INDIAN HISTORY

Detailed explanation-1: -The drain of wealth was the portion of India’s wealth and economy that was not available to Indians.In 1867, Dadabhai Naoroji put forward the ‘drain of wealth’ theory in which he stated that the Britian was completely draining India. He mentioned this theory in his book Poverty and Un-British Rule in India.

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: -Dadabhai Naoroji’s mentioned the concept of drain of wealth from India during British rule in his book Poverty and Un-British Rule in India. He made an estimate of drain which was around Rs 8 million.

Detailed explanation-4: -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-5: -Based on the drain theory of Dadabhai Naroji, the nationalists came to see the foreign capital in perilous terms. They came to regard foreign capital as an unmitigated evil, which did not develop a country but exploited and impoverished it.