Author: Dadabhai Naoroji
Publisher: Publications Division
ISBN/UPC (if available): 8123001096
This book, first published in 1901, is a classic of Indian history and economics , which was to become the Bible of nationalist agitators against British rule. Referring to this book, Gandhiji wrote "My first acquaintance with the extent of Indian poverty was through Dadabhai's book".
In explaining the poverty of India , Dadabhai Naoroji argued that the main cause was the drain of wealth from India. He was the acknowledged theoretician - the high priest - of the Drain theory. He literally dedicated his life to propagating the Drain theory. Backed by an array of statistics and powerful economic reasoning, he launched a powerful campaign against the Drain as the fundamental evil of British rule in India.
He put forward several estimates of the quantum of the Drain over the years. In 1870, he computed the amount of Drain to be 12 millions. In 1876, he asserted that from 1870 to 1872, this amount averaged Pound Sterling 27.4 million per year. Finally, in 1905, he declared that nearly 34 million sterling or Rs 515 million were being drained out of India every year.
He pointed out that Britain was extracting wealth from India as the price of her rule in India and that out of the revenues raised in India, nearly one-fourth goes clean out of the country, and is added to the resources of Britain, and that India was consequently being continuously bled.