History · Colonial Economy
UGC NET June 2024 History (Cancelled)
Which out of the following were the constituents of the economic drain? Choose the correct answer from the options given below.
- 1. Dividend to the shareholders of the British Crown
- 2. Interest on public debt raised abroad
- 3. Store purchases in England
- 4. Interest on foreign capital investments
- 5. Foreign banking, insurance and shipping companies
A1, 2, 3 and 4 only
B1, 2 and 4 only
C1, 3, 4 and 5 only
D2, 3, 4 and 5 only ✓ Correct
Correct answer: (D) 2, 3, 4 and 5 only — The correct statements are 2, 3, 4 and 5 only.
Explanation
★The correct statements are 2, 3, 4 and 5 only.
★The economic drain meant the continuous flow of wealth from India to England without adequate return.
★Its constituents included interest on public debt raised abroad.
★They included the purchase of stores in England for Indian administration.
★They also included interest on foreign capital investment and the earnings of foreign banking, insurance and shipping companies.
★The dividend went to East India Company shareholders, not British Crown shareholders, so the first statement is wrong.
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