What do you understand by the drain of Indian wealth during the colonial period?
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Drain of wealth means that economic policies of the British in India were primarily motivated to snatch maximum benefits from India’s trade. India’s foreign trade generated large export surplus. This export surplus did not result in any flow of gold or silver into India. There was drain of India’s wealth into Britain. It is clear from the following facts.
- The surplus was used to make payments for the expenses incurred by the office set up by the colonial government in Britain.
- The surplus was used to pay expenses on war fought by the British government.
- Surplus was used to pay for the import of invisible items.
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