POLITICAL SCIENCE RESEARCH PAPER

SEMESTER II

TOPIC: KAUTILYA’S ARTHASHASHTRA

SUBMITTED TO:
PROF. SARANYA NAIR
ASST. PROFESSOR
NMIMS KPMSOL

SUBMITTED BY:
SANSKRUTI SURYAWANSHI
A045
81012100076
Academic year- 2021-2022

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TABLE OF CONTENTS

SR. NO. TOPICS PG. NO.

1. INTRODUCTION 3

2. RESEARCH OBJECTIVE 4

3. RESEARCH QUESTIONS 4

4. RESEARCH METHODOLOGY 4

5. LITERATURE REVIEW 5

6. CHAPTER 1 6

7. CHAPTER 2 10

8. CHAPTER 3 13

9. CONCLUSION 14

10. REFERENCES 15

11. BIBLIOGRAPHY 15

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INTRODUCTION:
Artha is one of the purusharthas, Dharma, kama, and moksha are the other purusharthas. Artha
has a far broader connotation than simply riches. The nation's swath includes the land and its
population, and wealth is the source of livelihood. Shastra is the science through which a
country's wealth is obtained and preserved in order to achieve the goal of Dharma in the context
of a nation in Artrhashashtra.

The Arthashastra is a form of political diplomacy that originated in India and is exemplified by
Kautilya's written material on position, policy, and military strategy. Kautilya was a professor
at Taxila University and eventually the Mauryan Empire's Prime Minister. Because of his
unquestionable and intelligent strategies and policies, which match a "realist" approach to
politics, diplomacy, and warfare, he is known as the Indian Machiavelli. His Arthashastra
treatise advised that no measures were beyond a ruler's scope to extend his territory or gain
power, as well as the unethical ethics of allowing torture, trickery, deception, and spying as
valid tactics to gain territory, money, and power.

The ancient Indian compilation of political knowledge, theory, and statecraft, Kautilyas
Arthashastra, gives insight. It is a compendium of timeless notions that is one of the main
political and strategic treatises. The value and relevancy of such techniques and concepts in
today's environment might be beneficial. Some of the ideas might be useful in achieving long-
term advantages and resolving some of the most pressing concerns confronting many countries
today. The Kautilya’s Arthashastra gives advice to a wise monarch on how to advance the
state's national interests, which are centred on concerns of security, riches, and reputation.
Three primary aims run from one to the other throughout the Arthashastra: effective
government, promotion of the welfare of the subjects, and sound economy, which leads to the
accumulation of money, which allows for the extension of territory. Diplomacy is essentially
intended to accomplish world conquest and consolidation. As a result, six foreign policy steps
are advised to help the leader manage the state's transition from a state of decline to one of
stabilization, and then to development or advancement. The policy to be used is determined by
the relative power, strategic environment, and political dynamics. The policy's goal is to expand
the state's authority at the expense of the opponent. The Arthashastra is thus considered the
earliest thorough exposition of political realism. War, according to Kautilya, is a manifestation
of a state's foreign policy. He advises a monarch on how to use aspects of national authority to
attain a condition of perpetual advantage. This great plan is provided by Kautilya.

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RESEARCH OBJECTIVE:

• To critically analyze the political and economic ideas of Kautilya.

• To find whether Kautilya’s Arthashashtra is still relevant in the new era.
• Comparative study of Kautilya with Plato and Machiavelli.

RESEARCH QUESTIONS:

1. What were the political and economic ideas of Kautilya in Arthashashtra?

2. Whether Kautilya’s Arthashashtra is still relevant in the 21st century?
3. What are the similarities between Kautilya and Plato and Kautilya and Machiavelli?

RESEARCH METHODOLOGY:

The researcher employed the conceptual research technique to finish the assignment, the
information was gathered from a range of secondary sources such as publications and journals.
The study also employed other sources such as the internet.

