Panini, the ancient grammarian (probably belonged to 5th century or sixth century BC) mentions a character called Vasudeva son of Vasudeva, and also mentions Kaurava and Arjuna which testifies to Vasudeva Krishna, Arjuna and Kauravas being contemporaries. Megasthenes (350-290 BC), a Greek ethnographer and an ambassador of Seleucus I to the court of Chandragupta Maurya mentioned about Herakles in his famous work Indica. Many scholars have suggested that the deity identified as Herakles was Krishna

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Though its fame is much restricted by its specialized nature, there is no doubt that Panini's grammar is one of the greatest intellectual achievements of any ancient civilization, and the most detailed and scientific grammar composed before the 19th century in any part of the world.

While Pāṇini's work is purely grammatical and lexicographic, cultural and geographical inferences can be drawn from the vocabulary he uses in examples, and from his references to fellow grammarians, which show he was a northwestern person. New deities referred to in his work include Vasudeva (4.3.98). The concept of dharma is attested in his example sentence dharmam carati "he observes the law" (cf. Taittiriya Upanishad 1.11).

Sanskrit is constructed like geometry and follows a rigorous logic. It is theoretically possible to explain the meaning of the words according to the combined sense of the relative letters, syllables and roots. Sanskrit has no meanings by connotations and consequently does not age. Panini's language is in no way different from that of Hindu scholars conferring in Sanskrit today.

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The most interesting non-Western grammatical tradition—and the most original and independent—is that of India, which dates back at least two and one-half millennia and which culminates with the grammar of Panini, of the 5th century BCE. There are three major ways in which the Sanskrit tradition has had an impact on modern linguistic scholarship.

The Pāṇinian commentator Kātyāyana (c. 3rd–4th century BCE) knew of the coexistence of Middle Indic forms with earlier ones. There is a Pāṇinian rule that provides that verb bases listed in an appendix to the Aṣṭādhyāyī have the class name dhātu (verbal base, root). Kātyāyana discusses whether one could define verbal bases semantically and thereby possibly do without the verb list. He remarks that even if one defines a verbal base as denoting an action, the roots must be listed in order to preclude the possibility that constituents of terms such as āṇapayati/āṇavayati ‘commands’ be assigned the class name in question; āṇapayati/āṇavayati is a Middle Indic counterpart of Sanskrit ājñāpayati.

We pass at once into the magnificent edifice which bears the name of Panini as its architect and which justly commands the wonder and admiration of everyone who enters, and which, by the very fact of its sufficing for all the phenomenon which language presents, bespeaks at once the marvelous ingenuity of its inventor and his profound penetration of the entire material of the language.

The accepted cultivated speech of the contemporary language that Pāṇini describes in his Aṣṭādhyāyī must have coexisted with more vernacular varieties of speech in which there were features belonging to the Middle Indo-Aryan division of the language group. Several facts support this view.

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It is not certain whether Pāṇini used writing for the composition of his work, though it is generally agreed that he knew of a form of writing, based on references to words such as "script" and "scribe" in his Ashtadhyayi. These must have referred to Aramaic or early Kharosthi writing. It is believed by some that a work of such complexity would have been difficult to compile without written notes, though others have argued that he might have composed it with the help of a group of students whose memories served him as 'notepads' (as is typical in Vedic learning). Writing first reappears in India in the form of the Brāhmī script from the 3rd century BC in the Ashokan inscriptions.

Panini was a Sanskrit grammarian who gave a comprehensive and scientific theory of phonetics, phonology, and morphology. Sanskrit was the classical literary language of the Indian Hindus and Panini is considered the founder of the language and literature. It is interesting to note that the word "Sanskrit" means "complete" or "perfect" and it was thought of as the divine language, or language of the gods.

The word `Sanskrit' means “prepared, pure, refined or prefect”. It was not for nothing that it was called the `devavani' (language of the Gods). It has an outstanding place in our culture and indeed was recognized as a language of rare sublimity by the whole world. Sanskrit was the language of our philosophers, our scientists, our mathematicians, our poets and playwrights, our grammarians, our jurists, etc. In grammar, Panini and Patanjali (authors of Ashtadhyayi and the Mahabhashya) have no equals in the world; in astronomy and mathematics the works of Aryabhata, Brahmagupta and Bhaskara opened up new frontiers for mankind, as did the works of Charaka and Sushruta in medicine.