Question

How did export surplus during british rule lead to the economic drain of the indian wealth?

Answer 1

During entire British colonial period,the value & volume of India's gross exports of primary goods (food grains, cotton, raw silk,wool,jute,sugar,indigo ,etc.) exceeded the gross imports of finished consumer goods like cotton silk & woolen clothes and capital goods like light machinery manufactured in British factories.This led to generation of huge export surplus. But this surplus came as a huge cost to Indian economy.Several essential commodities(food,clothes,kerosine) were scarcely available in domestic market.This also did not result in any flow of gold or silver into India(unlike pre -British rule) .Rather,this was used to make payments to the cost of British colonial 

Answer 2

Answer:

Drain of wealth means that the main motive of economic policies in India was to snatch maximum benefits from India's trade. Foreign trade of India during the colonial period generated a surplus export due to the excess exports. However, this surplus export did not flow any silver or gold into India.