Question

Short note on drain of wealth

Answer 1

health insurance company

Answer 2

Drain of Wealth

Till 1757 Battle of Plassey , the British had been bringing gold to exchange for cotton.

However , after the Battle , they stopped doing that and began to extract the resources of India.

The British formed the Government and took over valuable wealth and resources.

They collected surplus revenues and profits for trade and hence the wealth of India was drained out.

This transfer of wealth from India to Britain for which India got no return or profit is called the Drain of Wealth.

The Drain of Wealth included the following :

• revenues collected.

• profits of business .

• profits on trade.

• purchase of military .

• taxation

The Drain of Wealth was the most important cause for the First War of Independence .