Nītiśāstra, ‘the science of nīti’, is an ancient discipline in Bhārata (India), which has a long tradition of nīti, ‘the means of leading’. A subset of Nītiśāstra is rājanīti, which includes royal policy, statesmanship, and politics. Many Nītiśāstra works list six policies meant for dealing with other kings, i.e., foreign powers. These policies are called ṣāḍguṇya. In the Arthaśāstra, Ṣāḍguṇya is seen as both a situational strategy and a deliberate strategy. Examples of Ṣāḍguṇya policies are seen even in modern times. The Pañcatantra intriguingly teaches ṣāḍguṇya in the fable of the crows and the owls.
Governance, ethics, and economic sustainability were the deeply embedded principles in the well-structured, ancient Indian taxation system. Referencing texts such as the Manusmṛti and Arthaśāstra, this paper explores the forms of taxation, prescribed rates, and administrative frameworks that governed revenue collection. Ancient scholars emphasised that taxation should be moderate. The study highlights how taxation was a moral obligation—a means for the king to ensure protection and prosperity while maintaining state functions. By examining these historical perspectives, this paper sheds light on the enduring relevance of Indian Knowledge Systems (IKS) in shaping fair and effective fiscal policies.
Economic policies in India were shaped by Euro-centric paradigms during the colonial era and a long period after independence, and by US-centric paradigms since liberalisation. Indigenous Indian knowledge paradigms and social sentiments were neglected. As a result, many of the economic activities were environmentally unfriendly. Kautilya’s Arthashastra, based on the principles of interdependence, conservation, and environmental sustainability, offers insights to develop methods and practices that can support sustainable economic development. The wisdom from Arthashastra can not only offer valuable guidance to achieve environmental sustainability in India but can influence global sustainability efforts and contribute to an environmentally friendly future.
