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The British rule has been often been described as the reason for drain of Indian wealth to Britain. In this light discuss constituent of economic drain and consequences of the same.

Topic : The Freedom Struggle —  its various stages and important contributors/contributions from different parts of the country.

1. The British rule has been often been described as the reason for drain of Indian wealth to Britain. In this light discuss constituent of economic drain and consequences of the same. (250 words)

Reference: India’s freedom struggle by Bipin Chandra

Why the question:

The question is premised on the events of drain of wealth during the British rule in our country.

Key Demand of the question:

Explain the reasons causing drain of wealth in the British rule; explain the constituents of economic drain and its consequence in detail.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

The constant flow of wealth from India to England for which India did not get an adequate economic, commercial or material return has been described as drain of wealth from India. Dadabhai Naoroji gave ‘drain of wealth theory’ in his book ‘Poverty and Un-British Rule in India’. Scholarly, estimate drain of wealth to be around 9% of India’s GDP in 18th century and 6% of GDP in 19th century.

Body:

In the answer body explain the various constituents of drain of wealth.

Discuss specifically the economic component in particular – like it included movement of private funds to England, money paid to banks, insurance companies, shipping companies in England for the services they render in India, Company’s remittances to England (Home Charges) etc.

Explain then what the consequences were of such a drain of wealth on India and its economy.

Conclusion:

Conclude that thus, British methods of exploitation though less painful but resembled the blood-sucking leeches.