Home Charges are the interests of India's external debts and the payments of the salaries and pensions of British officials in India are what the Home Charges comprised of. The trade surplus was used to make these payments or the payments for the Home Charges.
The drain of Indian wealth during colonial period : The drain of Indian wealth during colonial period means using export surplus as payments for expense incurred by an office set up by the colonial government in Britain, expenses on war fought by the British Government and the import of invisible items.
Home Charges are the interests of India's external debts and the payments of the salaries and pensions of British officials in India are what the Home Charges comprised of. The trade surplus was used to make these payments or the payments for the Home Charges.
The main causes of India's agricultural stagnation during the colonial period were: → Land Settlement Policies: Colonial government introduced various land settlement policies such as Zamindari system in which maximum profit coming from agriculture sector went into the hands of Zamindars instead of cultivators.
Explanation: ) The main reason for the slow rate of growth of population during the British rule were poverty, malnutrition, famines, epidemics and poor health facilities.
An economic plan is an outline of schemes designed to achieve certain pre-determined economic objectives, in a particular order of priorities within a specified period of time. This is the technique that a state follows to achieve economic development. Economic Planning – Meaning, Features, Need, Types.
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.
Milton Friedman elaborated the drain of wealth theory propounded by dadabhai naoroji. It is also worth noting that this drain of wealth theory shows the constant flow of wealth from India to England. This then implies that India was unable to get an adequate economic, commercial as well as material return.
Drain theory is the theory put forward by Dadabhai Naoroji, which is included in his book 'Poverty and UnBritish Rule in India'. It deals about the truth that the drain of wealth to Britain was the root cause of poverty in India at the time of British rule.
Thus, the government played the leading role to provide the basic framework of heavy industries and infrastructure through public sector to facilitate the private sector. Thus, the public sector role was needed to Invest heavily, so as to raise the income of people that could in turn raise the demand and so on.
Answer: Yes, there were various positive contributions that were made by the British in India though these contributions wore not made with the objective of welfare for Indians but for the British interests. (iii) Introduction of Free Trade British forced India to follow free trade pattern during the colonial rule.
From the time of Independence India has been one of the important trading countries, exporting primary items like cotton, raw silk, sugar, wool, jute, and indigo, etc. And importer of finished consumer goods like woolen clothes, cotton, silk, and capital goods like light machinery manufactured in Britain.
Suez Canal was opened in 1869. Suez Canal is an artificial waterway running from North to South across the Isthmus of Suez in North-Eastern Egypt. It is one of the most important waterways in the world. Its opening reduced the cost of transportation and made access to the Indian market easier and economical.
Before independence, India used to export some goods. Those are leather, tea, jute products, iron, Apparels, Cloth, Coffee, Cashew Kernels, computer, Software, Engineering goods, Handicrafts, Gems, Jewellery, Metallic ores, Oil Cakes, Tobacco and Spices.
The main cause of food shortage in India after partition was that the food surplus areas of West Punjab and Sindh went to Pakistan. The British followed a typical colonial pattern of trade in India, where it was made to serve their interests.
During this period, Britain held the monopoly of over India's imports and exports. Therefore, most of the foreign trade was restricted only to Britain and other was while the rest half was allowed to trade with other countries like Ceylon (Sri Lanka), China, and Persia (Iran).
The state of India's foreign trade on the eve of Independence was as follows: (a) Net Exporter of Raw Material and Importer of Finished Goods. India became an exporter of primary products such as raw silk, cotton, wool, sugar, indigo, jute, etc.
The basic purpose of the British colonial rule over India was to compliment and serve the industrialisation process in Britain. In this regard, the sole aim of the colonial government was to reduce India to a mere supplier of the raw materials for the betterment and advancement of their home country.
The process of de-industrialisation of India began with the gradual disappearance of cotton manufactures from the list of India's exports and the remarkable growth of cotton manufactures in the list of her imports mainly from Britain.
First of all it was criticised by Sri Dadabhai Naoroji in his book “Poverty and Un British Rule in India” . He called ot as drain of wealth from Ganges to Thalmes.
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.
The commercialization of agriculture means that the agricultural crops and goods are produced by the peasants for sale in the market and not for their own consumption. Commercialization of agriculture in India began during the British rule.
Two books which Dada Bhai Naoroji wrote explaining the drain of Indian's wealth were Poverty and Unbritish Rule in India and Poverty of India (a collection of papers collectively published into a book).
