While there was no element of territoriality in the Rigvedic polity, there was a definite transition to a territorial government in the later-Vedic phase. It was possible because of certain changes in the material basis of the people. An expansion and shift in the centre of activity was made possible by the use of iron tools and weapons.
In the later-Vedic period small communities merged to became larger units. The Bharatas and Purus of the Rigvedic period came together to become the Kuru tribe who allied with the Panchalas, and the two together occupied the whole of the western UP. Now the rulers claimed a portion of agricultural produces as regular taxes.
Society became differentiated on the basis of Varna hierarchy. Consequently, the nature of the kingship was transformed. Gradually the territorial element asserted itself. The elaborate coronation ritual called Rajasuya, extending over two years, required a fixed place. In the Kuru- Panchala region the place of royal seat came to be known as asandivat. In the ratnahavimsi ceremony the king had to approach dignitaries who lived in permanent dwellings.
The Aitareya Brahmana enumerates ten forms of government prevalent in different parts of the country, which shows that power was established at fixed geographical locations. Ekraja may mean a ruler whose authority was undisputed in his domain. The Satapatha Brahmana called the king Rastrabhrita or sustainers of the kingdom.
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Towards the end of the later-Vedic period the territorial idea generated a sense of possession over the land. Now the king claimed to grant a part of the land with the consent of the clan.
The king now belonged to a Kshatriya class who tried to enlist the support of the priests for domination over the mass of the people. The king was now called the protector of the brahmanas and devourer of the enemies.
In the later-Vedic age the kingship became hereditary. A formula from the Satapatha Brahmana could be used to secure kingship for ten generations. We also come across the term rajaputra, which can be interpreted as the king’s son in many cases. In the later-Vedic phase the divine elements came to be associated with the king.
This period also marks the firm beginning of a proper taxation system and administrative machinery. The term Visamatta (eater of the people) used for the king shows that he lived on tributes collected from his kinsmen and others. We hear of an official called bhagadugha who distributed shares on behalf of the chief.
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The twelve ratnins seem to have been officials. Towards the end of the Vedic period army emerged as an important element in the Vedic polity. In some senses the later- Vedic period marks also the beginning of royal bodyguards. It is also thought that the references to sthapati and satpati indicate the beginnings of a regular system of provincial administration and adhikrta is regarded as a village officer appointed by the king.
The rise of large territorial states made it difficult for the popular assemblies to function as they did earlier. Consequently the sabha and samiti got an aristocratic flavour and came to be monopolised by the male gender, and some of their activities were taken over by the officials.