Relevance of Kautilya’s Arthashastra to Present Public Finance and Artisan Development

The Arthashastra of Kautilya is one of the earliest comprehensive treatises on governance, economics, and public administration. This paper examines the relevance of Kautilya’s principles in the context of modern public finance and artisan development. It analyzes his ideas on taxation, revenue administration, industrial regulation, and welfare policies and compares them with present-day economic practices. The study also incorporates field observations relating to artisan livelihoods, highlighting the continuity and applicability of ancient economic thought in contemporary policy frameworks. This paper examines the contemporary relevance of Kautilya’s Arthashastra in the fields of public finance and artisan development in India. The study explores how Kautilya’s principles of taxation, revenue administration, welfare orientation, and state supervision continue to influence modern governance and rural economic development. The Arthashastra emphasized efficient financial management, balanced taxation, promotion of trade and crafts, and protection of vulnerable occupational groups, particularly artisans and small producers (Kangle, 2010). These principles remain highly relevant in the context of present-day India, where rural artisans face challenges such as inadequate market access, financial insecurity, declining traditional skills, and competition from industrial products. The paper also incorporates field observations from a household survey conducted in Peddakothapally village of Nagarkurnool District, India. The survey findings reveal that many artisan households continue to depend on traditional occupations but face difficulties due to lack of institutional credit, insufficient government support, and migration of younger generations toward alternative employment. At the same time, existing welfare schemes, self-help groups, and cooperative initiatives have provided limited but meaningful economic support. The study argues that Kautilya’s approach to state-supported economic regulation, skill protection, and fair taxation offers valuable insights for strengthening contemporary public finance policies aimed at artisan welfare and rural development (Boesche, 2002). The paper concludes that integrating traditional economic wisdom with modern policy frameworks can contribute to sustainable artisan development, inclusive growth, and effective public financial administration in India. The relevance of the Arthashastra thus extends beyond historical scholarship and continues to provide practical guidance for contemporary socio-economic governance.