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Q58 (IAS/2011) History & Culture › National Movement (1857–1947) › Colonial economic impact Answer Verified

With reference to the period of colonial rule in India, “Home Charges” formed an important part of drain of wealth from India. Which of the following funds constituted “Home Charges”? 1. Funds used to support the India Office in London. 2. Funds used to pay salaries nad pension of British personnel 3. Funds used for waging wars outside India by the British. Select the Correct answer using the codes given below:

Result
Your answer: —  ·  Correct: B
Explanation

The correct answer is Option 2 (1 and 2 only). The "Home Charges" referred to the annual payments made by the Government of India to the Secretary of State in London, representing a significant component of the "Drain of Wealth."

  • Statement 1 is correct: Home Charges included the administrative expenses of the India Office in London, including the maintenance of the establishment and salaries of the Secretary of State and his council.
  • Statement 2 is correct: This category covered the pensions and salaries of British civil and military officers, as well as guaranteed interest on railway capital and payments for stores purchased in England.
  • Statement 3 is incorrect: While the British used Indian resources for imperial expansion, funds for waging wars outside India were generally categorized as military expenditures or imperial burdens rather than "Home Charges," which were specifically administrative and recurring financial obligations handled in London.

Thus, only statements 1 and 2 accurately constitute the components of Home Charges as defined by economic nationalists like Dadabhai Naoroji.

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