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THE ART OF STRATEGY FORMATION- CHANAKYA NEETI’S RELEVANCE IN MODERN INDIA

  • Daksh Gupta
  • May 23, 2024
  • 9 min read

Updated: May 26, 2024



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Kautilya, Vishnugupta, or Chanakya, no matter the name by which one knows him, but any individual who is familiar with his contributions to the world cannot overlook him. Chanakya was a master of many domains, and was one of the great politicians, economists, teachers, advisors, and philosophers. He is known to have assisted Chandragupta in ascending to power and becoming the first Mauryan emperor. Furthermore, he carried out his responsibilities as the chief advisor to the emperor and his successor. His works and ideas continue to maintain their relevance in the contemporary society. A myriad of his theories provides a direction for policymakers of a nation to act in. 


Various economists around the globe have named the 21st century as India’s century. In the post-pandemic period, India has been among the world’s fastest-growing economies. It has occurred at a time when most global economies, including those of developed nations, have witnessed economic slowdown. This is merely a glimpse of India’s extraordinary potential. The current momentum shows no signs of slowing down. The Indian government aims to develop the country in a way that places it uniquely ahead of the world. To bring about the actualisation of this aim, the government has set a target to place India among the ranks of the developed nations of the world by 2047, which would also mark a hundred years since the country’s independence. To achieve these targets, the country needs an all-round development from all fronts. 


It is remarkable that Chanakya’s theories possess such profound relevance for a country like India. Integrating his strategic ideologies and theories with the current policy formulation can lay the groundwork for the developmental trajectory that India aims to achieve in the long run. In fact, some of his theories and ideas have already been adopted by India in the past. 


At the time of independence, a major task in front of the Indian decisionmakers was to find a way to integrate India and prevent the newly formed Pakistan from gaining control over key strategic locations across India. At that time, Sardar Vallabhbhai Patel played a pivotal role in ensuring that Pakistan’s attempts to take over various areas in India remained unsuccessful. Using his intelligent foresight, he made use of the four upayas, or the ways to resolve a conflict, proposed by Chanakya to accomplish his mission. The first one is Sama, conciliation. According to Chanakya, peaceful and friendly dialogue should be used as the first resort. Patel skilfully blended diplomacy with friendly dialogue and managed to convince the rulers of several princely states to join India. For example, by engaging in amicable conversations with the rulers of several princely states such as Travancore (present-day Kerala), he convinced them to join India. 


The second way is Dana, or Dama, which means price, or paying the value. It means the use of gifts and other forms of compensation to lure the opposition into an agreement. A large number of princely states did not agree to join India after initial conversations. Therefore, in order to convince them, the Indian government offered them a fixed annual payment called ‘Privy Purse’. It acted like a financial compensation for the rulers of these princely states in exchange for them relinquishing their ruling powers over their respective states. It played a crucial role in the integration of states like Bhopal and Baroda with India. 


The next way to resolve a conflict is Bheda, the use of logic or trickery to get things done in one’s desired manner. It involves the use of methods like persuasion, propaganda, and taking advantage of the rivalries existing between different subgroups in the same unit. The success of the previous methods resulted in over 550 princely states agreeing to join India. Therefore, the use of this method was rendered unnecessary. 


According to Chanakya, if the first three methods fall short, the final course of action is Danda, the use of force, violence, and punishment to get things done. The first three methods had not worked with the Nawab of Junagadh and the Nizam of Hyderabad. Therefore, the Indian armed forces had to intervene militarily. Through a combination of economic pressure and military forces, these states were merged with India and the integration of India was completed. 


Circling back to the present, Chanakya’s views on governance, leadership, economic policies, national security, and foreign policies step into the spotlight. Chanakya laid great emphasis on the need of a powerful leader who follows an ethical route to bring about the development of his kingdom. A good leader should always focus on promoting welfare and set a good example for the masses. The current government headed by Honourable Prime Minister Narendra Modi has taken several dynamic decisions such as demonetisation, implementation of GST, etc. which align well with Chanakya’s policies. However, many argue that public opinion should be considered before going ahead with such steps.


Chanakya’s Arthashastra explores his views on taxation, resource management, infrastructure development, investment, and international trade. He believed in fair and equitable tax systems which do not prove to be an overburden on the taxpayers. In his words, taxes should be collected from individuals just like a bee collects nectar from a flower without causing any damage to it. India follows a progressive tax paying structure, with higher rates of taxes being imposed on individuals with elevated incomes. Moreover, Goods and Service Tax (GST) was introduced to promote simplification of indirect tax structure. However, there is a need to address concerns like tax evasion and other inefficiencies to promote shared prosperity. Chanakya also emphasised the sustainable use of resources to prevent their overexploitation and promote their long-term benefits. Present-day global efforts to combat environmental degradation also focus on sustainability and long term-use of resources. 


Although he is majorly lauded for his diplomacy, his understanding and views on trade were surprisingly impressive. He viewed trade and commerce as major players in promoting economic prosperity. He argued for a certain extent of state control over trade to ensure shared mutual benefits. After independence, the Indian government implemented several measures which were aimed at regulating the activities of domestic industries. Several industries were reserved exclusively for the state. Moreover, a licensing system was set up, under which firms had to take permission from the government for setting up a new industry, expanding an existing one, or diversifying into a new range of offerings. However, these measures proved to be counterproductive and the economy ran into an economic crisis in the 1980s. Therefore, liberalisation and privatisation were implemented as parts of the New Economic Policy in 1991. They were aimed at reducing the excessive amount of state control over trade. In a favourable turn of events, the economy recovered from the crisis, with positive trends of growth in the real GDP. Therefore, some measures proposed by Chanakya may not be entirely suitable in the contemporary society. There is a need to carefully evaluate them in the light of their current feasibility instead of demonstrating blind trust in them.


