Question

What is meant by Drain of wealth? How was India's wealth drained to England?

Answer 1

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.

Complete 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. Till the Battle of Plassey, the European traders used to bring gold into India to buy Indian cotton and silk. However, after the conquest of Bengal, the British stopped getting gold into India. They began to purchase raw material for their industries in England from the surplus revenues of Bengal. Thus, began the process of plundering India's raw materials, resources and wealth to England.
The primary motive of Britain to conquer India was to own a perennial source of cheap raw materials to feed its own industrial base in Britain. On the other hand, income of Indians was spent on expensive imports of finished goods from Britain which made Britain richer on the expense of India. Further, British Government used India's manpower to spread its colonial base outside India. Indians served in the British army at lower salaries than their British counterparts. Also, the expanses of war and administrative expenses that were incurred by the British Government to manage the colonial rule in India were drawn from the revenue collected from Indiana and the export surplus generated through foreign trade of India. Thus, the British rule drained out Indian wealth for the fulfillment of its own interests.

Note: Drain of wealth theory drained India of its precious capital which could have otherwise been invested in industrialization and modernization of agriculture in India. Itis the main cause of India's poverty.