state any two important observations made by Dadabhai naoroji about economic conditions of India
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Answer:
Economic observation of Dadabhai naoroji.
# 1. National Income of India:
Naoroji was not satisfied with the official estimates regarding the national income of India during the British rule. “The Indian Economist” was the only journal which gave such knowledge in those days. Naoroji regarded this information regarding the country’s prosperity as insufficient and misleading.
He pointed out that unless complete information about:
(a) The average annual income per head and
(b) “The requirements of labourer to live in working health and not as a starved beast of burden” was supplied every year, it was useless to make unsounded statement that India was progressing.
Economic Idea # 2. Taxation, Military Expenditure and Public Department:
A glaring example of exploitation of Indian resources and discrimination of the Indians is the taxation policy adopted by the British Government. While in England, taxes constituted 8 per cent of the income, in India it was about 15 per cent. He criticised the then Indian Government for abolishing the duties on cotton imports from Manchester as it was harmful to the newly established Indian factories.
According to Naoroji, the main cause of India’s poverty was the excessive expenditure on European services and interest paid on public debts. In 1870 itself Gladstone admitted that India was “too much burdened.” In 1893 he said that the military expenditure of India was alarming.