Satkaryavada is a hypothesis according to which the effect pre-exists in a potential state. The causal process involves a modification of a stable underlying reality. The effect is not produced as a reality that is distinct from its underlying cause. It is a specific rearrangement of that causal substrate.

The Samkhya system is based on the principle of Satkaryavada. The effect pre-exists in the cause here. Cause and effect are seen as temporal aspects of the same thing. It is considered as theory of existent causes. The effect lies latent in the cause which in turn seeds the next effect. It maintains that effect is real. Before its manifestation it is present cause in a potential form.

According to Satkaryavada principle the cause is hidden inside the effect. This effect exists due to several reasons- 1.what is nonexistent cannot be produced; 2.for producing a specific material cause is resorted to; 3.everything cannot be produced; 4.a specific material cause is capable of producing a specific product alone that effect; 5.there is a particular cause for a particular effect. Adi Sankaracharya found Satkaryavada as a useful tool against the doctrine of Annica or momentariness. Two branches of Satkaryavada are vivartavada and parinamavada.

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