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Sanskrit · 1st–3rd c. CE; by tradition 4th c. BCE

Arthaśāstraअर्थशास्त्र

A manual of statecraft, economy and administration. 38 passages in the chapters come from it.

What it is
15 books, 150 chapters and 180 topics, mostly in short prose rules with some verse
Composed
Tradition places it in the 4th century BCE. Many scholars think the text we have was put together later, perhaps between the 1st and 3rd centuries CE, from older material
By
Ascribed to Kauṭilya, whom later tradition identifies with Cāṇakya, minister to Candragupta Maurya
References on this site
Book.chapter.verse in R. P. Kangle's critical edition (1960–65): 1.19.34 is book 1, chapter 19, verse 34. Older translations number differently, so check which numbering your edition follows.

The fullest ancient Indian work on running a state. It covers the ruler's training and daily routine, how to choose and test ministers, the treasury and revenue, the superintendents of mines, trade, agriculture, weights and measures, the courts, spies, war and diplomacy, including its theory of the circle of neighbouring states.

The text was lost for centuries. In 1905 a manuscript reached R. Shamasastry at the Oriental Library in Mysore; he published the Sanskrit in 1909 and an English translation in 1915. Its detail on administration, revenue and accounts is why management writers return to it.

Read it in full

Translations in print

  • R. P. Kangle, The Kauṭilīya Arthaśāstra, 3 parts (University of Bombay, 1960–65)
  • Patrick Olivelle, King, Governance, and Law in Ancient India: Kauṭilya's Arthaśāstra (Oxford, 2013)

Names with marks such as ā, ṣ or ṛ are explained in how to read the names and terms.

The 38 passages the chapters quote

  1. DocumentedUnit 1 · Management and Its Principles

    Authority and responsibility and the ruler's accountability

    Read it in its chapter
    “In the happiness of his subjects lies the king's happiness; in their welfare, his welfare.” प्रजासुखे सुखं राज्ञः प्रजानां च हिते हितम् । prajāsukhe sukhaṃ rājñaḥ prajānāṃ ca hite hitam. Arthaśāstra 1.19.34

    Discuss

  2. DocumentedUnit 1 · Management and Its Principles

    Initiative and utthāna

    Read it in its chapter
    “The root of wealth is activity; its absence brings ruin.” अर्थस्य मूलमुत्थानमनर्थस्य विपर्ययः । arthasya mūlam utthānam anarthasya viparyayaḥ. Arthaśāstra 1.19.35; Bhagavad Gītā 18.26

    Also cites: Bhagavad GītāDiscuss

  3. DocumentedUnit 1 · Theories of Management

    Classical and the Arthaśāstra as a management manual

    Read it in its chapter
    Arthaśāstra, Book 2 (Adhyakṣapracāra)

    Discuss

  4. DocumentedUnit 1 · Decision Making

    The decision process and the five limbs of counsel

    Read it in its chapter
    मन्त्रपूर्वाः सर्वारम्भाः । mantrapūrvāḥ sarvārambhāḥ. “All undertakings are preceded by counsel.” Arthaśāstra 1.15.2; five limbs at 1.15.42

    Discuss

  5. My viewUnit 1 · Decision Making

    SWOT and the seven elements of the state

    Read it in its chapter
    स्वाम्यमात्यजनपददुर्गकोशदण्डमित्राणि प्रकृतयः । svāmy-amātya-janapada-durga-kośa-daṇḍa-mitrāṇi prakṛtayaḥ. Arthaśāstra 6.1.1

    Discuss

  6. DocumentedUnit 1 · Organisation Structure

    Delegation and the one-wheeled cart

    Read it in its chapter
    “Kingship is possible only with assistance; one wheel alone does not move.” सहायसाध्यं राजत्वं चक्रमेकं न वर्तते । sahāyasādhyaṃ rājatvaṃ cakram ekaṃ na vartate. Arthaśāstra 1.7.9

