work, the Arthashastra, written around the fourth century BCE, presents a comprehensive framework of economic governance, public administration, taxation, trade, agriculture, public finance, and statecraft. Unlike modern economic theories that primarily emphasize markets and individual choice, Kautilya viewed economics as inseparable from governance, ethics, security, and social welfare. Because of ethics and values this ancient knowledge is still prevalent despite changing modern economic scenarios. The objective of this paper is to examine Kautilya's major economic principles and evaluate their relevance in addressing contemporary economic challenges such as sustainable development, public finance and good governance. The study adopts a qualitative research methodology based on review of classical texts and contemporary scholarly literature. The findings suggest that although Kautilya's ideas emerged within the context of a monarchical state, many of his economic principles remain highly applicable to modern democratic economies. The paper concludes that Kautilya's economic philosophy provides a timeless framework for achieving sustainable economic development through effective governance and ethical administration.