- 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
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- APSC Mains 2020 Tests and Notes Program
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