Question

Q. Which of the following ways drain of wealth occurred from Indian territories to the British?

Select the correct answer using the code given below:

• A. 1, 2 and 4 only
• B. 1, 3 and 4 only
• C. 1, 3, 4 and 5 only
• D. 1, 2, 3, 4 and 5

Answer 1

The correct option is C 1, 3, 4 and 5 only

Explanation:

Channels of Drain of Wealth

• Bribes taken by Robert Clive from the Nawabs of Bengal.
• Interest paid to English companies who invested in India. -The English government in India borrowed money from English capitalists & they paid the interest from India’s exchequer.
• The salaries of Secretary of State
• Maintenance of the army & funds for waging wars even outside India
• Other expenses related to administration.
• Profits earned by British capitalists through illegal channels.
• They used to pay less than the market value while purchasing Indian goods.
• Support the India office in London.
• Salaries & pensions of British personnel engaged in India.