Question

The highest priest of drain of wealth theory in India was:
A) Bipin Chandra Pal
B) Motilal Nehru
C)Aurobindo Ghosh
D)Dadabhai Naoroji

Answer 1

Hint:
It refers to the economic criticism of colonial rule in India championed by early nationalists.
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.

Complete answer:
Who?
One of the early propagators of the idea of the drain of capital was Dada Bhai Naoroji.
In 1867, he put forth the notion that the colonial rule will drain and bleed India's money.
He wrote (in his work 'Poverty and non-British law in India,' 1880) that it was the pitiful operation of British policy that consumed India from its content.

Origin:
In the 17th and early 18th centuries, the East India Company of England used to buy bullion-gold and silver to the tune of 20 million, and funds from England to buy goods from India.
These products were then shipped for sale to Europe.
Following the signing of the Battles of Plassey (1757) and Buxar (1764) of the Allahabad Treaty (1765), which granted the Company the right to receive land revenue from the province of Bengal, the Company started to raise surplus revenues (after paying duty and tribute to the Nawab of Bengal).
The Company used these revenues to import goods from India, which were then sold for sale in Europe and elsewhere.
Eventually, it removed the need for the Company to import bullion and funds from England to finance its activities in India.
It resulted in a condition in which Indian revenues were used to import Indian commodities, which were then exported from India, without India receiving anything in exchange.
This was the beginning of a drain on India's capital.

Hence, Option D. Dadabhai Naoroji is the correct answer.

Note:
Dadabhai Naoroji has provided six factors that have triggered external drainage.
The following are: foreign law and administration in India. Immigrants took in the funds and manpower required for industrial growth, but India did not attract immigrants. Much of Britain's civil administration and military spending was compensated by India.