Question

What do you understand by the 'drain of Indian wealth' during colonial period?

Answer 1

Drain of wealth means that economic policies of the British in India were primarily motivated to snatch maximum benefits from India’s trade. India’s foreign trade generated large export surplus. This export surplus did not result in any flow of gold or silver into India. There was drain of India’s wealth into Britain. It is clear from the following facts :

The surplus was used to make payments for the expenses incurred by the office set up by the colonial government in Britain.

The surplus was used to pay expenses on war fought by the British government.

Surplus was used to pay for the import of invisible items.

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Answer 2

Answer:

• Dadabhai Naroji advocated the theory of ‘Drain of Wealth’ in the 19th century.
• The colonial period was marked by the exploitation of Indian resources.
• The sole motive of Britain to conquer India was to own a perennial source of cheap raw materials to feed its own industrial base in Britain.
• Further, British government used India’s manpower to spread its colonial base outside India.
• Also, the administrative expenses that were incurred by the British government to manage the colonial rule in India were borne by Indian Exchequer.
• Thus, the British rule drained out Indian wealth for the fulfillment of its own interests.