THE name of Dadabhai Naoroji has been associated in the minds of. Indians students of economics with the controversial ‘Drain Theory’: Dadabhai spoke and . Dadabhai Naoroji and the Drain Theory [B.N. Ganguli] on *FREE* shipping on qualifying offers. The Drain of Wealth theory was systemically initiated by Dadabhai Naoroji in and further analysed and developed by R.P. Dutt, M.G Ranade etc. The ” drain.

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Dadabhai Naoroji 4 September — 30 Juneknown as the Grand Old Man of Indiawas a Parsi intellectual, educator, cotton trader, and an early Indian political and social leader.

Drain Theory: What do you mean by Drain Theory?

Dran is also credited with the founding of the Indian National Congressalong with A. Hume and Dinshaw Edulji Wacha. He was also a member of the Second International naorpji with Kautsky and Plekhanov.

India Post dedicated stamps to Naoroji inand Being an Athornan ordained priestNaoroji founded the Rahnumae Mazdayasne Sabha Guides on the Mazdayasne Path on 1 August to restore the Zoroastrian religion to its original purity and simplicity.

Inhe also founded a Gujarati fortnightly publication, the Rast Goftar or The Truth Tellerto clarify Zoroastrian concepts and promote Parsi social reforms. Within three years, he had resigned on ethical grounds.

Later, he became professor of Gujarati at University College London. InNaoroji directed the launch the London Indian Society, the purpose of which was to discuss Indian political, social and literary subjects.

The Association was instrumental in counter-acting the propaganda by the Ethnological Society of London which, in its session inhad tried to prove the inferiority of the Asians to the Europeans. This Association soon won the support of eminent Englishmen and was able to exercise considerable influence in the British Parliament. He was also a member of the Indian National Association founded by Sir Surendranath Banerjee from Calcutta a few years before the founding of the Indian National Congress in Bombay, with the same objectives and practices.

Naoroji published Poverty and un-British Rule in India nzoroji Elected to the British House of Commons as a result of the electionhe served until He had a very clear vision and was an effective communicator. He set forth his views about the situation in India over the course of history of the governance of the country and the way in which the colonial rulers noroji. Naoroji moved to Britain once again and continued his political involvement. He was also a notable Freemason.

In his political campaign and duties as an MP, he was assisted by Muhammed Ali Jinnahthe future Muslim nationalist and founder of Pakistan.

InNaoroji was again elected president of the Indian National Congress. Naoroji was a staunch moderate within the Congress, during the phase when opinion in the party was split between the moderates and extremists. He was married to Gulbai at the age of eleven. He died in Bombay on 30 Juneat the age of Today the Dadabhai Naoroji Roada heritage road of Mumbai, is named after him. A prominent residential colony for central government servants in the south of Delhi is also named Naoroji Nagar.

His granddaughters Perin and Khrushedben were also involved in the freedom struggle.

InKhurshedben was arrested along with other revolutionaries for attempting to hoist the Indian flag in a Government College in Ahmedabad. Dadabhai Naoroji’s work focused on the drain of wealth from India to England during colonial rule of British in India.


Through his work with economics, Naoroji sought to prove that Britannia was draining money out of India. Firstly, India is governed by a foreign government.

Dadabhai Naoroji and His Drain of Wealth Theory

Secondly, India does not attract immigrants which bring labour and capital for economic growth. Thirdly, India pays for Britain’s civil administrations and occupational army.

Fourthly, India bears the burden of empire building in and out of its borders. Fifthly, opening the country to free trade was actually a way to xadabhai India by offering highly paid jobs to foreign personnel. Lastly, the principal income-earners would buy outside of India or leave with the money as they were mostly foreign personnel. Naoroji described this as vampirism, with money being a metaphor for blood, which humanised Sadabhai and attempted to show Britain’s actions as monstrous in an attempt to garner sympathy for the nationalist movement.

When referring to the Drain, Dadabyai stated that he believed some tribute was necessary as payment for the services that England brought to India such as the railways. However the money from these services were being drained out of India; for instance the money being earned by the railways did not belong to India, which supported his assessment that India was giving too much to Britain.

India was paying tribute for something that was not bringing profit to the country directly. Instead of thery off foreign investment which other countries did, India was paying for services rendered despite the operation of the railway being already profitable for Britain.

