Question

Q. Wealth was drained from India to Britain in which of the following ways during the colonial period?

Select the correct answer using the codes given below:

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is D 1, 2 and 3

Explanation:

Statement 1 is correct: One of the channels through which the drain of wealth took place is bribes taken by Robert Clive from the Nawabs of Bengal.

Statement 2 is correct: Home charges were the interest paid on colonial India’s sterling debt and the salaries and pensions of officers remitted to Britain. It also included the salaries of the Secretary of State.

Statement 3 is correct: Home charges also included maintenance of the army and funds for waging wars even outside India.