Literally, 'statement of meaning', a Pūrva Mīmāṁsā term that explains Vedic injunctions (vidhis). Its main purpose is to make us do certain good things by praising them or reject bad ones by censuring them.
Out of the six systems of Indian philosophy accepting the authority of the Vedas, the Pūrva Mīmāṁsā has devoted itself exclusively to the methods of correct interpretation of the Vedic texts. It divides the entire Veda into two parts:
- vidhi or injunction, and
- arthavāda or statements explaining or reiterating certain facts already known through other means.
Vidhi refers to supramundane affairs and has to be understood literally. In contrast to this arthavāda relates to matters of ordinary experience and hence carries with it no logical significance. Its main purpose is to make us do certain good things by praising them or reject bad ones by censuring them. Hence it should never be taken literally. For instance when it is stated that the sacrificial post is the sun, it simply means that the post is bright like the sun and is intended to commend the sacrifice in the performance of which, the post is used.
(Taken from A Concise Encyclopaedia Of Hinduism, Volume 1 by Swami Harshananda)