Question

What do you understand by the term 'drain of wealth'?

Answer 1

The British government followed a one-side trade policy which exempted the British goods from paying any duty entering in India, but levied high custom duties in Indian goods entering England. people therefore, preferred to buy English goods which were cheaper and Indian merchants found it difficult to survive with handloom products made in India, while the British companies made profits and transferred this wealth of India into Britian.