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LITERATURE REVIEW:

(Liebig) According to the author, Kautilya's Arthashastra, a classic work of political theory and
statecraft, has stayed on the periphery of political science and strategic debate not only in the
West but also in India. What is the relationship between modern India and Kautilya? Using
Bourdieu's idea of 'habitus,' the author explores first Nehru’s ‘special connection' with
Kautilya, and then the mostly 'latent presence' of Kautilyan thinking among the political,
academic, and strategic elites of today's India. He investigates the strange confluence of social
science schools that has tended to stifle an active, but critical, engagement with Kautilyan
philosophy. Finally, he offers evidence of active 're-use' of indigenous politico-cultural
resources in India, notably Kautilya.

(Muniapan) This study examines the corporate governance teachings from Kautilya's
Arthashastra, stressing Kautilya's contribution to ancient India (4th Century BC). The
principles from Kautilya's Arthashastra are still applicable today and may be used to current
corporate management in order to achieve corporate governance's ultimate goal of providing
value to shareholders and stakeholders. It argues that there is a need to examine and re-examine
some historic works from time to time in order to produce an intelligent interpretation and re-
interpretation that can be applied successfully in the context of current business management.
Future study might look at the implications of analyzing Kautilya's Arthashastra in other areas
of corporate management, such as strategic management, financial management, and human
resource management.

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 CHAPTER 1

Political and Economic ideas of Kautilya in Arthshastra

The essence of Kautilya's economic treatise is that a perfect balance between state
administration and people's welfare must be maintained. 2,500 years ago, the Arthshastra was
written. He was an outstanding statesman as well as a brilliant scholar. "Economics is the most
significant part because it provides the foundation for human life and survival," he said. He
was a key figure in the establishment of the Maurya Dynasty. With the support of strong
administration and excellent fiscal management, the empire was able to achieve expansion and
stability under his leadership. He believed in public welfare because, while his work focused
heavily on the monarch's riches, effectiveness, and well-being, his true goal was to assist the
people, not the king.

WELFARE STATE

Arthsashtra sets the philosophical groundwork for India's transformation into the world's first
welfare state. He is a strong supporter of welfare in all areas. He didn't just talk about human
wellbeing; he also talked about animal welfare. "The king's pleasure resides in the happiness
of his subjects, and their wellbeing lies in his welfare," he says. He must not view merely what
pleases him as excellent, but shall regard as helpful to him whatever pleases his subjects." He
argues for the protection of livelihoods, the vulnerable sections of society, consumer protection,
and even prisoner care. In defending his people, the King's dharma is to be just, fair, and liberal.
His attitude toward his people should be similar to a father's approach toward his offspring.
"Who is ever engaged in advancing the welfare of the people and who endears himself by
enriching the public and doing good to them," Kautilya said of the perfect monarch.

GOOD GOVERNANCE

The term "governance" refers to all elements of a country's administration, including its
economic policies and regulatory structure. Kautilya was an expert in a variety of areas of
government, including taxation, diplomacy, commerce, business, and administration. He was
considered to have a good understanding of medicine and astrology. It is a political economy
book akin to Machiavelli's The Prince, and as a result, he has been likened to both Machiavelli

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and Aristotle and Plato by some. Kautilya discusses the organisation of a state's economy, the
selection of ministers, the conduct of war, and the distribution of revenue.

He adopts a comprehensive approach to governance and delves into various key aspects of a
country's operation. National security and foreign policy, administration of justice, economic
development policies, taxation, labour management, and financial management are the primary
divisions. According to him, successful administration necessitates the achievement and
realisation of the state's goals. This is made feasible by well-managed and supervised
administration. He believes that good government should avoid making rash judgments and

According to Kautilya, successful governance requires a properly led public administration, in

which the monarch must yield his own preferences in the interests of his citizens, and
government officials must be responsive and accountable. Kautilya went on to say that for
citizen-friendly good governance, there needs to be consistency in administrative practises, as
well as competent ministers and officials with qualities of leadership, accountability, intellect,
energy, good moral conduct, and physical fitness, as well as the ability to make quick decisions.
The notion of governance, according to Kaufmann and Kraay, is not new. Kautilya emphasized
justice, ethics, and anti-autocratic inclinations as important pillars of the art of government. He
went on to say that the king's job is to "defend the state's and its subjects' riches, to increase,
preserve, and secure such wealth as well as the interests of the people." The planet will be
conquered by a king who dispenses justice based on four principles: righteousness, evidence,
case history, and current legislation.

