(a) Arthashastra is divided into fifteen books. Books I to V deal with tantra. These books deal with the discipline and training of the king, his duties, the exercise of coercive authority (danda), bureaucratic set up, duties and responsibilities of the heads of various departments, hierarchy of officials, revenue accounts, civil and criminal laws, suppression of anti-social elements and payment of officials, etc. Books VI to XIV deal with drapa. Characteristics of the state; foreign policy; dangers and calamities that may befall the king; natural disasters, such as drought and flood, military campaigns and employment of secret agencies against enemies, are the issues discussed in these books. The last book of Arthashastra contains a glossary of the technical terms used in the science of politics.

(b) Arthashastra is concerned with politics (raja-niti), political philosophy (raja-dharma), and the laws of punishment (danda-niti). But, an important observation is that Arthashastra has economic aspects as an integral part of the state and social relations. Because of this, some experts say that Arthashastra is a text in political economy. One of the principal duties of the king is to manage the wealth of the state. The word artha has come to refer to the economy and the financial aspects of the state.

(c) Commentators on Arthashastra also say that Kautilya gave almost unlimited powers to the state. For him, each king should be considered as a potential world conqueror (chakravarti). The government regulated the economic life of the country. All the important industrial enterprises were the property of the state, which also owned mines, fisheries, farms, forests, fields and shipyards etc. The state should work directly with the labour of criminals and slaves. The enterprises could also be given to the contractors for running. Police secret agents and spies infiltrated all walks of life. Punishment was the order of the day. Punishment of criminals was rigorous.