GENERAL KNOWLEDGE

Detailed explanation-1: -Dadabhai Naoroji believed that India’s wealth was drained by Home Charges and Unrequited Exports. Home charges were the interest paid to England by Indians for the money spent on developing India. The interest was paid as costs to maintain the army and pension for retired British Indian personnel.

Detailed explanation-2: -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-3: -The drain of wealth theory was propounded by Dadabhai Naoroji in 19th century. During the colonial period the British exploited the Indian resources and their prime motive to conquer India was that they could make it a source for cheap raw materials for their own industries.

Detailed explanation-4: -(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.