FOREIGN TRADE

Foreign trade has always been a crucial element of every economy's success. Foreign
commerce in products and services is a primary mechanism for generating state income,
according to Kautilya. He believes that international commerce should be fostered by offering
incentives such as tax exemptions to enable foreign traders to prosper. Imports were given a
high priority by him. He went on to say that overseas commerce helps to improve the
availability of things that aren't always available locally. Imports allow a country to receive
items from other countries at a lower cost. In this approach, he developed a comparative
advantage perspective on international commerce. He stated that it is advantageous to the many
kingdoms when imported goods are less expensive than those available domestically. He
understood that trade based on comparative advantage would be advantageous to both

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exporting and importing countries. The Treasury relies heavily on trade for revenue. Kautilya
believes that tariffs, both export and import charges, should be used. Kautilya believes that
recruiting foreigners with excellent technological skills is a good idea.

He believes that tariffs, both import and export charges, should be used. He proposed that large
taxes be levied on luxury products imported from other countries, while light levies be applied
on things for everyday use. Import tariffs should be waived for any item that is extremely
helpful to the country. He was the first to mention that a passport is required to traverse borders.

GROWTH ORIENTED PUBLIC EXPENDITURE

Kautilya believed that the majority of tax money should be spent on constructive enterprises
and public welfare. He discussed various areas where the state should spend money, such as
national defense, public administration, and ministerial salaries, government departments, the
maintenance of national storehouses and granaries, the maintenance of armies, and the
acquisition of valuable gems, stones, and ornaments, with the remainder going to the treasury.

TAXATION

Kautilya once said, "King must collect taxes like honey bees, enough to survive but not too
much to destroy". Kautilya implies a straight-line income tax. Fairness, tax structure stability,
fiscal federalism, avoidance of high taxes, guaranteeing tax compliance, and subsidies to
stimulate capital formation are all priorities for him. Many postulates of Kautilya's theory of
political economics are pertinent to modern times, such as restricting the state's taxing
authority, having modest rates of taxes, maintaining a progressive increase in taxation, and,
most crucially, establishing a tax system that maintained compliance. In an ideal world, the
government should collect taxes in the same way that a honeybee collects precisely the correct
quantity of honey from bloom to ensure that both live.

Kautilya's taxation policy included components such as taxpayer sacrifice, direct benefit to
taxpayers, revenue redistribution, and tax incentives for targeted investments. He proposed a
tax holiday as an incentive, meaning that everyone who cultivates additional land should be
exempt from agricultural tax for at least two years. He promotes a mixed economy and argues
for the government to have a more active role. His discussion on taxation led to the following

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three principles: taxation authority is restricted, taxation should not be heavy and excessive,
and tax increases should be modest. He proposes a taxation and revenue-spending structure
that will increase the economy's long-term revenue-generating capability.

INFRASTRUCTURE

According to Kautilya, infrastructure is particularly vital for the growth of the state, as well as
for boosting commercial and trade operations. He proposes that the government invest in
transportation infrastructure. An Analytical Study of the Relevance of Arthshastra in Modern
India, with a focus on roads, in order to enhance international commerce and commercial
activity, as well as state income. Roads would aid in the expansion of both indigenous and
foreign goods markets.

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 CHAPTER 2

Comparing Kautilya with Plato and Machiavelli

COMPARING KAUTILYA AND PLATO

In terms of social structure, belief in autocracy, stress on values of honesty, and supporting the
elite in society, Kautilya and Plato have a lot in common. While Plato backed slavery, Kautilya
supported caste system and approved of lower castes performing menial labor. Both men,
however, never go into depth about slavery or rationalize it as an institution. Plato and Kautilya
both believed that the state should be administered by the educated and elites, and that
democracy was a bad notion. They believed that democracy would lead to chaos. Plato and
Kautilya favored the notion of a military class and believed that the rulers should be drawn
from that group. Furthermore, since Kautilya and Plato believed in the condition of happiness
for the nation, they believed in the monarchs' honesty and right behavior toward their citizens.

