Ancient Indian economic thought provides a valuable intellectual foundation for understanding governance, public finance, and development policy. Among classical texts, Kautilya’s Arthashastra stands out as one of the earliest systematic treatises on political economy and economic administration. Written during the Mauryan period in the fourth century BCE, the Arthashastra presents an elaborate framework of economic governance that includes taxation policy, agricultural management, industrial regulation, trade administration, infrastructure development, and public welfare. Kautilya emphasized that the prosperity of a state depends upon the economic well-being of its citizens. According to him, the ruler must establish institutions that encourage productive activities, maintain efficient fiscal administration, regulate markets, and ensure the welfare of society. These principles resonate strongly with contemporary development economics, which emphasizes the role of the state in facilitating growth, maintaining macroeconomic stability, and investing in public goods. In modern India, economic policy is directed toward sustaining high growth, expanding infrastructure, improving agricultural productivity, strengthening manufacturing, and enhancing investments in health and human capital. The Economic Survey 2025–26 notes that India continues to remain one of the fastest-growing major economies in the world, with real GDP growth projected around 7 percent, supported by strong domestic demand, increased public investment in infrastructure, and resilient agricultural output (Government of India, 2026). This paper examines the economic philosophy of Kautilya and evaluates its relevance for contemporary development policy in five important sectors: taxation, infrastructure development, agriculture, industry, and health. The analysis suggests that several ideas articulated in the Arthashastra correspond closely with modern economic policy frameworks. Integrating insights from ancient Indian economic thought with contemporary development strategies can provide a more holistic approach to sustainable and inclusive economic development.