Drain of wealth theory
Answers
Answer:
The drain of wealth was the portion of India's wealth and economy that was not available to Indians. In 1867, Dadabhai Naoroji put forward the 'drain of wealth' theory in which he stated that the Britain was completely draining India. He mentioned this theory in his book Poverty and Un-British Rule in India.
Explanation:
Answer:
The transfer of wealth from India to England for which India got no proportionate economic return is called the drain of wealth .
Till the Battle of Plassey the European traders used to bring gold into India to buy Indian cloth and Silk .However after the conquest of Bengal the British stopped getting gold into India. They began to purchase raw material for the industries in England from the surplus revenues of Bengal and profits from duty free inland trade .Thus began the process of plundering India's raw material resources and wealth by Britain .
The drain included the salaries incomes and savings of Englishman ,the British expenditure in India on the purchase of military goods ,office establishments interest on debts and unnecessary expenditure on Army etc.
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