They organised themselves in layers, and the layers grew larger and more formal over time — from kinship to territory, and from custom to law.
Society organised itself first. The chapter defines society as a system of social relationships among people who share a common territory, culture and a sense of belonging, made up of units such as families and institutions such as marriage. Its key feature is that it is regulated primarily by customs and practices rather than formal laws. In early India that meant a nested set of units:
grāma (village) — several families
viśha — a group of grāmas, headed by a viśhapati
jana — above the viśha, with the rājā as chief protector of the people
Cutting across these were gotra (a patrilineal lineage traced to a Vedic ṛiṣhi, which regulated marriage), the four varṇas, the growing number of jātis, the four āśhramas (brahmacharya, gṛihastha, vānaprastha, saṁnyāsa) and the four puruṣhārthas (dharma, artha, kāma, mokṣha).
The State organised itself as societies grew larger and more complex. A State, in the chapter's definition, is an organised political system based on rules and laws, with defined rights and duties of rulers and subjects, mechanisms of governance and institutions for enforcing law and order. Its development can be tracked in three stages:
- Kin-based polity — the rājā as clan chief who led in warfare and protected members, advised and checked by the assemblies sabhā, samiti and vidhata.
- Territorial polity — janapadas between about 1000 and 600 BCE, then the sixteen mahājanapadas from about 600 BCE to 300 CE, in two forms: monarchies (rājyas) and republics (gaṇas or saṁghas).
- Empire — Magadha grew into the Mauryan empire; later the Satavāhanas, Guptas, Pallavas, Chālukyas, Gurjara-Pratihāras, Pālas, Rāṣhṭrakūṭas and imperial Cholas. Here the king ruled through a mantri-pariṣhad and a graded machinery of provinces, districts, groups of villages and villages.