    Discuss

  7. DocumentedUnit 1 · Organisation Structure

    Functional structure and departmental superintendents

    Read it in its chapter
    Arthaśāstra, Book 2

    Discuss

  8. DocumentedUnit 1 · Business Economics and Demand

    The definition of economics and the definition of artha

    Read it in its chapter
    मनुष्याणां वृत्तिरर्थः । manuṣyāṇāṃ vṛttir arthaḥ. “The livelihood of people is wealth.” Arthaśāstra 15.1.1

    Discuss

  9. DocumentedUnit 1 · Business Economics and Demand

    Price regulation in the market

    Read it in its chapter
    Arthaśāstra 2.16; margins at 4.2

    Discuss

  10. My viewUnit 1 · Elasticity of Demand

    Intervening where demand cannot adjust

    Read it in its chapter
    Arthaśāstra 2.16 and 4.2 (trade regulation); 4.3 (remedies against calamities)

    Discuss

  11. My viewUnit 1 · Indifference Curve Analysis

    The budget line and spreading effort across three aims

    Read it in its chapter
    धर्मार्थाविरोधेन कामं सेवेत । dharmārthāvirodhena kāmaṃ seveta. Arthaśāstra 1.7.3

    Discuss

  12. DocumentedUnit 1 · Market Structures

    Oligopoly and collusion and traders who combine

    Read it in its chapter
    Arthaśāstra 4.2 (control of traders)

    Discuss

  13. My viewUnit 1 · Market Structures

    Price discrimination and different margins for different goods

    Read it in its chapter
    Arthaśāstra 2.16; margins at 4.2

    Discuss

  14. DocumentedUnit 1 · Market Structures

    Monopoly power exercised by the state

    Read it in its chapter
    Arthaśāstra, Book 2 (superintendents of mines and manufactures)

    Discuss

  15. My viewUnit 1 · National Income and Inflation

    National accounts and the sources of revenue

    Read it in its chapter
    समाहर्ता दुर्गं राष्ट्रं खनिं सेतुं वनं व्रजं वणिक्पथं चावेक्षेत । samāhartā durgaṃ rāṣṭraṃ khaniṃ setuṃ vanaṃ vrajaṃ vaṇikpathaṃ cāvekṣeta. Arthaśāstra 2.6.1; accounts office at 2.7

    Discuss

  16. My viewUnit 1 · National Income and Inflation

    Price control measures and regulation and relief

    Read it in its chapter
    Arthaśāstra 2.16; 4.2; 4.3; the mint at 2.12

    Discuss

  17. DocumentedUnit 1 · Corporate Governance

    Agency problem and the tasting of the king's wealth

    Read it in its chapter
    Arthaśāstra 2.9 (conduct and embezzlement by officials)

    Discuss

  18. DocumentedUnit 1 · Corporate Governance

    Stakeholder-first leadership

    Read it in its chapter
    Arthaśāstra 1.19.34

    Discuss

  19. DocumentedUnit 2 · Organisational Behaviour

    Bureaucracy's rules and records and the accounts office

    Read it in its chapter
    Arthaśāstra 2.7

    Discuss

  20. DocumentedUnit 2 · Culture and Climate

    Culture set from the top and the ruler's energy

    Read it in its chapter
    “When the ruler is active, his servants rise with him; when he is careless, they are careless too.” राजानमुत्थितमनूत्तिष्ठन्ते भृत्याः । प्रमाद्यन्तमनुप्रमाद्यन्ति । rājānam utthitam anūttiṣṭhante bhṛtyāḥ; pramādyantam anupramādyanti. Arthaśāstra 1.19.1–2

