Question

Which of the following statements is/are true?

(I) The 'Drain Theory' was put forth by Gopalkrishna Gokhale.
(II) The theory stated that the British exploited India for resources, and India received minimum or no returns.
(III) It also claimed that Britishers who worked in India sent most of their savings to England.
(IV) The interest paid by the British on the loans taken to develop the railways was the main basis of Indian income.

• A. (I), (II), and (III) are true.
• B. Only (I) and (II) are true.
• C. Only (II) and (III) are true.
• D. (II), (III), and (IV) are true.
• E. All are true.

Answer 1

The correct option is C Only (II) and (III) are true.

The 'Drain Theory' was propounded by Dadabhai Naoroji, who said that the British were exploiting Indian resources in two ways: home charges and unrequited export. Home charges referred to the interest paid to England by Indians for 'developing' India. The British who were working in India sent their savings to England. Unrequited exports shook the Indian economy, because a significant amount of money was taken from India by the British, while India received minimum returns. In these two ways, wealth was essentially being drained from the subcontinent, according to Naoroji.