Thursday, 6 August 2026

Chanakya’s Arthashastra: Why It Matters Again

The US Deputy Secretary Christopher Landau recently hinted that America won’t repeat with India the economic blunders it made with China, meaning, America can’t afford another rising challenger.

Arthashastra by Chanakya is a treatise on strategic statecraft through trade, politics, military, and economics - a manual for: How to win against an adversary!

Ironically, it is read more outside India than inside India.

Chanakya lays out a 4-stage playbook to subjugate an opponent: Saam, Daam, Dand, Bhed = Persuasion, Inducement, Punishment, Division. 

We all know of the 'Divide and Rule' method that the British used.

Well, we’re seeing that playbook in action again.

Stage 1: Saam or Persuasion

Right after Independence, India was a living poverty poster. The West convinced, read threatened, our leaders to “stay in line.”  

We stayed straight. We were helpless.  

That was Saam at work.

But slowly, we recovered.

Stage 2: Daam or Inducement

As soon as we went bankrupt, the money lenders, like vultures, swooped in. We got loans from the IMF in exchange for a bit of our sovereignty and gold. 

Imports began to pour in and development of some of our core industries got stalled. 

We simply complied. We were needy.

That was Daam at play. 

But slowly, we recovered.

Stage 3: Dand or Punishment

In 1998, Vajpayee led BJP came to power.  

Ignoring international pressure, his first big call was to go ahead with our nuclear tests. In less than 2 months in power, Pokhran nuclear blasts were heard by Indians but it shook the world capitals. 

Sanctions followed. We suffered a little temporarily. 

That was Dand at play.

We absorbed it, recovered fast, and moved on.

The Counter-Arthashasta

Enter Narendra Damodardas Modi, the first PM to have been born in independent India. After 30 long years, BJP had won by absolute majority on the fervor of highly pitched patriotism. He hit the ground running and began to unshackle India from its colonial baggage. 

Soon, Modi found the Indian stage too small. He made the world his arena by engaging the Global North, South, East, and West.

On the strength of Atmanirbharta, he set his agenda on transforming India into a Viksit Bharat!

Under him, India has mastered statecraft:

1. Trade: Several mega BTAs signed.
2. Politics: A stable government with the BJP led coalition at near a 2/3rd majority.  
3. Defense: From importer to manufacturer and exporter of arms, backed by the success of Operation Sindoor.
4. Economy: A “Goldilocks” economy in the middle of global wars and economic  upheaval.

This is India's Counter-Arthashastra 101 on display!

Stage 4: Bhed or Division

The adversary now has only one card left. It is being used to weaken and divide India from within. 

Here's how it's unfolding:

A) The constant objections in the parliament by the opposition even on frivolous topics or subjects of national importance, or the selective social media outcry and street protests on narrow issues,  are not random. They are to keep us divided and quarreling. 

B) The unreasonable US tariffs on India for buying energy from Russia is not an inadvertent error. It is to hurt us economically and isolate a rising star. 

C) The US objections against the Foreign Contribution (Regulation) Act amendment bill, amounting to pushing for covert use of its donations within India, is not a request for a casual rights. Without transparency or accountability, the funds can be misused for creating instability or even regime change. 

That's an attempt at Bhed

But we're now awakened and alert. 

The Bottom Line

Let’s be clear:  Chanakya offered us a strategic plan 2,300 years ago. The tools haven’t changed. Only the players have.

India has now moved from being the target of Arthashastra to becoming its practitioner!

1 comment:

  1. Brilliant blog! Specific to the key message

    ReplyDelete