the drain of wealth theory

1. DADABHAI NAOROJI &
THE DRAIN OF WEALTH THEORY
(1825-1917)
BY: AKANKSHA
ROLL NO: 04

2. • DADABHAI NAOROJI , ALSO KNOWN AS THE ‘GRAND
OLD MAN OF INDIA’ AND ‘THE FATHER OF INDIAN
NATIONALISM’ , WAS BORN ON 4TH SEPTEMBER IN
1825 TO A PARSI HOUSEHOLD IN BOMBAY.
•HE WAS A PARSI INTELLECTUAL, EDUCATOR AND AN
EARLY INDIAN POLITICAL AND SOCIAL LEADER. HE
STUDIED AT THE ELPHINSTONE COLLEGE IN BOMBAY
AND LATER BECAME A PROFESSOR OF NATURAL
PHILOSOPHY AND MATHMATICS AT THE SAME
COLLEGE.
•HE SERVED INDIA FOR 61 LONG YEARS, 40 YEARS
BEFORE THE FOUNDATION OF THE INDIAN NATIONAL
CONGRESS AND 21 YEARS AFTER THAT. HE WAS
ELECTED AS THE PRESIDENT OF CONGRESS THRICE, IN
1886, 1893 AND 1906. HE CONTENDED THAT
“CONGRESS REPRESENTS THE ARISTOCRACY OF
INTELLECT”.

3. •IT WAS UNDER HIS PRESIDENTSHIP IN 1906 THAT THE
FOUR RESOLUTIONS ON SELF-GOVERNMENT, BOYCOTT
MOVEMENT, SWADESHI MOVEMENT AND NATIONAL
EDUCATION WAS PASSED BY THECONGRESS.
•DADABHAI NAOROJI THEN MOVED TO LONDON WHERE
HE BECAME A PARTNER IN CAMA & CO. ESTABLISHED IN
LIVERPOOL, OPENING A LOCATION FOR THE FIRST
INDIAN COMPANY TO BE ESTABLISHED IN BRITAIN.
•DADABHAI NAOROJI FOUNDED THE LONDON INDIAN
SOCIETY IN THE YEAR 1865. HE BECAME AN ELECTED
MEMBER OF THE HOUSE OF COMMONS AND THE
FIRST ASIAN TO BECOME A BRITISH MEMBER OF
PARLIAMENT.

4. THE DRAIN OF WEALTH THEORY
BY DADABHAI NAOROJI
•DADABHAI NAOROJI WAS THE FIRST INDIAN POLITICIAN
TO DRAW THE ATTENTION OF THE PEOPLE TO THE DRAIN
OF INDIAS WEALTH TO THE GREAT BRITAIN AS A RESULT
OF BRITISH RULE IN INDIA.
•HE GAVE HIS VIEWS IN THE FAMOUS BOOK ENTITLED
POVERTY AND UN-BRITISH RULE IN INDIA .ONE OF
THE REASONS THE THEORY OF DRAIN OF WEALTH IS
ATTRIBUTED TO NAOROJI IS HIS DECISION TO
ESTIMATE THE NET NATIONAL PROFIT OF INDIA, AND
BY EXTENTION THE EFFECT THAT THE COLONISATION
HAS ON THE COUNTRY.

6. •AFTER A CLOSE STUDY OF DYNAMICS OF EXCHANGE , DADABHAI
NAOROJI CAME ACROSS VARIOUS REASONS WHICH ACCORDING TO HIM
PLUNDERED THE WEALTH OF INDIA.
•THE FIRST FACTOR THAT ENABLED SUCH EXPLOITATION WAS DUE TO THE
NATURE OF ADMINISTARTION IN INDIA WHERE THE COUNTRY WAS
GOVERENED NOT BY ITS OWN ELCECTED PEOPLE BUT RATHER,BY A
FOREIGN GOVERNMENT.
•THE SECOND FACTOR POINTED OUT THE LACK OF INFLUX OF
IMMIGRANTS IN INDIA WHICH DIRECTLY LED TO THE CHOCKING OF THE
INFLOW OF LABOUR AND CAPITAL.
• THIRDLY, THE MAJOR EXPENSES OF THE BRITISH ARMY ALONG WITH
THE ADMINISTRATION PERSONNEL FROM VARIOUS CIVIL BODIES WERE
SUSTAINED BY INDIA.
• THE FOURTH REASON WAS THAT ALL THE EXPENSES THAT AROSE ON
THE BUILDING OF INFRASTRUCTURE OF ENGLAND TOO BORNE BY INDIA.
REASONS FOR THE DRAIN OF WEALTH OF INDIA

7. • THE FIFTH POINT DEPICTED HOW INDIA IN THE NAME OF FREE
TRADE WAS BEING PLUNDERED OF ITS RESOURCES AND THE
JOBS WITH HANDSOME PACKAGES WERE OFFERED TO THE
FOREIGN NATIONALS.
• SIXTH REASON HE SPOKE OF HOW THERE WAS A DRAIN IN
CAPITALAS MOST INCOME EARNERS WERE FORIGN NATIONAL
AND BY THE VIRTUE OF THEM RETURNING TO THEIR OWN
LANDS CAUSED IN TREMENDOUS LOSS IN CAPITAL.
•HE BELIEVED THAT TO SOLVE THE PROBLEM OF DRAIN IT WAS
IMPORTANT TO ALLOW INDIA TO DEVELOP INDUSTRIES .
DADABHAI NAOROJI BREATHED HIS LAST ON THE 30TH OF JUNE
1917. HIS CONTRIBUTIONS TOWARDS HIS COUNTRY AND
COUNTRYMEN ALIKE WAS IMMENSE.

8. THANK YOU!