Which one among the following statements appropriately defines the term ‘drain theory’ as propounded by Dadabhai Naoroji in his work ‘Poverty and un-British Rule in India ?

Dadabhai Naoroji's 'drain theory', articulated in his seminal work 'Poverty and Un-British Rule in India', defines the economic drain as a portion of India's national product that was not available for domestic consumption but was sent to Britain for political reasons [2]. Naoroji argued that India exported a significant amount of wealth and goods—averaging 13 million pounds annually between 1835 and 1872—for which the country received no corresponding economic or material returns [3]. This 'unrequited export' constituted an organized extraction of wealth that financed Britain's industrial development while impoverishing India [4]. The drain included components like 'Home Charges', salaries and pensions of British officials, and interest on foreign loans [2]. While other options describe general colonial exploitation, Option 1 specifically captures Naoroji's technical definition of the drain as wealth exported without material return.

Sources

1. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Economic Drain > p. 548
2. [2] History , class XII (Tamilnadu state board 2024 ed.) > Chapter 1: Rise of Nationalism in India > 1.6 Naoroji and his Drain Theory > p. 12
3. [3] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 5: The Structure of the Government and the Economic Policies of the British Empire in India, 1757—1857 > British Economic Policies in India, 1757-1857 > p. 98
4. [4] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > First Stage > p. 553