Question

Who proposed the 'Drain Wealth' theory?
A. Chanakya
B. P.C. Mahalanobis
C. Dadabhai Naoroji
D. Adam Smith

Answer 1

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.

Complete answer:
In 1867, Dadabhai Naoroji initiated the theory for “drain wealth'. In this theory, he stated that Britain was completely draining India continuously. He mentioned this popular theory of that time in his famous book “Poverty and Un-British Rule in India”. He gave the strong idea that Britain was draining and bleeding India and that, too, for no return.

Hence, the correct answer is option C.

Additional Information:

Dadabhai Naoroji had written in his famous book for attributing India's abysmal poverty to the sustained drain of its wealth to England. Also, even decades before the INC (Indian National Congress) placed this theory on its agenda for change. At the same time, a small band of Maharashtrian intellectuals wrote many hard-hitting articles in English during the decade of the 1840s. These articles were harshly critical for the British Government policies, responsible for India's impoverishment. Of course, their tirade was equally strong against the age-old Indian traditions and many social evils.

Note:
 Economic drain is actually the continuous flow of wealth from one country to another without giving any proper returns. It may be in the form of material or as money, to the nation which is being drained. Therefore drain is the single flow direction with the drained nation getting no returns.