History · Colonial Economy
UGC NET June 2013 History
After 1833 the single biggest source of the drain of Indian wealth to Britain was
AExport of opium
BExport of indigo
CBritish capital investment in India ✓ Correct
DExport of cotton
Correct answer: (C) British capital investment in India — After 1833 the biggest source of the drain was British capital investment in India, so that is the answer.
Explanation
★After 1833 the biggest source of the drain was British capital investment in India, so that is the answer.
★British capital was poured into railways, banks and other enterprises in India.
★The interest, profits and dividends on this capital flowed back to Britain.
★This steady outflow became the leading channel of the drain of wealth.
★Colonialism is often divided into three stages.
★These are mercantilism, the colonialism of free trade, and the era of foreign investment.
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