Drain of wealth

Subject: History

Context:

British charity organisation National Trust released a report on September 22 stating that many historical properties it manages have a colonial past and links to slavery.The report states that when the employees returned, they also flooded Britain with “associated objects, furnishing its homes, forging fashions, identities and cultural change”.

Concept:

• DadabhaiNaoroji was among the key proponents of the ‘Drain Theory’, disseminating it in his 1901 book ‘Poverty and Un-British Rule in India’.
• Naoroji argued that imperial Britain was draining away India’s wealth to itself through exploitative economic policies, including
  • India’s rule by foreigners
  • the heavy financial burden of the British civil and military apparatus in India
  • the exploitation of the country due to free trade
  • non-Indians taking away the money that they earned in India
  • the interest that India paid on its public debt held in Britain.