Who proposed the drain of wealth theory?

Who proposed the drain of wealth theory?

The well known British politician Edmund Burke also developed a theory in the 1780s that was based on an understanding of drain. The renowned Indian reformer Raja Rammohun Roy was the first Indian who worked out an estimate of the amount and sources of the drain of wealth from India to England around 1830.

Who propounded the drain theory for the first time?

Theory of economic drain was propounded by Dadabhai Naoroji . revenue, more than entire land revenue collection and over 1/3rd of India’s savings. He was the first Asian to be a member of British parliament. He mentioned this theory in his book Poverty and Un-British Rule in India.

Who put forward drain theory?

Dadabhai Naoroji
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.

What is meant by drain theory?

Drain theory is the theory put forward by Dadabhai Naoroji, which is included in his book ‘Poverty and UnBritish Rule in India’. It deals about the truth that the drain of wealth to Britain was the root cause of poverty in India at the time of British rule.

What is drain theory explain?

The essence of the drain theory is that the unilateral transfers that India was compelled to make to Britain systematically stripped the country of resources and thus perpetuated poverty.

Who is called Grand Old Man of India?

Dadabhai Naoroji reached Bombay (now Mumbai) from London on the afternoon of 3 December 1893. An estimated half a million people thronged the streets to welcome him.

What is mean by drain of wealth?

The drain of wealth was interpreted as an indirect tribute extracted by imperial Britain from India year after year. According to the nationalist calculations, this chain amounted to one-half of the government revenues more than the entire land revenue collection and over one-third of India’s total savings.

What do you mean by drain of wealth?

Drain of wealth means that economic policies of the British in India were primarily motivated to snatch maximum benefits from India’s trade. India’s foreign trade generated large export surplus. This export surplus did not result in any flow of gold or silver into India. There was drain of India’s wealth into Britain.

What is drain of wealth and what were its effects?

The consequence of Drain of wealth were as follows: It impoverished all the section of Indian society particularly the peasants, who bore the brunt of the taxes raised by the Britishers. It drained India of its precious capital, which could have otherwise been invested in industrialization/ modernization of India.

Why Dada Bhai naoroji is called?

Why is he called the Grand Old Man of India? He is regarded as one of the few who gave birth to the modern Independence movement in India. Mahatma Gandhi, the father of the nation, once wrote to him saying, “The Indians look up to you as children to the father.

What led to the drain of Indian wealth?

Answer: Dadabhai Naoroji propounded the theory of ‘Drain of Wealth’ in the 19th century. The colonial period was characterized by the exploitation of Indian resources. Thus, the British rule drained out Indian wealth for the fulfillment of its own interests.

Who was the founder of the drain of wealth theory?

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.

Which is the first book on drain of wealth in India?

On the footsteps of Dadabhai Naoroji, R. C. Dutt also promoted the same theory by keeping it as a major theme of his book Economic History in India in 1901.

When did Dadabhai Naoroji come up with the drain of wealth theory?

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 .

How did the drain of wealth affect the economy?

The drain theory was not limited to the narrow concept of export of money or good, but was based on wider economic reasoning and consideration. The drain affected the country’s prospects of employment and income.