Balancing Prosperity and Ethics: Economics through the Lens of Indian Knowledge Traditions

Abstract

The Indian Knowledge System (IKS) encompasses a wide range of intellectual traditions that developed in India over millennia, covering philosophy, sciences, arts, medicine, governance, and economics. Among these, economic thought has played a vital role in shaping ancient and medieval Indian society. Classical texts such as the Arthashastra, Manusmriti, and Mahabharata reflect detailed insights into taxation, trade, labour relations, property rights, and welfare economics. Rooted in ethical and spiritual frameworks, Indian economic thought integrated material prosperity (artha) with social responsibility (dharma) and ultimate liberation (moksha). This paper examines the interlinkages between IKS and economics, analysing ancient frameworks of wealth creation, resource distribution, and governance, while also assessing their relevance to modern economic theory and sustainable development. This research paper explores the intricate relationship between dharma (righteous duty) and artha (material prosperity) in ancient Indian philosophical traditions and examines their relevance to contemporary economic thought. The paper analyses how the Indian knowledge system offers a unique framework for understanding economics that integrates material wealth with moral and ethical considerations. Through examination of classical texts including the Arthashastra, Mahabharata, and various Puranas, this study demonstrates how the dharma-artha paradigm provides valuable insights for addressing modern economic challenges including sustainability, corporate responsibility, and inclusive development.