Examine the Drain of Wealth theory propounded by the early nationalists?

The Drain of Wealth theory, articulated by early Indian nationalists like Dadabhai Naoroji, posited that British colonial rule led to a significant economic drain from India to Britain. This theory highlighted several mechanisms through which wealth was extracted:

- Unrequited Exports: India exported raw materials and goods without equivalent returns, enriching Britain at India's expense.

- Home Charges: Salaries, pensions, and expenses of British officials in India were paid from Indian revenues, further depleting resources.

- Trade Imbalance: The colonial policy favored British goods, undermining Indian industries and exacerbating economic dependency.

Naoroji, in his seminal work "Poverty and Un-British Rule in India," estimated that approximately £30 million was drained annually. This economic exploitation stunted India's development, leading to widespread poverty and underdevelopment.

The theory galvanized nationalist movements, emphasizing the need for economic self-sufficiency and political independence. It underscored the exploitative nature of colonialism, fostering a collective consciousness among Indians to challenge British rule and advocate for economic reforms.