What are the causes of drain of wealth?

Reasons for the Drain of Wealth

• All the civilian and military expenses of Britain were paid by India.
• Indian revenues paid for the territorial expansion of the British Empire, within and outside India.
• Annuities that were paid on railway and irrigation works in India which were financed by costly British capital.

What was the economic drain and its results?

Drain had resulted loss of generation of income and employment in the country. In this connection, R.C. Dutta observed, “For when taxes are raised and spent in a country, the money circulates among the people, fructifies trade, industries and agriculture, and in one shape or another reaches the mass of the people.

What is drain of wealth Class 8?

The constant one-way flow of wealth from India to England, for which India earned no returns, was described as ‘Drain of Wealth. ‘ This happens as gold and silver flow out of the country as a result of a negative trade balance.

What is drain of wealth in economics?

The drain of wealth was interpreted as an indirect tribute extracted by imperial Britain from India year after year. According to the nationalist calculations, this chain amounted to one-half of the government revenues more than the entire land revenue collection and over one-third of India’s total savings.

How did Colonisation drain India of its wealth?

The British ruled India for 190 years and during that long period of colonisation drained India of most of its wealth. Britain wreaked havoc by pursuing a policy so disastrous “that per capita foodgrains’ availability in India declined drastically from 197.3 kg per year in 1909-14 to 136.8 kg per year in 1946”.

What is drain of wealth in history?

The Drain of Wealth was referred to as typically “a phenomenon of the colonial rule.” The transfer of resources from India to England either without getting anything in return or getting only a disproportionately small part of such a transfer of resources has come to be described as the Drain of India’s resources.

What is drain of wealth Class 10?

Hint: The constant flow of national wealth from India to England for which india did not get adequate economic, commercial or material return has been described by indian national leader and economist as a drain of wealth from India.

What is drain of wealth Class 12?

Hint: The term “drain of wealth” indicates the constant flow of the wealth from India to England. But, for this flow, India did not get the adequate economic, commercial or material return. Also, the colonial government was utilizing Indian resources a lot. This was based on the Drain Wealth theory.

What is drain of wealth What was its effect on the economy of India during the colonial period?

The constant flow of national wealth from India to England for which India did not get an adequate economic, commercial or material return has been described by Indian national leaders and economists as ‘drain’ of wealth from India. This was the drain of wealth theory.

What is the drain of wealth explain its impact on the economy of colonial India?

The consequence of Drain of wealth were as follows: It impoverished all the section of Indian society particularly the peasants, who bore the brunt of the taxes raised by the Britishers. It drained India of its precious capital, which could have otherwise been invested in industrialization/ modernization of India.

How would you explain the drain of wealth during the British rule?

Answer: Dadabhai Naoroji propounded the theory of ‘Drain of Wealth’ in the 19th century. The colonial period was characterized by the exploitation of Indian resources. Thus, the British rule drained out Indian wealth for the fulfillment of its own interests.

What were the reasons behind drain of economic wealth during British rule in India?

Dadabhai Naoroji and other economic nationalists gave several factors that caused external drain….These included:

• payments towards pensions and furloughs of British officers in the civil and military departments in India,
• expenses on India Office establishment in London,
• payments to the British war office etc.

What is meant by the drain of wealth?

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.

What was the drain of wealth from India to England?

The drain of wealth was typically “a phenomenon of colonial rule.” The person to draw pointed attention to this drain of resources from India to England was Dadabhai Naoroji in his book Poverty and Un-British Rule in India (1871).

How did drain of wealth theory help in the freedom struggle?

It was thus helpful in expanding the mass base of the freedom struggle. Drain of wealth theory highlights the mercantile character of British rule in India that was inherently exploitative. It shook the myth of Britain’s benevolence and laid strong foundations for ensuing freedom struggle.

What did dad Dadabhai try to prove about the drain of wealth?

Dadabhai tried to prove that mass poverty in India was a direct consequence, among other reasons, of drain of wealth (resources) from India to England. Forms of Drain of Wealth