Lessons in financial management from Kautilya’s Arthashastra

“Finance” is to business what “blood” is to body. Every country has its own unique culture and accordingly the style of management has to be chosen and if it comes to Indian Management System, most of the principles are based on the Indian Scriptures and Literature and one of such treasures is Kautilya’s Arthashastra. Kautilya was a professor of Political Science and Economics at University of Taxila (ISO: Tak asilaVisvavidyalaya) and later he became the Prime Minister of the Mauryan Empire. A famous teacher, philosopher, Jurist, Economist and Royal Advisor of ancient India, Kautilya, popularly known as Chanakya, is the author of the famous political treatise Arthashatra. Chanakya was adherent to the principles of ‘Prabhu Shakti’or Vision, ‘Mantra Shakti’or Mission,and ‘Utsah Shakti’or Motivation. And he advised the ruler of the State (Svamin) to manage his kingdom on these significant principles. Chanakya’s teachings are relevant in today’s world also and can be utilised to solve various problems related to all aspects of human life. ThePrinciples of Management from the Arthashastra, can serve as the guiding force to the managers of organizations. Kautilya’s contribution in the field of Financial Management is also commendable and can help the managers to manage the finance. The primary aim of the present paper is to study what lessons have been given by Kautilya in Arthashastra and how finance managers in modern era can utilise them to achieve their objectives.