The more one delves into the seminal work, Arthashastra, the more one marvels at how current and topical Kautilya is to the present dynamic and uncertain economic and social milieu. In fact, Kautilya's work has relevance not only in contemporary India, but in the entire contemporary world. Though written in Sanskrit, which was the predominant language at that time, Arthashastra is still unique in the entire canon of Indian Literature, because of its unabashed advocacy of real politic and disciplined economic management.
Though the general impression is that Kautilya had not written much about economics, the fact is that Kautilya by taking a holistic and integrated approach to governance, had provided a new dimension to the field of economics, which unfortunately has remained neglected all this time. Economics works well with resource management, efficient administration, a fair judicial system, knowledgeable people with integrity, capable of taking up high positions.
Another important dimension – economic growth with equity and social welfare – as suggested by Kautilya, would render sustainability to the economy's management system. His most important contribution pertains to treasury management which, as mentioned in earlier pages, was designed in a holistic way. This included the ruler being honest, committed, and truly deserving of his position, the required systems and procedures and norms that are to be observed being in place, and clearly spelt out. There should be several routes of treasury replenishment, which have to be transparently laid down. The strength of the treasury depended upon the accumulation of wealth by the State which was made possible by the fact that the King was the principal and residual owner of all the property. For example, land which was not specifically owned by individual was assumed to be the King's property. All water resources belonged to the King and users were required to pay the King for its use.
What is most striking is Kautilya's penchant for pragmatic and realistic perspectives on crucial determinants of governance. It is strange that even today we continue to grapple with problems to which Kautilya had pointed straightforward solutions 2400 years ago. This implies that at some stage, something went wrong with our approach. What Kautilya propagated was tackling fundamental problems relating not just to the economy but also to human resource management, which is not practised in its true spirit today. Hence, there is an urgent need to revisit Kautilyan economics.
The relevance of Kautilyan thoughts in the Indian economy gains another dimension when judged in the context of the general perception that India along with China is likely to drive global economy in the 21st century. The relevance of Kautilyan economics could enable India to pursue a holistic and integrated development plan. The realisation of this dream requires that all areas of public policy and governance are streamlined to create an enabling and supportive environment. Here, Kautilya's work would prove most useful.