What is drain of wealth?
Answers
Answer:
The drain of wealth was the portion of India's wealth and economy that was not available to Indians for consumption. Dadabhai Naoroji gave six factors that caused external drain. These are: External rule and administration in India.
Answer:
The drain of wealth was the portion of India’s wealth and economy that was not available to Indians for consumption.
Dadabhai Naoroji gave six factors that caused external drain. These are:
External rule and administration in India.
Funds and labour needed for economic development was brought in by immigrants but India did not draw immigrants.
All the civil administration and army expenses of Britain were paid by India.
India was bearing the burden of territory building both inside and outside India.
India was further exploited by opening the country to free trade.
Major earners in India during British rule were foreigners. The money they earned was never invested in India to buy anything. Moreover they left India with that money.