Poverty and Un-British Rule in India (1901) is the book published by Dadabhai Naoroji which explained “Drain Theory”. The work even provides significant information on the poverty estimation in India based on the observations Dadabhai Naoroji made in jail among the inmates based on their consumption patterns. Dadabhai Naoroji, the 'Grand Old Man of India,' was born in Mumbai on September 4, 1825. This article briefly takes you through his life, his publications, and his theories which the UPSC aspirants will find very useful.

Dadabhai Naoroji

• Dadabhai Naoroji was born in Bombay, British India, to a Gujarati-speaking Parsi family.
• He joined Mumbai's Elphinstone College as a Professor of Mathematics and Natural Philosophy in 1855. Naoroji went on to become a Gujarati professor at University College London.
• Naoroji wrote a number of publications and papers, the most notable of which was 'Poverty and Un-British Rule in India,' in which he discussed the British-created wealth drain from India.
• In 1896, a Royal Commission on Indian Expenditure was established as a result of his work on the Drain theory. Naoroji was a member of the commission that looked at India's financial burdens.
• He was also a partner in Cama & Co., the first Indian corporation in the United Kingdom. He was a successful businessman with his own cotton trading enterprise.
• He was one of the founding members of the Indian National Congress, which he co-founded with Dinshaw Wacha and A.O Hume in 1885.
• Naoroji was a founding member of the London Indian Society and the East India Association in 1865 and 1866. The two organizations aimed to unite nationalist Indians and sympathizers in the United Kingdom.
• In 1886,1893, and 1906, he served as President of the United States Congress.

Drain Theory

Imperial Britain was draining India's wealth to itself through exploitative economic policies, such as a foreign rule in India, the heavy financial burden of the British civil and military apparatus in India, exploitation of the country as a result of free trade, non-Indians taking money earned in India, and interest paid on India's public debt held in Britain. This is known as the drain theory.

Key Features - Drain Theory

• An economic drain, according to the mercantilist hypothesis, happens when gold and silver depart the country as a result of a negative trade balance.
• The exploitation of Indian resources characterized the colonial period. The East India Company imported $20 million in bullion into India in the 50 years before the Battle of Plassey to balance its exports against Indian purchases. The dynamic was reversed after the Battle of Plassey, and the flow of riches was directed outward as England progressively established monopolistic dominance over the Indian economy.
• So, following the Battle of Plassey in 1757, when the Company obtained political authority and the Company's servants gained a 'privileged status,' the 'drain of wealth from India to England began.
• The fundamental incentive for Britain's conquest of India was to secure a steady supply of low-cost raw resources to support its own industrial base in the United Kingdom. The money of Indians was spent on expensive finished items imported from Britain, enriching Britain at the expense of India.
• In addition, the British administration used Indian labor to expand its colonial base beyond India. To serve in the British army, Indians were paid less than their British colleagues.
• As a result, British authorities plundered Indian resources to further their own goals.

Poverty and Un-British Rule in India

• In his book Poverty and Un-British Rule in India (published in the year 1901), one of the pioneers of the Indian independence movement, Dadabhai Naoroji explained how steadily and clinically, while the British were emptying India's wealth, poverty was visible throughout the country.
• He wrote: “The British rule caused only impoverishment in India with their knife of sugar. That is to say, there is no oppression, it is all smooth and sweet, but it is a knife notwithstanding.”
• Three types of drains were highlighted by Naoroji.
  • The remittance to England of a percentage of salaries, incomes, and savings by civil and military employees of British ancestry, as well as professionals such as attorneys and doctors, was the first and most important item.
    • These, together with the payment of pensions and allowances to British officials by the Indian government in sterling, put a strain on India's resources.
  • The military budget was the second item on the agenda. The remittance of a percentage of salaries, incomes, and savings by British military personnel, as well as the payment of pensions and other allowances to army officers in sterling by the Indian government, represented a drain, much as it did for civil officials.
  • The third category was interest on loans for the building and maintenance of public works like railways, irrigation works, and so on, which were sent in sterling.

Conclusion

The drain theory was used as a rallying point for anti-British protests and nationalist mobilization. Dadabhai Naoroji was the first to state that poverty in India was caused by colonial control, which was draining the country's wealth and prosperity.

