- Dadabhai Naoroji: ‘Poverty in India’ (1876)
- He claimed that the drain of wealth and capital from the country which started after 1757 was responsible for absence of development in India.
- Drain was done through trade, industry and finance
- Two elements of the drain
- That arising from the remittances by European officials of their savings, and fro their expenditure in England
- Arising from remittance by non-official Europeans
- India has to export much more than she imported to meet the requirements of the economic drain
- In 1880 it amounted to 4.14% of India’s national income
- Consequences of the Drain
- Prevented the process of capital formation in India
- Through the drained 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/>
Subscribe on YouTube
wealth, the British established industrial concerns in India owned by British nationals
It acted as a drag on economic development