Go Back To Class 11th Economics Page
Question 9.
What do you understand by the drain of Indian wealth during the colonial period?
The drain of Indian wealth refers to the continuous and unrequited transfer of India’s income and resources to Britain during the colonial period, without any equivalent return or benefit to India.
In simple words, it means that India’s wealth was taken away to England through various economic and administrative channels, making India poorer and Britain richer.
This drain took place mainly through the following ways:
First, a large part of Indian revenue was used to pay salaries and pensions of British officials, which were earned in India but spent in Britain.
Second, India had to bear the cost of administrative expenses, military costs, and wars fought by the British outside India, even though these did not serve Indian interests.
Third, profits of British companies, plantations, traders, and investors operating in India were sent back to Britain instead of being reinvested in India.
Fourth, interest payments on public debt raised in Britain but spent in India also led to a drain of wealth.
Finally, India exported goods to Britain but did not receive equivalent imports or payments in return, creating an export surplus that benefited Britain.
Conclusion
Thus, the drain of wealth was a major negative consequence of colonial rule. It reduced India’s ability to invest in development, contributed to poverty, and became a central theme of early Indian nationalist criticism of British economic policies.