The significant distinction between these two scholars is their support for various aspects of
society. While Kautilya preferred Brahmins or priests to draught laws and policies, he also
preferred soldiers to reign. Plato, for example, preferred aristocracy to rule and serve as the
society's brains. Furthermore, Plato was a philosopher rather than a politician, but Kautilya was
a seasoned politician with philosophical ideals. This is significant because Kautilya has been
chastised for being harsh and wicked in his treatise, but I relate this to his being on the extreme
side of realism as a politician.

Plato lived in a world of minor nations, with Athens serving as the only big empire. Kautilya
was a member of a big state with a centralized administration and an expanding empire. The
state's construction was another significant distinction between them. Plato believed that the
state's focus should be on unity and the common good, but Kautilya felt that the state's
concentration should be on the military, and that a powerful state can only be produced by a
strong military. Plato made relatively little contribution to foreign affairs in terms of diplomacy,
and in fact believed that international trade had a bad impact on the state.

Kautilya, on the other hand, has given much attention to diplomacy and foreign affairs. In the
same way that Plato saw the state as a supplier of rule of law, Kautilya collects value from
citizens through taxes and redistributes income. In general, I believe Plato functioned in a
simpler setting, and his thought process provided the groundwork for future European

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statesmen and legislators. Because Kautilya was a part of a complex network and was entangled
in politics, his book is less philosophical and less idealistic.

COMPARING KAUTILYA WITH MACHIAVELLI

Kautilya's writing is founded on his myths and beliefs, whereas Machiavelli works mostly on
his own experiences and historical instances. One of the advantages of Kautilya's work is that
his imagination has given it a solid framework that will remain for a long time. Furthermore,
Machiavelli's work may be viewed as one of the subgroups of Kautilya's statecraft. The work
of Kautilya has the flaw of not being empirical or time tested. Yes, his King Maurya utilized
parts of his works, although they were rejected by King Ashoka as nasty and deceitful.
Furthermore, Machiavelli's terminology is quite educated, whereas Kautilya utilizes short
words to illustrate his point.

Though it may appear to be more of a matter of education and expression, I believe language
is a symbol of diplomacy and delicacy. Kautilya has a reputation for being harsh and brutal
when dealing with spies and espionage in general, and this linguistic difference further adds to
that reputation. Machiavelli, in my opinion, was a wise guy who did not wish to put down what
was already understood intuitively. Both Machiavelli and Kautilya believe in a single state and
support the imperialism of their respective rulers. Both of these guys call for wartime flexibility
and betrayal. They recognize the importance of diplomacy yet do not discourage their rulers
from going to battle.

They both think that the people or society must be respected, and that multiple traditions must
be permitted in order for the state to remain stable. One intriguing thing here is that it appears
that both of these individuals believed that domestic stability and exterior war victories were
mutually exclusive. They both think that religion should serve the state, but whereas
Machiavelli appears to oppose religion at times, Kautilya rejects religion and believes in the
existing social and religious order. Both Machiavelli and Kautilya succeeded in blurring the
line between usefulness and morality. It's disputed who was more immoral in battle, but they
were both realists led not by religion, but by their conviction in the notion of state and the craft
required to administer a state.

This was due to their ability to discern between morality that ruled the state and morals that
regulated individuals. They both desired a world system in which their country was at the

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center, as well as social and economic fairness and a global order. The divergence only exists
in the world order, where Kautilya argues that the world social order should be based on the
caste system in India, which is in stark contrast to Machiavelli's contemporary world order.
Why didn't Machiavelli attempt to explain the many techniques of subtle war fare or diplomacy
as written by Kautilya remains an essential topic. Unlike Kautilya, who had an unrestrained
passion for political reality, Machiavelli's moderating factor appears to have come from his
yearning for a republican virtue.