This type of drain was experienced in different ways as well, for instance, British workers earning wages that were not equal with the work that they have done in India, or trade that undervalued India’s nsoroji and overvalued outside goods.

Furthermore, the East India Company was purchasing Indian goods with money drained from India to export to Britain, which was a way that the opening up of free trade allowed India to be exploited.

When elected to Parliament by a narrow margin of 5 votes his first speech was about questioning Britain’s role in Xrain. Naoroji explained that Indians were either British subjects or British slaves, depending on how willing Britain was to give India the institutions that Britain already operated. By giving these institutions to India it naodoji allow India to govern itself and as a result the revenue would stay in India.

By presenting himself as an Imperial citizen he was able to use rhetoric to show the benefit to Britain that an ease of financial burden on India would have. He argued that by allowing the money earned in India to stay in India, tributes would be willingly and easily paid without fear of poverty; he argued that this could be done by giving thsory employment opportunities to Indian professionals who consistently took jobs they were over-qualified for.

Indian labour would be more likely to spend their income within India preventing one aspect of the drain. It was also important to examine British and Indian trade to prevent the end of budding industries due to dadabhxi valuing of goods and dain. Over time, Naoroji became more extreme in his comments as he began to lose patience with Britain. This was shown in his comments which became increasingly aggressive.

Dadabhai Naoroji and his Drain of Wealth Theory | My India

Naoroji showed how the ideologies of Britain conflicted when asking them if they would allow French youth to occupy all the lucrative posts in England. He also brought up the way that Britain objected to the drain of wealth to the papacy during the 16th century. This commission reviewed financial burdens on India and in some cases came to the conclusion that those burdens were misplaced.


Dadabhai Naoroji is regarded as one of the most important Indians during the independence movement. In his writings, he considered that the foreign intervention into India was clearly not favourable for the country. Further development was checked by the frequent invasions of India by, and the subsequent continuous rule of, foreigners of entirely different character and genius, who, not having any sympathy with the indigenous literature — on the contrary, having much fanatical antipathy to the religion of the Hindus — prevented its further growth.

Priest-hood, first for power and afterwards from ignorance, completed the mischief, as has happened in all other countries. Mahatma Gandhi wrote to Naoroji in a letter of that “The Indians look up to you as children to the father.

Such is really the feeling here.

draln Bal Gangadhar Tilak admired him; he said:. If we twenty eight crore of Indians were entitled to send only one member to the British parliament, there is no doubt that we would have elected Dadabhai Naoroji unanimously to grace that post. Here are the significant extracts taken from his speech delivered before the East India Association on 2 May regarding what educated Indians expect from their British rulers.

The difficulties thrown in the way of according to the natives such reasonable share and voice in the administration of the country ad they daeabhai able to take, are creating some uneasiness and distrust. The universities are sending out hundreds and will soon begin to send out theorh of educated natives.

This drzin naturally draim in influence All [the Europeans] effectually do is to eat the substance of India, material and moral, while living there, and when they go, they carry away all they have acquired. The thousands [of Indians] that are being sent out by the universities every year find themselves in a most anomalous position. There is no place for them in their motherland.

What must be the inevitable consequence? In this above quotation he explains his theory in which the British used India as a drain of wealth. From Wikipedia, the free encyclopedia. Retrieved 1 June Retrieved 19 May Retrieved 9 December Retrieved 13 December Hinnells dadwbhai April Retrieved 2 December — via British Newspaper Archive. Dadabhai Naoroji and the Drain Theory. The Journal of Asian Studies. Economic and Political Weekly. Indians in the Late Victorian Empire Durham.

New Delhi Mittal Publications. The Political Thought of Dadabhai Naoroji. Masani, Dadabhai Naoroji Life Sketch and Contribution to Indian Economy. Bhownaggree,” Media History 15 Fall— Metcalf and Metcalf, Concise History of India.

Cotton Gokhale Naoroji R. Vijayaraghavachariar Khan Das M. Nijalingappa — Jagjivan Ram — S. Gandhi Rao Pawar S. Gandhi Mukherjee Shinde Kharge. Retrieved from ” https: Wikipedia articles incorporating a citation from the Encyclopaedia Britannica with Wikisource reference CS1 maint: Views Read Edit View history. In other projects Naooroji Commons Wikiquote Wikisource.

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