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Hi himanshu,
The "Vedic Mathematics" or "Magic mathematics" is called so because of its origin from Vedas. To be more specific, it has originated from "Atharva Vedas" the fourth Veda. "Atharva Veda" deals with the branches like Engineering, Mathematics, sculpture, Medicine, and all other sciences with which we are today aware of. This wonderful method is re-introduced to the world by Swami Bharati Krisna Tirtha ji Mahaharaj, Shankaracharya of Goverdhan Peath. "Vedic Mathematics" was the name given by him. He was the person who collected lost formulae from the writings of "Atharwa Vedas" and wrote them in the form of Sixteen Sutras and thirteen sub-sutras.
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