Economic Drain Theory in India

What is the main idea behind the economic drain or drain of wealth theory proposed by Dadabhai Naoroji?

The theory of economic drain was solely supported by Dadabhai Naoroji.

What mechanism does the drain of wealth theory describe?

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:

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.

Explore the Economic Drain Theory developed by Dadabhai Naoroji, which argues that British colonial rule in India resulted in a significant transfer of wealth from India to Britain. This quiz delves into the mechanisms behind this wealth drain and the support it received from other notable figures. Understand the implications of this theory as discussed in Naoroji's seminal work.