According to Dadabhai Naoroji’s Drain of Wealth theory, what major economic issue needed to be addressed to end India’s exploitation under British rule?
Correct Answer :
Unequal economic exchange between India and Britain
Solution :
The correct option is Unequal economic exchange between India and Britain.
Dadabhai Naoroji, known as the "Grand Old Man of India," propounded the famous "Drain of Wealth" theory in his book "Poverty and Un-British Rule in India."
According to this theory, a large part of India's national wealth, resources, and revenue was being systematically transferred to Britain without India receiving any adequate economic, financial, or material returns in exchange. This unilateral and unequal economic transfer—often termed the "drain"—was identified as the primary cause of widespread poverty and economic exploitation in India under British colonial rule.
Therefore, addressing this unequal economic exchange and stopping the uncompensated transfer of resources to Britain was essential to end India's economic exploitation.
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