The economic ideas are: 1. National Income of India 2. Taxation, Military Expenditure and Public Department 3. Drain Theory 4. Criticism of British Administration. Economic Idea 1.
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Answered Jan 15, The Drain of Wealth theory was systemically initiated by Dadabhai Naoroji in and further analysed and developed by R. Dutt, M. G Ranade etc. The "drain of wealth" depicts the constant flow of wealth from India to England for which India did not get an adequate economic, commercial or material return. The colonial government was utilizing Indian resources- revenues, agriculture, and industry not for developing India but for its utilization in Britain.
If these resources been utilised within India then they could have been invested and the income of the people would have increased. According to Dadabhai Naoroji, the following forms of drain can be identified: Home charges refer to the interest on public debt raised in England at comparatively higher rates; expenditure incurred in England by the Secretary of State on behalf of India; Annuities on account of railway and irrigation works; Indian office expences including pensions to retired officials who had worked in India or England, pensions to army and navals etc.
Remittances to England by Europeans to their families. Interest charges on public debt held in Britain. Rather, for majority of farmers it created the problem of famines by destroying the self sufficiency on the part of villages. Problem of food shortage was felt. This introduced an element of instability in agriculture. There was a huge growth in agricultural debt due to presence of MAhalwari, Ryotwari, Permanent Settlement Systems for Land revenue collection.
This effect was reflected in pattern of industrial employment and concentration of industries in few cities and towns, and was caused mainly by colonial character of our country. The composition of industrial output showed the dominance of consumer goods over producers and capital goods. Decline of village handicrafts and slow growth of modern industries affected the agriculture sector of economy.
It also created an institutional environment that, on paper, guaranteed property rights among the colonizers, encouraged free trade, and created a single currency with fixed exchange rates, standardized weights and measures, capital markets, a well-developed system of railways and telegraphs, a civil service that aimed to be free from political interference, and a common-law, adversarial legal system.
TRADE: In the trade sector India was turned into a market for British manufactured goods and supplier of raw materials to Britain, due to unequal tariff policy, biased stores policy, etc.
Drain Theory: What do you mean by Drain Theory? Marginal contributions to the theory were also made by R. Dutt, G. Iyer, G. Gokhale and P.
Dadabhai Naoroji : Childhood | Career | Drain Theory | Death
He was a great Indian nationalist leader. He was considered to be one of the major personalities who laid foundation for Indian freedom struggle. When the Dadabhai was just four years only, then his father Naoroji Palanji Dordi was died and all the responsibilities fell on his mother Maneckbai. His Education Dadabhai Naoroji was a bright student during his student life and had good grasp over English and Mathematics. Dadabhai was educated at Elphinstone Institute School. Also, he became the professor of Natural Philosophy and Mathematics at the same institution at the age of