Hindu Philosophy on Evolution – Shiva Purana

During the 1-13 chapters Section 7.1 of Vayaviva-saṃhita of Shiva Purana, Shiva informed about the philosophy on evolution and creation of living beings.
Shiva rules over all the worlds through the Jivas. He is the sole lord of infinite Shakti who presides over all causes and is released from Time—Death. He is the cause. He has no beginning, no end. His body is not the creation of Prakriti. He is both the liberated and liberator. He is not influenced by Time.
Karma is merit and sin. The fruits are happiness and misery. The great Atman is comprehended only by the enlightened mind. It is neither woman nor man nor a eunuch. It is neither above nor below nor in the sides. It is nowhere. The Purusha becomes happy, miserable or deluded on becoming associated with the body.

Cause of Evolution –
Kapila discovered that when the unintelligent inert (Jada) i.e. unconscious Prakriti comes in contact with the intelligent conscious Purusha, evolution of the universe begins. Prakriti is illumined by a spiritual light of the Purusha, it becomes conscious, and that state is described as Mahat, the first state before the evolution of the phenomenal objects.

Evolution of Physical World –
The God Brahma created the Brahmaṇḍa, the cosmic egg. Vishnu broke it and the upper portion became the sky, the lower portion the earth and the netherworlds. Each Brahmaṇḍa is said to encompass fourteen realms or Lokas. Of these, the eighth from the bottom, called Mṛtyuloka, relates to the earth, where humans inhabit. Above Mṛtyuloka, the higher realms (jointly called ‘svarga’) are inhabited by devatas, seers and higher beings, while the lower regions (called ‘patala’ as a group) are inhabited by Daityas, nocturnal creatures, and lower beings. Individually, fourteen-realm Brahmaṇḍa is stated to have eight sheaths. These material components refer to, in ascending order, pṛthvi, jala, teja, vayu, akasha, ahaṃkara, mahattattva and prakṛti (i.e., both Pradhana-Prakriti and Mula-Prakriti).

Evolution of Deities –
The Shruti says that Shiva is superior to all; he creates Hiraṇyagarbha (Vishnu) the first among the deities. The Maya of Shiva is the unborn mother of the universe.
By means of the fourteen attributes of the Atman Purusha pursues worldly activities.
From Vairaja Purusha originates Brahma, Vishnu and Mahesha. Then from Brahma extends the rest of the creation for jivas (souls). Marichi, the first son of Brahma, and others like him who supervise the procreation and protection of life, and hence are called Prajapati (literally, ‘lords of the people’). Finally, from them are formed Indra and other devatas (divinities), Daityas (demons), humans, animals, vegetation, and all other moveable and immovable life-forms.

Evolution of life elements –
Brahma is the first embodied soul, called Purusha. He is the first creator of living beings. Brahma thus existed in the beginning. From him was born the cosmic intellect, the cause of virtue and prosperity, with the characteristics of wisdom and detachment. When cosmic intellect was agitated the ego was born. The ego was split into three. The ego split into the gross and subtle elements and the sense-organs. When the ego had the Sattva predominant the Satvik creation took place. The secondary creation took place simultaneously.
Unmanifest becomes manifest through Kalas (Time). Briefly the unmanifest with its ramifications is as follows: —five subtle, five gross elements, five sense-organs of activity and the set of four, viz. Pradhana, intellect, ego and mind. When it is in the state of a cause, it is unmanifest; when it is in the state of an effect such as the body, pot etc, it is manifest. The five sense-organs, the five organs of activity and the eleventh the mind, originated. The mind is both an organ of knowledge and of activity.
When the ego becomes associated with Tamas, the Bhuta tanmatras are born. Since it is the cause of Bhutas it is called Bhutadi. From this is born the Shabda tanmatra, from this the ether. From the ether the Sparsha tanmatra, from its Vayu, from Vayu the Rupa tanmatra, from this the Tejas, from Tejas the Rasa tanmatra is born. From Rasa the water; from this the Gandha Tanmatra is born, from this the Prithivi, from these elements the mobile and immobile beings are created. Since they are presided over by Purusha and blessed by Avyakta the principles beginning with Mahat and ending with Visheṣa generate the cosmic egg.
Dissolution of universe takes place when there is equilibrium of the Guṇas (Satva, Rajas & Tamas). When this is upset, creation takes place. In each day in the life of Brahma, the fourteen Manus come and go.

Creation through sexual means –
Brahma could not create many living beings through asexual means. Hence, he made great penance of Shiva with the holy and excellent hymn “Ardhanarishvara Stotra” to create living beings through sexual means. Shiva granted the desire of Brahma. The excellent lord created Shakti, the goddess from a part of his body. At the instance of Brahma, she became the daughter of Daksha. From the woman-half was born Shatarupa. The man-half created Viraja, called Svayambhuva Manu, the first creation. They had two sons, Priyavrata and Uttanapada. She bore two daughters (Akuti and Prasuti). Lord Manu gave Prasuti to Daksha. Brahma gave Akuti to Ruci.  Lord Daksha begot of Prasuti, the daughter of Svayambhuva, twenty-four daughters called the mothers of the world.
Lord Dharma took thirteen of his daughters as his wives. They were Shraddha, Lakshmi, Dhrti, Puṣhti, Tushṭi, Medha, Kriya, Buddhi, Lajja, Vapu, Shanti, Siddhi and Kirti the thirteenth. The other eleven were Khyati, Sati, Asambhuti, Smrti, Priti, Kṣama, Sannati, Anasuya, Urja, Svaha and Svadha. The sages Bhṛgu, Sarva, Marici, Angiras, Pulaha, Kratu, Pulastya, Atri, Vasiṣṭha, Pāvaka and the Pitṛs married them. Thirteen sons beginning with Kama and ending with Yashas were begotten by Dharma of Śraddhā and others happy and conducive to happiness. Nikṛti and others were begotten of Hiṃsa by Adharma. They bore the traits of Adharma and were conducive to unhappiness. This is the creation of the sages. It is impossible to mention this in detail.

Karma & Liberation - 
Sacred rites, charitable gifts, penances and observances, these are advocated by people for the purity. Devotion is the result of grace and grace is the result of devotion. Virtue and holy rites constitute the means for the attainment of grace. Contact with grace yields excellence of Dharma. After attaining this excellence, the sins of the individual decline. When his sins decline through succession of births the devotion to Sarveshvara and Amba is generated along with knowledge & awareness. The grace of the lord varies in accordance with the purity of emotions. As a result of the abandonment of the desire for the fruits of holy rites, the auspicious Shaivite virtues are attained. When Bhava is attained the man becomes more inclined towards meditation than towards rituals. A man endowed with knowledge and meditation becomes engaged in Yoga. Through Yoga arises the great, devotion and then grace of God. By means of the grace the creature is liberated and becomes equal to Shiva.
Some soul is liberated even while in the womb; another even while being born; a third whether he be a boy or a youth or an old man. A soul born as a lower species, a soul undergoing torture in hell, a soul achieving a heavenly region may be liberated when the tenure is over. Hence, in order to win his grace, you shall avoid verbal and mental defects; meditate on Shiva.