Which one of the following is incorrect about 'Drain of Wealth'?

Question

Accepted Answer

The correct option is 3:

The "Drain of Wealth" theory was primarily conceptualized and popularized by Dadabhai Naoroji, often referred to as the 'Grand Old Man of India.' He systematically presented this theory through his writings, most notably in his book *Poverty and Un-British Rule in India*, and through speeches and papers presented to economic societies. However, it is factually incorrect to say he presented the theory directly in the British Parliament. While he was elected as a member of the British Parliament (House of Commons) in 1892, his key works detailing the drain theory were published before and during his political career, but the theory itself was a comprehensive critique developed primarily outside the parliamentary floor, though he certainly used the platform to voice these concerns. The core presentation was through detailed economic calculations and scholarly works aimed at the broader public and the ruling British administration.

The incorrect option is 1: This statement is correct. The Drain of Wealth fundamentally describes the unilateral, unrequited transfer of economic capital and resources from India to Britain without India receiving any commensurate material or commercial return.

The incorrect option is 2: This statement is correct. A significant component of the drain included the "Home Charges," which consisted of the salaries, pensions, and remittances of British civil and military officials serving in India, paid out of Indian revenues and sent back to England.

The incorrect option is 4: This statement is correct. The primary function and impact of the Drain of Wealth theory was to expose and systematically quantify the economic exploitation inherent in British colonial rule, demonstrating how Indian poverty was a direct result of British policy.