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 CHAPTER 3

Relevance of Arthshashtra in Modern Time

Kautilya, also known as Chanakya or Vishnugupta, was an important political thinker in India.
Despite the fact that he lived a long time ago, several concepts from his thought are still valid
today. The book, which is written in Sanskrit, explores theories and concepts of state
governance. Kautilya established a critical imperative: government, polity, politics, and
progress must all be tied to people's well-being. After discussing some of Kautilya's economic
views, it can be concluded that while the vocabulary used in Arthsashtra may have changed,
the nature and role of the state in the economic system appear to remain constant in all
situations.

It is a book of law and a treatise on administering a country that is still relevant today, covering
numerous issues on administration, politics, and the economics. His views are still prevalent in
India today. He laid a solid foundation for economic science. It provides a wealth of economic
concepts on international commerce, taxation, government spending, agriculture, and industry.
Stability and good governance are intrinsically intertwined. There is stability when rulers are
responsive, responsible, removable, and recallable. Otherwise, there will be insecurity. This is
especially true in today's democratic environment. Taxation that is too high should be avoided.
If tax rates are too high, the people will refuse to pay the tax and would seek out ways to avoid
paying it. Taxation at a low rate will result in greater money for the state.

He was well aware that trade terms were influenced by a variety of factors, not only economics.
In the absence of specific protections and policy measures, there is no autonomous system that
will ensure that a nation benefits from trade. Kautilya's economic concepts revolve upon social
welfare. The government was expected to assist the impoverished and defenceless, as well as
to take an active role in contributing to the welfare of its citizenry. Kautilya's emphasis on
human capital production is still significant today since progress is impossible without human
capital accumulation. Apart from these ideals, there are a lot of things in Arthsashtra that are
extremely important, such as natural resource conservation. Arthsashtra has a wealth of
economic information, and some of his theories are still applicable today.

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CONCLUSION

Kautilya's Arthshastra provides a sound economic foundation. It contains important economic

data. It may be used to demonstrate a variety of contemporary economic ideas and can be
applied to a glen of current significance. To assist the economy, thrive, he advocated a variety
of different economic policy proposals. If human nature remains the same and nations behave
as they have in the past, Kautilya is relevant. Because the state's continued existence is
dependent on moral order, Kautilya contended that the state is a fragile organisation, and that
no statesman has the moral right to risk its survival on ethical restraint. As a result, national
security must take precedence above moral principles.

Kautilya went on to say that a well-governed state will be less vulnerable to subversion and
insurrection, and thus be in a better position to disturb its opponents' domestic stability. It would
also be able to move more confidently towards taking actions that require a wider mobilisation
of economic and military might. A state that ignores the quality of its administrative elite and
institutions, which are critical to policy implementation, puts itself in grave danger. Thus, India,
as an emerging force in the twenty-first century, need a Comprehensive National Strategy with
clearly defined National Priorities, which must be taken from our ancient all-encompassing
treatise of Arthashashtra, authored 2,400 years ago.

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REFERENCES:

• Liebig, Michael. "Kautilya’s Relevance for India Today." JSTOR (2013): 99-116.
• Muniapan, Balakrishnan. "Lessons in corporate governance from Kautilya, Arthashastra
in ancient India." Inderscience online (2007): 50-61.

• Boesche, Roger. "Kautilya's Arthasastra on war and diplomacy in ancient India." The
Journal of Military History 67.1 (2003): 9-37.

• Idris, Murad. "Political theory and the politics of comparison." Political Theory (2016):
0090591716659812.

• Rangarajan, L. N., ed. The arthashastra. Penguin Books India, 1992.

BIBLIOGRAPHY:

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April 2022 )

• https://www.economicsdiscussion.net/articles/economic-ideas-of-kautilya-with-critical-
estimate/21140 (accessed on 27th April 2022)

• https://swarajyamag.com/featured/chanakya-and-machiavelli-two-realists-in-comparison
(accessed on 25th April 2022)

• https://www.scirp.org/journal/paperinformation.aspx?paperid=75066 (accessed on 27th

April 2022)

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April 2022)

• https://www.exoticindiaart.com/book/details/state-in-plato-s-republic-and-kautilya-s-
arthsastra-naf655/ (accessed on 29th April 2022)

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