What do you mean by drain of indian wealth during the colonial period?
The term economic drain was 1st used by dadabhai naoroji. this means all commercial crops and money to buy british people. the form of economic drain are as follows :
a) drain in the form of excess exports.
b) payment of high salaries to british officials.
c) payment of high dividend on british investment
d) indias income they utilised to meet the expenses on war
India has been an important trading nation since ancient times. But the restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India’s foreign trade. Consequently India became an exporter of primary products and an importer of finished consumer goods and capital goods. The most important characteristic of India’s foreign trade throughout the colonial period was the generation of a large export surplus. But this surplus came at huge cost to the country’s economy. Furthermore, this export surplus did not result in any flow of gold or silver into India. Rather, this was used to make payments for the expenses incurred by an office set up by the colonial government in Britain, expenses on war, again fought by the British government, and the import of invisible items, all of which led to the drain of Indian wealth.