    Discuss

  21. My viewUnit 2 · Justice and Whistleblowing

    Internal whistleblowing channels and a ruler who can be reached

    Read it in its chapter
    Arthaśāstra 1.19

    Discuss

  22. DocumentedUnit 2 · Recruitment and Selection

    Selection's secret trials and the four allurements

    Read it in its chapter
    Arthaśāstra 1.10

    Discuss

  23. DocumentedUnit 2 · Job Analysis and Design

    A graded pay structure and Kauṭilya's salary scale

    Read it in its chapter
    Arthaśāstra 5.3

    Discuss

  24. DocumentedUnit 2 · Compensation Management

    Compensation for dependants and provision for families

    Read it in its chapter
    Arthaśāstra 5.3

    Discuss

  25. DocumentedUnit 2 · Compensation Management

    Welfare at life events and help at death, sickness and childbirth

    Read it in its chapter
    “On occasions of death, sickness and childbirth among them, let him help with money, with honour and with service.” प्रेतव्याधितसूतिकाकृत्येषु चैषामर्थमानकर्म कुर्यात् । preta-vyādhita-sūtikā-kṛtyeṣu caiṣām artha-māna-karma kuryāt. Arthaśāstra 5.3.30

    Discuss

  26. DocumentedUnit 4 · Accounting Principles

    Periodic accounts to a fixed form and the accounts office

    Read it in its chapter
    Arthaśāstra 2.7

    Discuss

  27. My viewUnit 4 · Financial Statements

    The statement of income and expenditure and the sources of revenue

    Read it in its chapter
    समाहर्ता दुर्गं राष्ट्रं खनिं सेतुं वनं व्रजं वणिक्पथं चावेक्षेत । samāhartā durgaṃ rāṣṭraṃ khaniṃ setuṃ vanaṃ vrajaṃ vaṇikpathaṃ cāvekṣeta. Arthaśāstra 2.6.1; accounts office at 2.7

    Discuss

  28. My viewUnit 4 · Capital Structure

    Agency cost theory and the tasting of the king’s wealth

    Read it in its chapter
    Arthaśāstra 2.9 (conduct and embezzlement by officials)

    Discuss

  29. DocumentedUnit 6 · Internal Analysis and SWOT

    Finding internal weaknesses and calamities of the constituents

    Read it in its chapter
    Arthaśāstra 8.1

    Discuss

  30. DocumentedUnit 6 · Internal Analysis and SWOT

    SWOT before a campaign and power, place and time

    Read it in its chapter
    Arthaśāstra 9.1

    Discuss

  31. DocumentedUnit 6 · Growth and Diversification

    Choosing a grand strategy and the six measures

    Read it in its chapter
    सन्धिविग्रहआसनयानसंश्रयद्वैधीभावाः षाड्गुण्यम् । sandhi-vigraha-āsana-yāna-saṃśraya-dvaidhībhāvāḥ ṣāḍguṇyam. “Peace, war, staying quiet, marching, seeking shelter and the double policy make up the six measures.” Arthaśāstra 7.1

    Discuss

  32. My viewUnit 6 · Growth and Diversification

    Backward integration and the treasury and the mines

    Read it in its chapter
    आकरप्रभवः कोशः । कोशाद्दण्डः प्रजायते । ākaraprabhavaḥ kośaḥ, kośād daṇḍaḥ prajāyate. “The treasury has its source in the mines; from the treasury the army is born.” Arthaśāstra 2.12

    Discuss

  33. DocumentedUnit 6 · Alliances, Going Global, Retrenchment

    Sharing in a joint venture and undertakings in partnership

    Read it in its chapter
    Arthaśāstra 3.14

    Discuss

  34. DocumentedUnit 7 · Distribution and Supply Chains

    Inventory and safety stock and the storehouse

    Read it in its chapter
    Arthaśāstra 2.15

    Discuss

  35. DocumentedUnit 7 · Distribution and Supply Chains

    Choosing transport routes and comparing trade routes

    Read it in its chapter
    Arthaśāstra 7.12

    Discuss

  36. DocumentedUnit 7 · Buying Behaviour

    Expert evaluation in organisational buying and examining goods for the treasury

    Read it in its chapter
    Arthaśāstra 2.11

    Discuss

  37. DocumentedUnit 7 · Retail Marketing

    Trust at the point of sale and honest weights and measures

    Read it in its chapter
    Arthaśāstra 2.19; traders at 4.2

    Discuss

  38. DocumentedUnit 7 · International Marketing

    Trading abroad and trade in foreign territory

    Read it in its chapter
    Arthaśāstra 2.16

    Discuss

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