Abstract: In the modern economic and commercial geography, the topics generally dealt with are agriculture, irrigation, cattlerearing, various mineral resources, industries and commerce, transport and communication, population and census of men and animals. The general notion, however, is that ancient Indians had no sense or concept of economic and commercial geography and they were totally ignorant of the methodology of these two branches of knowledge. This paper strives to prove that the above view is totally erroneous and that the Arthaçästra of Kauöilya exhibits profound knowledge of the above branches of geography; not only this: its dialectics and methodology of the treatment of the above mentioned subjects also are much in conformity with the established modern principles and methodology of presentation.