Question

what is meant by drain wealth theory

Answer 1

Dadabhai Naoroji's work focused on the drain of wealth from India to England during colonial rule of British in India. One of the reasons that the Drain theory is attributed to Naoroji is his decision to estimate the net national profit of India, and by extension, the effect that colonisation has on the country.

Answer 2

Dadabhai Naoroji was the first man to say that internal factors were not the reasons of poverty in India but poverty was caused by the colonial rule that was draining the wealth and prosperity of India. The drain of wealth was the portion of India's wealth and economy that was not available to Indians.

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