| Consider the following statements: |
| The drain of wealth from India to England under the 'Home Charges' up till 1858 consisted of |
| 1. Payment of dividend to the proprietors of East lndia Company for payment to its shareholders |
| 2. Interest on public debt |
| 3. Guaranteed interest on capital borrowed for construction of railways and irrigational works |
| 4. Expenses of India Office Which of the above statements are correct? |
A) 1, 2 and 3
B) 2, 3 and 4
C) 1, 3 and 4
D) 1, 2, 3 and 4
Correct Answer: A
Solution :
[a] Dadabhai Naoroji was the first man to say that internal factors were not the reasons of poverty in India but poverty was caused by the colonial rule that was draining the wealth and prosperity of India. The drain of wealth was the portion of India's wealth and economy that was not available to Indians. The Drain of Wealth theory was systemically initiated by Dadabhai Naoroji in 1867 and further analysed and developed by R.P. Dutt, M.G Ranade etc. In 1867, Dadabhai Naoroji put forward the 'drain of wealth' theory in which he stated that the Britain was completely draining India. He mentioned this theory in his book Poverty and Un-British Rule in India. He put forward the idea that Britain was draining and bleeding India and that, too, for nothing.
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