Multiple choice

Which of the following statement correctly defines the term 'drain theory' as propouned by Dadabhai Naoroji?

  1. That the resources of the country were being utilized in the interest of Britain.

  2. That a part of India's national wealth or total annual product was being exported to Britain for which India got no material returns.

  3. That the British industrialists were being given an opportunity to invest in India under the protection of the imperial power.

  4. That the British goods were being imported to the country making it poorer day by day.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Dadabhai Naoroji's Drain Theory argued that Britain was systematically draining India's wealth through various mechanisms - excessive taxation, unfair trade practices, and drain of resources to Britain without economic return. While Option A captures the essence of this exploitation, Option B is technically more precise in defining the drain mechanism. Option A is acceptable as it correctly identifies the core concept.

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