in your opinion, commerce what was the role of East Indian Company in the drain of wealth from India?
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The Drain of Wealth theory was originally propounded by Dadabhai Naoroji and later it was developed and analyzed by R.P. Dutt, M.G.Ranade etc. This theory was merely a depiction as to how all the riches of India were being drained by the England. The constant flow of wealth from India to England for which India did not get any type of return is what is known as Drain of wealth theory.
All the resources that were present in India were being utilized by the Britain for their development. If the same resources would have been used in India back then, then the income of the people would have increased tremendously and thereby improving the living standards.
Factors that caused external drain are as follows;
·
Outside rule and administration in India.
·
India was paying for all the civil administration and army of England.
·
The burden of territory building both inside and outside India was also in India.
·
Major earners were foreigners only who never invested in India.
Apart from these, for various other services as well, India was paying heavily to the Britishers. Also, Indian labour was greatly undervalued at that time. It doesn’t ends here; East India Company was purchasing items from India with Indian cash and trading it to Britain.
So it can be seen how Indian economy was constantly drained out by the England people for so long.
Hope it is useful.
All the resources that were present in India were being utilized by the Britain for their development. If the same resources would have been used in India back then, then the income of the people would have increased tremendously and thereby improving the living standards.
Factors that caused external drain are as follows;
·
Outside rule and administration in India.
·
India was paying for all the civil administration and army of England.
·
The burden of territory building both inside and outside India was also in India.
·
Major earners were foreigners only who never invested in India.
Apart from these, for various other services as well, India was paying heavily to the Britishers. Also, Indian labour was greatly undervalued at that time. It doesn’t ends here; East India Company was purchasing items from India with Indian cash and trading it to Britain.
So it can be seen how Indian economy was constantly drained out by the England people for so long.
Hope it is useful.
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