BANKING AFFAIRS

Detailed explanation-1: -The ‘Drain Theory’ was propounded by Dadabhai Naoroji, who said that the British were exploiting Indian resources in two ways: home charges and unrequited export. Home charges referred to the interest paid to England by Indians for ‘developing’ India.

Detailed explanation-2: -(I) The ‘Drain Theory’ was put forth by Gopalkrishna Gokhale. (II) The theory stated that the British exploited India for resources, and India received minimum or no returns. (III) It also claimed that Britishers who worked in India sent most of their savings to England.

Detailed explanation-3: -Naoroji’s work focused on the drain of wealth from India to Britain during the period rule of British rule in India. One of the reasons that the Drain theory is attributed to Naoroji is his decision to estimate the net national profit of India, and by extension, the effect that colonial rule had on the country.

Detailed explanation-4: -Dadabhai Naroji advocated the theory of ‘Drain of Wealth’ in the 19th century. The colonial period was marked by the exploitation of Indian resources.