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

The 'Drain of Wealth' theory, articulated by early Indian nationalists like Dadabhai Naoroji, critiqued British colonial economic policies. It argued that colonial rule led to a significant outflow of Indian wealth to Britain, impoverishing India.

- Key Points:

- Economic Exploitation: British policies prioritized raw material export from India, undermining local industries.

- Unfair Trade Practices: India was forced to import British goods, creating a trade imbalance.

- Administrative Costs: High salaries for British officials were paid from Indian revenues.

Examples:

- Naoroji's book, Poverty and Un-British Rule in India, highlighted these issues.

- The Home Charges: Payments for British administration and military drained Indian resources.

This theory galvanized nationalist movements, emphasizing economic independence as crucial for India's freedom.