Ancient Indian Economic Thought and Contemporary Indian Macroeconomic Policy: An Indian Knowledge System Perspective

Gopal Kumar Sarma

Pages: 1-13

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Abstract:

This paper investigates the importance of ancient Indian economic thoughts for modern Indian macroeconomic policy from the perspective of the Indian Knowledge System (IKS). Based on documentary evidence from the Rig Veda, Arthashastra and Dharmashastra, the study develops an integrated conceptual framework synthesising classical economic ideas in five interrelated dimensions: productive economy, fiscal prudence, institutional governance, welfare orientation and sustainable development. This study uses a qualitative conceptual research design with documentary and thematic analysis to find lasting normative and institutional concepts contained within these classical writings. The findings imply that ancient Indian economic thinking provides a comprehensive view of economic administration in which affluence, ethical conduct, institutional efficiency, public welfare, and environmental stewardship are interconnected goals. The study does not argue that ancient Indian texts anticipated modern macroeconomic theory, but that these offer complementary ethical and institutional perspectives that can enrich contemporary policy discourse. The suggested paradigm contributes to the burgeoning literature on the Indian Knowledge System by providing a systematic analytical lens to analyse indigenous economic theory in connection to modern macroeconomic policy. The study finds that the inclusion of these lasting principles in current policy debates will help foster more inclusive, institutionally strong and sustainable ways of achieving economic development in India.

Keywords:

Ancient Indian Economic Thought; Indian Knowledge System; Macroeconomic Policy; Institutional Governance; Sustainable Development

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