Question:
Which one of the following statements correctly defines the term 'Drain Theory' as propounded by Dadabhai Naoroji?
AThat the resources of the country were being utilized in the interest of Britain.
BThat a part of Indians national wealth or total annual product was being exported to Britain for which India got no material returns.
CThat the British industrialists were being given an opportunity to invest in India under the protection of the imperial power.
DThat the British goods was being imported to the country making it miserable day by day.
Answer:
B. That a part of Indians national wealth or total annual product was being exported to Britain for which India got no material returns.
Explanation:
Dadabhai Naoroji known as Grand Old Man of India , focused on the drain of wealth from India to England through colonial rule. One of the reasons that the 'Drain Theory' is attributed to Naoroji was his decision to estimate the national net profit of India.