Discuss various aspects of the drain of wealth.

The Drain of Wealth theory, developed by Indian nationalists like Dadabhai Naoroji, explained the transfer of wealth from India to Britain under British rule.

1. Economic Transfer: Wealth was sent to Britain through remittances, profits from trade, and revenues collected from India. The British purchased Indian goods and exported them, sending the money back to Britain.
2. The drain started after the Battle of Plassey (1757) and became more significant after the British acquired Diwani of Bengal (1765), allowing them to control revenue and export goods.
3. By the late 18th century, nearly 9% of India’s national income was drained.
4. Impact: The drain contributed to Britain’s industrialisation, while India suffered from economic stagnation. Traditional industries were destroyed, and the country remained impoverished.
5. No Return for India: India exported raw materials and bought back finished goods at higher prices, with no economic benefit for the country.