Komal Rani answered this. Dear student export surplus refers to the situation when exports are more than the imports. It leads to drainage of Indian wealth because the sole motive of British government was to transform India into a mere supplier of cheap raw materials in order to flourish its own industrial base.
How did it lead to drain of Indian wealth?
Answer: Dadabhai Naoroji propounded the theory of ‘Drain of Wealth’ in the 19th century. The colonial period was characterized by the exploitation of Indian resources. On the other hand, income of Indians was spent on expensive imports of finished goods from Britain which made Britain richer on the expense of India.
How did the British drain the wealth of India?
So, the ‘Drain of wealth’ from India to England started after 1757 (Battle of Plassey), when the Company acquired political power and the servants of the Company a ‘privileged status’ and, therefore, acquired wealth through dastak, dastur, nazarana and private trade.
How has the export surplus proved disadvantageous to India during colonial period?
How had the export surplus proved disadvantageous to India during colonial period? Because the amount collected through surplus trade was used by Britishers in enhancing their colonies and meeting their war requirements rather than spending on India. Thus it is said that surplus trade but only to benefit Britishers.
What did the British export from India?
One of the major commodities exported from India to Britain was tea. The East India Company began commercial tea production in Assam in the 1820s. A growing industry, by 1900 there were around 4000 tea estates in north and south India, as well as over 2000 in Ceylon (now Sri Lanka).
How was the export surplus used?
However, the export surplus was used for: i. To make payments for administrative expenses incurred by the British government in Britain, ii. To meet expenses on the war fought by the British Government, iii. To import invisible items, etc.
Which industry suffered the most under British rule?
The Jute industry was most severely affected due to partition. Thus, Indian agriculture became backward, stagnant and non-vibrant under the British rule.
Who explained the theory of drain of wealth?
In 1867, Dadabhai Naoroji put forward the ‘drain of wealth’ theory in which he stated that the Britain was completely draining India. He mentioned this theory in his book Poverty and Un-British Rule in India.
What is known as drain of wealth?
The transfer of wealth from India to England for which Indian got no proportionate economic return, is called the Drain of Wealth. Till the Battle of Plassey, the European traders used to bring gold into India to buy Indian cotton and silk.
What do you mean by economic drain during British India?
The drain of Indian wealth during colonial period : The drain of Indian wealth during colonial period means using export surplus as payments for expense incurred by an office set up by the colonial government in Britain, expenses on war fought by the British Government and the import of invisible items.
Why was the export surplus important to India?
Answer: Export surplus was an instrument to perpetuate the ‘drain of wealth’ from India to Britain. The surplus amount that was earned by India through exports was siphoned off to the colonial British under various expenses such as ‘home charges’ or the military payments or remittances of British residents and officials in India to Britain.
How did export surplus during British rule lead to?
How did export surplus during british rule lead to the economic drain of Indian wealth?
What did India export during the colonial period?
Answer: Throughout the colonial period, India’s foreign trade experienced the generation of a large export surplus. However, the surplus came at huge cost to the India’s economy. There was shortage of essential commodities such as food grains, clothes, kerosene, etc. in the domestic market.
How did the British drain the Indian economy?
The British Government now went on innovating newer and newer techniques of drain for empire-building in and outside India. It now consisted of mainly “Home Charges” and “unrequited exports”. The Home charges were born sin, as remarked by Amalesh Tripathy.
