Drain of Wealth during the British rule refers to large portion of national product of India which was not available for consumption to its people. But was drained away to Britain. The Indians were not getting adequate economic or material returns for it. It was purforward by Dadabhai Naoroji. Its constituents were-
- Home charges, ie cost of maintaining British officers in London for India.
- Remittances, ie expenditure on British officials working in India.
- Foreign trade, ie payment of interest to British capital invested in India and tax holidays for the foreign traders.
It resulted in poverty and underdevelopment of India. Famines were frequent due to poverty and shortage of food. It affected employment and productivity of India. Due to lack of capital, industries were absent. The per capita income become very low.