explain in four points how India's wealth was being drained to England
Answers
Remittances of savings by the employees of the East India Company as they preferred to invest at home. 3. Remittances for purchasing British goods demanded by British employees as well as purchasing British goods in India.
So, the 'Drain of wealth' from India to England started after 1757 (Battle of Plassey), when the Company acquired political power and the servants of the Company a 'privileged status' and, therefore, acquired wealth through dastak, dastur, nazarana and private trade.
So, if you wanna know more;
Meaning of the Drain:
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 main agreement that was advanced in this respect was that “a significant portion of India’s national wealth was transferred to England without any quid pro quo.” The experts described such ‘Drain’ on India’s resources as the transfer of resources from India to England either by getting nothing in return or getting only disproportionately a smaller part of such transfer of resources.
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The person who first raised this issue of drain of resources from India to England was Dadabhai Naoroji in his book “Poverty and Un-British Rule in India” published in the year 1871. Dadabhai Naoroji tried to explain in his book the causes of drain, to measure the extent of such drain and to find the consequences of such drain.
Thus the British siphoning system adopted to take away India’s resources and wealth has been termed as ‘The Economic Drain’ by economists like R.C. Dutt, Dadabhai Naoroji and others.
Causes of the Drain:
Dadabhai Naoroji in his book observed, “The drain consists of two elements the first, arising from the remittances by European Officials of their savings, and for their expenditure in England for their various wants both there and in India ; from pensions and salaries paid in England; and the second that arising from remittances by non-official Europeans.”
This indicates that in order to meet the requirements of the economic drain, India had to export much as compared to its imports.
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Dadabhai Naoroji observed that the following factors were responsible for the economic drain from India:
I. Remittances to England by European employees for supporting their families and education of their children—which may be considered a feature of colonial system of government.
2. Remittances of savings by the employees of the East India Company as they preferred to invest at home.
3. Remittances for purchasing British goods demanded by British employees as well as purchasing British goods in India.
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4. Government purchase of stores manufactured in Great Britain.
5. Interest charges on public debt held in Britain (which excluded interest payment on railway loans and other debts incurred for productive works).
As a result of political, administrative and commercial connections established between India and England, the Government of India had to make huge payments to the people of England. All these payments were known as ‘Home Charges’.
Home charges were consisting of interest on public debt raised from England, annuities on account of railways and irrigation works and payments to British employees, employed in India as well as pensions to retired employees worked in India.
Answer:
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Dadabhai Naoroji observed that the following factors were responsible for the economic drain from India:
Dadabhai Naoroji observed that the following factors were responsible for the economic drain from India:I. Remittances to England by European employees for supporting their families and education of their children—which may be considered a feature of colonial system of government.
Dadabhai Naoroji observed that the following factors were responsible for the economic drain from India:I. Remittances to England by European employees for supporting their families and education of their children—which may be considered a feature of colonial system of government.2. Remittances of savings by the employees of the East India Company as they preferred to invest at home.
Dadabhai Naoroji observed that the following factors were responsible for the economic drain from India:I. Remittances to England by European employees for supporting their families and education of their children—which may be considered a feature of colonial system of government.2. Remittances of savings by the employees of the East India Company as they preferred to invest at home.3. Remittances for purchasing British goods demanded by British employees as well as purchasing British goods in India.
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