FAQs

Q1: What is the book 'Poverty and Un-British Rule in India' about?

Q2: Who wrote 'Poverty and Un-British Rule in India'?

Q3: What concept did Dadabhai Naoroji introduce in 'Poverty and Un-British Rule in India'?

Q4: What was the main cause of poverty in India according to Dadabhai Naoroji?

Q5: What impact did 'Poverty and Un-British Rule in India' have on Indian nationalism?

MCQs

1. Who authored the book 'Poverty and Un-British Rule in India'?

a) R.C. Dutt

b) Dadabhai Naoroji

c) Bal Gangadhar Tilak

d) Gopal Krishna Gokhale

2. What concept did Dadabhai Naoroji introduce in his book?

a) Swadeshi Movement

b) Drain of Wealth

c) Non-Cooperation

d) Permanent Settlement

3. According to Naoroji, what was the primary cause of poverty in India under British rule?

a) Overpopulation

b) Lack of education

c) Drain of Wealth to Britain

d) Industrialization

4. In which year was 'Poverty and Un-British Rule in India' published?

a) 1899

b) 1901

c) 1915

d) 1921

5. What was the impact of the 'Drain of Wealth' theory on the Indian economy according to Dadabhai Naoroji?

a) It enriched India's economy

b) It caused widespread poverty and famine

c) It led to rapid industrialization

d) It improved agricultural productivity

GS Mains Questions and Model Answers

Q1. Explain the concept of 'Drain of Wealth' as described by Dadabhai Naoroji in his book 'Poverty and Un-British Rule in India'.

Answer: The "Drain of Wealth" theory, as proposed by Dadabhai Naoroji, describes the systematic transfer of India's wealth to Britain during colonial rule. Naoroji argued that the economic policies of the British were designed to benefit Britain at India's expense, causing severe poverty and economic decline in India. The wealth generated in India was not reinvested in the country but was sent to Britain in the form of salaries, profits, and pensions for British officials. This economic drain left India impoverished and underdeveloped, leading to widespread poverty and famine.

Q2. How did Dadabhai Naoroji's 'Poverty and Un-British Rule in India' influence the Indian nationalist movement?

Answer: 'Poverty and Un-British Rule in India' played a pivotal role in shaping Indian nationalist thought by highlighting the economic exploitation of India by the British. Dadabhai Naoroji’s detailed analysis of the "Drain of Wealth" exposed the detrimental effects of British rule on India's economy. This helped galvanize public opinion and strengthened the demand for self-rule. Naoroji’s work provided an intellectual basis for economic and political arguments against British rule, inspiring leaders like Bal Gangadhar Tilak and Mahatma Gandhi.

Q3. Assess the relevance of Dadabhai Naoroji’s ideas in 'Poverty and Un-British Rule in India' in understanding colonial economic policies.

Answer: Dadabhai Naoroji's ideas in 'Poverty and Un-British Rule in India' remain highly relevant in understanding the colonial economic policies of the British Empire. Naoroji's "Drain of Wealth" theory effectively highlighted how colonialism systematically extracted resources from the colonized regions, leading to economic stagnation and widespread poverty. His work laid the foundation for future critiques of imperialism and colonial exploitation. The ideas continue to be studied as a classic example of how colonial policies can perpetuate underdevelopment in colonized countries.

Previous Year Questions on  Poverty and Unbritish Rule in India

1. UPSC CSE Prelims 2013

Question. Who is known as the "Grand Old Man of India" and authored 'Poverty and Un-British Rule in India'?

Answer: Dadabhai Naoroji

Explanation: Dadabhai Naoroji, often referred to as the "Grand Old Man of India," authored the book 'Poverty and Un-British Rule in India,' in which he critically analyzed British economic policies in India.

2. UPSC CSE Mains 2019

Question. How did the 'Drain of Wealth' theory contribute to the Indian nationalist movement?

Answer: The "Drain of Wealth" theory proposed by Dadabhai Naoroji argued that British economic policies were designed to exploit India’s resources and transfer wealth to Britain. This theory exposed the financial and economic exploitation of India under British rule and became a rallying point for Indian nationalists, who demanded economic justice and self-rule. It contributed to the broader critique of British colonialism and helped mobilize Indians against British rule.