What was Drain of Wealth during British rule?

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-

  1. Home charges, ie cost of maintaining British officers in London for India.
  2. Remittances, ie expenditure on British officials working in India.
  3. 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.

January 11, 2017

About Us

Ekalawya, the online guru is there it help with its extensive base of most repeated questions and answers covering all areas of interest. We keep updating too, so that no major developments are lost from our current affairs scanner.
© Ekalawya | Built and hosted by Jyothis Joy

© 2013, All rights reserved.