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.

The author of the oldest extant Sanskrit grammar was Panini, a native of extreme north-west India, ... His work consists of nearly 4000 aphorisms, each of which owing to the extreme conciseness of the style, generally consists of not more than two or three words. Hence, the whole grammar could be printed within the compass of about thirty-five octavo pages. Yet it describes the entire Sanskrit language with a completeness which has never been equalled elsewhere. Thus it is at once the shortest and the fullest grammar in the world.

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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).

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

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.

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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.

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Next we have the Vārttikas or "Notes" of Kātyāyana (probably third century B.C.) on 1245 of Pāṇini's rules, and, somewhat later, numerous grammatical Kārikās or comments in metrical form: all this critical work was collected by Patanjali in his Mahābhāshya or "Great Commentary," with supplementary comments of his own. He deals with 1713 rules of Pāṇini.

A treatise called Astadhyayi (or Astaka) is Panini's major work. It consists of eight chapters, each subdivided into quarter chapters. In this work Panini distinguishes between the language of sacred texts and the usual language of communication. Panini gives formal production rules and definitions to describe Sanskrit grammar. Starting with about 1700 basic elements like nouns, verbs, vowels, consonants he put them into classes. The construction of sentences, compound nouns etc., is explained as ordered rules operating on underlying structures in a manner similar to modern theory. In many ways Panini's constructions are similar to the way that a mathematical function is defined today.

Panini’s grammar is the earliest scientific grammar in the world, the earliest extant grammar of any language, and one of the greatest ever written. It was the discovery of Sanskrit by the West, at the end of the 18th century, and the study of Indian methods of analyzing language that revolutionized our study of language and grammar, and gave rise to our science of comparative philology … The study of language in India was much more objective and scientific than in Greece or Rome. The interest was in empirical investigation of language, rather than philosophical and syntactical. Indian study of language was as objective as the dissection of a body by an anatomist.

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 current language Pāṇini describes is very close in structure to the late Vedic found in certain Brāhmaṇa texts. As noted earlier, scholars have recognized other varieties of Sanskrit. Epic Sanskrit is so called because it is represented principally in the two epics, Mahābhārata (“Great Epic of the Bhārata Dynasty”) and Rāmāyaṇa (“Romance of Rāma”). In the latter the term saṃskṛta ‘adorned, cultivated, purified (by grammar)’ is encountered, possibly for the first time with reference to the language. The date of composition for the core of early Epic Sanskrit is considered to be in the centuries just preceding the Common Era.