Critically examine the drian theory and its impact on Indian economy
Answers
Answer:
Explanation:
During the last quarter of the 19th century, a great controversy arose over the question of ‘The Drain’ between the nationalist leaders of India and the Protagonists of Britain. Indian nationalist thinkers developed the theory of Drain mainly for analysing main cause of poverty in India.
The ‘Drain Theory’ was first developed by Dadabhai Naoroji in a series of speeches and writings subsequently published in 1901 in a volume entitled Poverty and un-British Rule in India. Marginal contributions to the theory were also made by R.C. Dutt, G. S. Iyer, G.K. Gokhale and P.C. Ray.
During the late 19th and early 20th century, ‘the drain theory’ came to be seen as the symbol of Indian economic nationalism. Its message was that financial mechanisms by which British rule in India was maintained led to a transfer of wealth and income from India to Britain, imposing a ‘bleeding drain’ on the Indian economy.