Question

The constituents of Home Charges, which was one of the methods of Economic Drain are:

1. Dividend to the shareholders of the East India Company.

2. Interest on Public Debt raised abroad.

3. Pensions and furloughs payments of British officers in the Civil and Military departments in India.

4. Interest on Foreign Capital Investments.

• A. Only 1,2 and 3
• B. Only 2 and 3
• C. Only 3
• D. All of the above

Answer 1

The correct option is D

All of the above

Home Charges refer to the expenditure incurred in England by the Secretary of State on behalf of India. The main constituents were:

Dividend to the shareholders of the East India Company. Interest on Public Debt raised abroad. Expenses on India Office establishment in London. Pensions and furloughs payments of British officers in the Civil and Military departments in India. Payments to the British war office. Store purchases in England Interest on Foreign Capital Investments was another important leakage from the national income stream.