Economics in the Indian Knowledge System: A Philosophical Survey

Abstract

The Indian Knowledge System (IKS) presents a comprehensive and integrative framework in which economic thought is deeply embedded within ethical, philosophical, and socio-cultural dimensions. This paper undertakes a philosophical survey of economics in IKS, examining how classical Indian traditions conceptualize economic life not merely as a material pursuit but as an ethically regulated and socially oriented activity. Drawing upon foundational sources such as the Vedas, Upaniṣads, Arthaśāstra, Dharmaśāstras, and Buddhist and Jain texts, the study explores key principles including Dharma as a moral regulator, Artha as a legitimate yet subordinate aim, and the broader Purushārtha framework guiding human life. Through a qualitative and interpretative methodology, the paper analyzes themes such as welfare orientation, distributive justice, state intervention, sustainability, and moral economy, highlighting their relevance in contrast to modern neoclassical economics, which often prioritizes individual utility maximization and market efficiency. The study further engages in a comparative evaluation, demonstrating that Indian economic thought aligns more closely with contemporary approaches such as welfare economics, ecological economics, and capability theory. By situating economic activity within a normative and holistic worldview, IKS offers an alternative paradigm that emphasizes balance between material prosperity, ethical responsibility, and environmental sustainability. The paper concludes that revisiting Indian economic philosophy can contribute meaningfully to addressing present-day global challenges, including inequality, ecological crises, and ethical deficits in economic systems, thereby enriching contemporary economic discourse with culturally grounded and philosophically robust insights.