Drain Theory

 

  • 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 wealth, the British established industrial concerns in India owned by British nationals
    • It acted as a drag on economic development

 

Final Destination for Nagaland PSC Notes and Tests, Exclusive coverage of NPSC Prelims and Mains Syllabus, Dedicated Staff and guidence for NPSC NPSC  Notes brings Prelims and Mains programs for NPSC  Prelims and NPSC  Mains Exam preparation. Various Programs initiated by NPSC  Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––