- mainly after Indian Councils Act 1892
- by RC Dutt (Ex ICS), Economic History of India (1981), Dada Bhai Naroji, MG Ranade
- intellectually proved that colonialism exploited india and british not fulfilling any White Man’s Burden
- economic critique
- Sir Syed Ahmed Khan did NOT believe
Arguments
- IR in britain converted india into source of raw materials and export market
- destroyed handicrafts sector, artisan
- agri sector overburdened as no IR india
- india became net exporter of raw materials from earlier finished goods
- revolution in transports and train meant for british benefit, not ours
- steam engine fitted railway, ships
- Suez Canal cut 4500 miles to Europe
- pre 19th century drain by plunder and mercantile capitalism
- profit motive by trade
- core idea = misuse of political power in india for economic benefits to colonial powers
Components of Drain
- Pre 19th Century:
- misuse of dastaks (notional loss)
- Plassey Plunder
- LR post 1765
- gold outflow instead of inflow
- From 1813+
- India source of raw materials, export market
- no import duty
- such currency exchange rates that help British businesses
- forex kept by SoS in London by selling council bills to importers of Indian goods. India did not get Forex from exports
- forex from EIC exports of indian goods (opium, tea) was taken to britain
- Home charges and charges for expenditure by Britain done on behalf of india. (British show they provide service to india)
- salaries, pension, training cost
- dividends to EIC shareholders
- interests on loan taken by EIC
- expense on SOS for india and council of india
- purchase of stores/goods
- payments to the british war office in britain
- for indians, all this is drain as Indians provided service to british
see also: Did British actually modernize India