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Questions and Answers
What is the main idea behind the economic drain or drain of wealth theory proposed by Dadabhai Naoroji?
What is the main idea behind the economic drain or drain of wealth theory proposed by Dadabhai Naoroji?
- Natural resources are better managed under colonial governments.
- Wealth is transferred from India to Britain without adequate compensation. (correct)
- Economic growth in India was consistent under British rule.
- Wealth is historically accumulated in colonies.
The theory of economic drain was solely supported by Dadabhai Naoroji.
The theory of economic drain was solely supported by Dadabhai Naoroji.
False (B)
What mechanism does the drain of wealth theory describe?
What mechanism does the drain of wealth theory describe?
Unilateral transfer of wealth from India to Britain.
According to Naoroji, the drain of wealth theory outlines that wealth was __________ to Britain without fair exchange.
According to Naoroji, the drain of wealth theory outlines that wealth was __________ to Britain without fair exchange.
Match the following individuals with their contributions to the drain of wealth theory:
Match the following individuals with their contributions to the drain of wealth theory:
Flashcards
Economic Drain Theory
Economic Drain Theory
The idea that British colonial rule in India drained wealth from the country, transferring it to Britain.
Poverty and Un-British Rule in India
Poverty and Un-British Rule in India
Dadabhai Naoroji's book that argued British rule in India was exploitative and caused poverty.
Unilateral Transfer of Wealth
Unilateral Transfer of Wealth
The one-way transfer of wealth from India to Britain during British rule.
Supporters of Economic Drain Theory
Supporters of Economic Drain Theory
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Mechanisms of Wealth Drain
Mechanisms of Wealth Drain
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Study Notes
Economic Drain Theory
- Dadabhai Naoroji developed the theory of economic drain, arguing that British rule in India led to a significant transfer of wealth from India to Britain.
- This theory posits that India's resources were exploited for the benefit of Britain.
- Naoroji's work, "Poverty and Un-British Rule in India", details this argument.
- It highlights a unilateral transfer; wealth flows only one way: from India to Britain.
- Other prominent figures, including R.C. Dutt, G.V. Joshi, M.G. Ranade, and Tilak, supported this theory.
Mechanism of Drain of Wealth
- Increased British military spending wasn’t directly funded by Indian revenues in all cases. Instead, the Indian resources were used to fulfill British needs, leading to a drain.
- Funds or resources were sent to Britain for British purposes.
- This included the import of British goods and the payment for services provided to India by British companies
- Exploitation of Indian resources, including the collection of taxes and usage of Indian labor for the benefit from Britain.
- The drain isn't just about taxes; it encompasses the entirety of the exploitation of Indian resources and labor for British gain.
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