The term “Drain of Wealth” refers to the economic exploitation of India during the period of British colonial rule in the nineteenth and early twentieth centuries.
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It signifies the systematic transfer of wealth and resources from India to Britain, resulting in significant economic disparities and hindered development in India. The drain was facilitated through policies such as excessive taxation, exploitative land revenue systems, trade restrictions, and the extraction of natural resources. British control over India’s economy enabled them to extract wealth in the form of profits, raw materials, and skilled labor. The drain of wealth had detrimental consequences for India’s economic growth, as it impeded industrialization, suppressed local industries, and perpetuated poverty among the majority of the population. The drain of wealth became a focal point for nationalist movements, as they aimed to challenge British economic exploitation and strive for self-sufficiency.