Question

What does the phrase, 'drain of wealth', refer to?

• A. Throwing away the wealth on streets.
• B. Selling public property to British government.
• C. Sharing the profits with Indian farmers.
• D. Acquiring raw materials from India for British industries and selling finished goods at higher prices.

Answer 1

The correct option is D Acquiring raw materials from India for British industries and selling finished goods at higher prices.

The British exploited India as a supplier of raw materials for the industries in their home country. At the same time, they dumped manufactured goods at high prices in the colony. It was a continuous transfer of resources from India to Britain without any benefit to the former. This is termed as the 'drain of wealth'.