When it came to international trade, he prioritised national interest and mutual benefits. He felt that international trade can play an important role in promoting domestic business, attracting foreign investments and generating employment. Before 1990s, the Indian government discouraged international trade to protect the domestic industries from the well-established foreign industries. When India decided to implement globalisation, the Indian economy reaped the benefits of international trade, such as finding new markets for domestic produce and having better foreign relations. However, it is important to keep strategic considerations in mind. According to Chanakya, trade ties with potential enemies should be limited to a particular extent as they could strengthen their economies. Currently, India has kept limited trade ties with countries like Pakistan. 


Chanakya was a staunch proponent on national security. His Saptanga theory is closely correlated to national defence. Under this theory, he describes seven elements of a state which are instrumental to safeguard it. According to him, diplomacy is essential to avoid unnecessary aggression and maintain peace. India has forged strong diplomatic ties with several countries across the world. Moreover, it has invested in the defence infrastructure by focusing on indigenous production of defence equipment. These moves have contributed to making India less dependent on western nations and promoted self-reliance. 

Chanakya’s perspectives on foreign policy were strategic and aimed at developing the economy and maintaining stability in the state. He believed that collecting useful intelligence about neighbouring or enemy states was essential to identify their weaknesses and potential threats. The Rajamandal Theory and the Shadgunya Siddhant are two of his most prominent theories in foreign policy. 


The Rajamandal Theory


In his Rajamandal theory, he points out that it is possible to change one’s friends, but it is impossible to change one’s neighbours. This theory portrays a sequence of concentric circles which surround a central kingdom. The centre of these circles is known as the vijigishu, the state with ambitions and desires, usually the one which is being referred to. In the present context, India can be seen as a vijigishu, a country with goals, ambitions, and a vision. Chanakya states that geographically contiguous states are natural enemies, or ari. India has a long history of animosity against Pakistan. Several territorial disputes, cultural and regional differences, and other geopolitical issues have contributed to the widening gulf between the two nations. A mitra is a friendly state. Such states serve as reliable economic partners, strategic allies, and security partners. Lately, Bangladesh and Bhutan have been allies to India, and are, therefore, friendly states.

An arimitra is an enemy’s friend. Chanakya advises to remain cautious when it comes to dealing with such states, because an enemy’s friend is also an enemy. China is one of Pakistan’s greatest allies. India has already run into disputes on various fronts with the country. An ariari is an enemy’s enemy. The vijigishu should try and befriend such states, because an enemy’s enemy is a friend. India has befriended Japan, which is China’s enemy. The two countries have worked together on infrastructure development. Moreover, both nations hold deep respect for each other’s culture. A parshnigraha is an enemy in the rear. There are several nations which aim to improve their standing in the global arena and may prove to be potential threats for developing countries like India. An akranda is defined as a friend in the rear, or a friend which is needed as a backup. Israel, France, and Russia have openly shown support to India on various geopolitical issues. These countries have also been dependable trade partners. India has also developed friendly relations with USA, which is an enemy to China. 


Shadgunya Siddhant


Chanakya’s Shadgunya Siddhant is a six-fold policy technique, which lays down six ways of dealing with internal and external dilemmas confronted by a state. The principle of sandhi, which means a treaty or an agreement to maintain harmony, involves the use of methods which promote peace. It involves developing diplomatic ties with foreign nations to foster mutual interests. India has actively been a part of various global groupings like BRICS, SAARC, etc. which aim to promote cooperation among group members. The principle of vigraha is the use of force by waging a war to achieve a goal.

For instance, in 1971, India intervened militarily to provide aid in Bangladesh’s freedom struggle. Asana demonstrates the use of a neutral stance when dealing with certain complex situations. In the recent Russia-Ukraine war, India chose the path of neutrality, and avoided taking any sides. Yaan involves the execution of several diplomatic operations to gain an advantage over foes. The instances of the surgical strike and the Balakot airstrike undertaken by the Indian armed forces against terror camps in Pakistan as a response to the increasing terrorist activities serve as examples of the principle. The principle of samashraya refers to finding shelter for the purpose of forming strategic alliances and dealing with common threats. India has formed strong relations with USA and Japan to deal with the growing threat of China. Lastly, the principle of dwaidbhava implies the use of a dual policy approach which includes methods like creating discord to achieve diplomatic goals. 


India’s foreign policy has been applauded across the globe. In recent times, India has managed to maintain friendly relations with Russia and the West, despite the growing strain in relations between the West and Russia. It is a testament to India’s growing international reputation and standing. The increasing growth rate and infrastructural development provide a strong base for India to propel itself among the ranks of the developed nations in the future. Some of Chanakya’s ideas are questioned by critics. However, it is important to keep in mind that these ideas came up in ancient times and are considered to be relevant in those times. These ideas need to be appropriately bended to suit the modern era. For India, it is essential to not to lose focus. It is important to learn from the mistakes that other developed nations have committed, since there will never be enough time for India to commit those mistakes and then learn from them in the future. By embracing Chanakya’s ideas and teachings without blindly trusting them and forming appropriate policies, India can map out a path to sustainable development in the long run and serve as a beacon for the world to emulate. 


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