INDIAN HISTORY

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: -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: -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.