The phrase dharma sanātana occurs in classical Sanskrit literature, for example, in the Manusmrti (4-138) composed around 5th century BCE and in the Bhagavata Purana.
In the late 19th century, the term was revived during the Hindu revivalism movement as a name for Hinduism as a religion in order to avoid having to use the term “Hindu” which is of non-native Persian origin.
Today, Sanatana Dharma is associated only with Hinduism. In current-day usage, the term sanatana dharma is diminished and used to emphasize a “traditional” or sanatani (“eternalist”) outlook in contrast to the socio-political Hinduism embraced by movements such as the Arya Samaj. In sharp contrast to the efforts by Lahore Sanatana Dharma Sabha to preserve the Hindu tradition against the onslaught of reform, now it is being stressed that Sanatan Dharma cannot be rigid, it has to be inclusive without excluding the best and totality of knowledge to guide the karmic process, especially as Sanatan has no beginning and no end.
Competition with Other Denominations
Sanatanis and reformists (such as the Arya Samaj, the Radha Soamis and the Ramakrishna Mission) have competed for adherents for more than a century, sometimes creating deep schisms in Hindu society, as in the case of South African Hindus who were split between the Arya Samaj and Sanatanis. While the reformist groups were better organized initially, by the 1860s, a process of internal counter-reform was underway in Sanatani groups as well, and societies to propagate orthodox beliefs along modern lines emerged, such as Sanatan Dharm Rakshini Sabha in 1873. Some religious commentators have compared the Sanatani-Samaji dichotomy within Hinduism as similar to the Catholic-Protestant division in Christianity.