In Swami Dayananda's view, the term Arya was not coterminous with the term Hindu. The classical meaning of the word Arya is 'noble'. It is used as an… - Koenraad Elst

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In Swami Dayananda's view, the term Arya was not coterminous with the term Hindu. The classical meaning of the word Arya is 'noble'. It is used as an honorific term of address, used in addressing the honoured ones in ancient Indian parlance. The term Hindu is reluctantly accepted as a descriptive term for the contemporary Hindu society and all its varied beliefs and practices, while the term Arya is normative and designates Hinduism as it ought to be. ... Elsewhere in Hindu society, 'Arya' was and is considered a synonym for 'Hindu', except that it may be broader, viz. by unambiguously including Buddhism and Jainism. Thus, the Constitution of the 'independent, indivisible and sovereign monarchical Hindu kingdom' (Art.3:1) of Nepal take care to include the Buddhist minority by ordaining the king to uphold 'Aryan culture and Hindu religion' (Art.20: 1). ... The Arya Samaj's misgivings about the term Hindu already arose in tempore non suspecto, long before it became a dirty Word under Jawaharlal Nehru and a cause of legal disadvantage under the 1950 Constitution. Swami Dayananda Saraswati rightly objected that the term had been given by foreigners (who, moreover, gave all kinds of derogatory meanings to it) and considered that dependence on an exonym is a bit sub-standard for a highly literate and self-expressive civilization. This argument retains a certain validity: the self-identification of Hindus as 'Hindu' can never be more than a second-best option. On the other hand, it is the most practical choice in the short run, and most Hindus don't seem to pine for an alternative.