The Drain of Wealth theory was first systematically articulated by Indian nationalists like Dadabhai Naoroji, R.C. Dutt, and M.G. Ranade during the British colonial period. They argued that Britain was continuously extracting wealth and resources from India through various means like salaries, pensions, trade surpluses, and interest payments on loans, for which India received no commensurate economic return. This drained India's capital and hindered its economic development, while supposedly contributing to Britain's industrialization and prosperity.
In the Indian context, 'Drain of Wealth' means foreign power in India squeezed Indian economy through various means and transferred it to their native country. This 'surplus' capital caused 'industrial revolution' in their country. Which of the following foreign ruling powers is associated with the above theory of 'Drain of Wealth' ?
Asked in APSC CCE Prelims Exam 2018 · Topic: Economic Impact of British Rule on India (Drain of Wealth Theory and its Mechanisms)
More Modern History of India questions
- Who wrote the book, Poverty and un-British Rule in India?
- Match the items in List-I with List-II and select the correct answer from the codes given below : List-I (a) Drain of wealth theory (b) Swaraj as my birth right (c) Separate Communal electorate (d) Entry into legislation List-II (1) C.R. Das (2) Moh. Ali Jinnah (3) B.G. Tilak (4) Dadabhai Naoroji (5) Subhash Chandra Bose Codes : (a) (b) (c) (d)
- Match List-I with List-II and choose the correct answer from the code given below: List-I List-II (a) Theory of Drain of (1) C.R. Das Wealth (b) Swaraj is my birth‐ (2) M.A. Jinnah right (c) Separate Communal (3) B.G. Tilak Electorates (d) Entry into Legislature (4) Dadabhai Naoroji (5) Subhas Chandra Bose Code:
- Who wrote it, “If the producers are crippled, the farmers are burdened with taxes and a huge amount of the revenue is sent out of the country, then any country in the world will become permanently poor and will have to face famine again and again.”
- In which book did Dadabhai Naoroji present his 'drain of wealth' theory ?
- In which of the following forms was India's capital and wealth transferred to Britain ? a. Salaries and pensions of the British civil and military officials working in India. b. Profits of the British capitalists in India. c. Expenses of the Indian government in Britain. d. Interests on loans by the Indian government.
- "Mercantilist, Free Trade Mercantile Capitalism and Finance Imperialism are three successive phases of British Colonialism." This theory was first formulated by whom ?
- What is the title of the Doctoral Thesis of Dr. B.R. Ambedkar in 1923?