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Q20 (IAS/2015) History & Culture › National Movement (1857–1947) › Colonial economic impact Official Key

Who of the following was/were economic critic/critics of colonialism in India? 1. Dadabhai Naoroji 2. G. Subramania Iyer 3. R. C. Dutt Select the correct answer using the code given below.

Result
Your answer: —  ·  Correct: D
Explanation

Dadabhai Naoroji, known as the 'Grand Old Man of India', was the foremost economic analyst who put forward the theory of economic drain in his work "Poverty and UnBritish Rule in India"[2]. He argued that India had exported an average of 13 million pounds worth of goods to Britain each year from 1835 to 1872 with no corresponding return[3].

G. Subramaniya Iyer was among the other economic analysts[5] who critiqued British colonialism alongside figures like Gokhale and Prithwishchandra Ray. R. C. Dutt (Romesh Chandra Dutt), author of "The Economic History of India", was also identified as a prominent economic analyst[2] of the colonial period.

These early nationalists carefully analysed the political economy of British rule in India and put forward the "drain theory" to explain British exploitation[6]. They argued that nineteenth century colonialism transformed India into a supplier of foodstuffs and raw materials to Britain, a market for British manufacturers, and a field for investment of British capital[5]. All three individuals were therefore economic critics of colonialism in India.

Sources
  1. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
  2. [2] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
  3. [3] History , class XII (Tamilnadu state board 2024 ed.) > Chapter 1: Rise of Nationalism in India > 1.6 Naoroji and his Drain Theory > p. 12
  4. [4] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 549
  5. [5] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 549
  6. [6] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 11: Indian National Congress: Foundation and the Moderate Phase > Economic Critique of British Imperialism > p. 250
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Q. Who of the following was/were economic critic/critics of colonialism in India? 1. Dadabhai Naoroji 2. G. Subramania Iyer 3. R. C. Dutt Se…
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10

This is a 'Sitter' category question. It targets the core intellectual contribution of the Moderate phase, explicitly detailed in every standard Modern History text (Spectrum/Bipin Chandra). Missing this indicates a gap in reading the foundational chapters on the 'Economic Impact of British Rule'.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Was Dadabhai Naoroji an economic critic of British colonialism in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
Presence: 5/5
“The early intellectuals of the first half of the nineteenth century supported British rule under the impression that it would modernise the country based on latest technology and capitalist economic organisation. After the 1860s, disillusionment started to set in among the politically conscious and they began to probe into the reality of British rule in India. The foremost among these economic analysts was Dadabhai Naoroji, the 'Grand Old Man of India', who after a brilliant analysis of the colonial economy put forward the theory of economic drain in Poverty and UnBritish Rule in India. Other economic analysts included Justice Mahadeo Govind Ranade, Romesh Chandra Dutt (The Economic History”
Why this source?
  • Identifies Naoroji as the foremost early economic analyst among Indian intellectuals.
  • Specifies he formulated the 'drain theory' and criticised the colonial economy in Poverty and Un-British Rule in India.
History , class XII (Tamilnadu state board 2024 ed.) > Chapter 1: Rise of Nationalism in India > 1.6 Naoroji and his Drain Theory > p. 12
Presence: 5/5
“His major contribution to the Indian nationalist movement was his book Poverty and Un-British Rule of the British in India (1901). In this book, he put forward the concept of 'drain of wealth'. He stated that in any country The tax raised would have been spent for the wellbeing of the people of that country. But in British India, taxes collected in India were spent for the welfare of England. Naoroji argued that India had exported an average of 13 million pounds worth of goods to Britain each year from 1835 to 1872 with no corresponding return.”
Why this source?
  • Describes Naoroji's major contribution: his book Poverty and Un-British Rule in India.
  • Explains he developed the 'drain of wealth' argument with quantitative claims about exports to Britain.
Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 12: Growth of New India—The Nationalist Movement 1858—1905 > Economic Reforms > p. 209
Presence: 5/5
“In the economic field, the early nationalists complained of India's growing poverty and economic backwardness, and the failure of modern industry and agriculture to grow; and they put the blame on the policies of the British rulers. Thus Dadabhai Naoroji declared as early as 1881 that British rule was "an everlasting, increasing, and every day increasing foreign invasion" that was "utterly, though gradually, destroying the country".”
Why this source?
  • Records a direct, strongly critical statement by Naoroji (1881) characterising British rule as an increasing foreign invasion.
  • Shows his explicit attribution of India's poverty and backwardness to British policies.
Statement 2
Was G. Subramania Iyer an economic critic of British colonialism in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 549
Presence: 5/5
“of India), Gopal Krishna Gokhale, G. Subramaniya Iyer and Prithwishchandra Ray. The essence of nineteenth century colonialism, they said, lay in the transformation of India into a supplier of foodstuffs and raw-materials to the metropolis, a market for metropolitan manufacturers and a field for investment of British capital. These early nationalist analysts organised intellectual agitations and advocated a complete severance of India's economic subservience to Britain and the development of an independent economy based on modern industries.”
Why this source?
  • Directly names G. Subramaniya Iyer among early nationalist analysts who analysed the colonial economy.
  • Explicitly states these analysts argued Britain transformed India into a supplier of raw materials and a market for British industry and advocated severance of economic subservience.
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Summary > p. 556
Presence: 4/5
“● Economic Impact of British Rule Deindustrialisation—ruin of artisans and handicraftsmen. Impoverishment of peasantry—ruralisation of India. Emergence of new land relations—ruin of old zamindars. Stagnation and deterioration of agriculture. Commercialisation of Indian agriculture. Development of modern industry. Rise of Indian national bourgeoisie. Economic drain. Famine and poverty. ● Nationalist Critique India getting poorer due to colonial exploitation. Problem of poverty—a national problem of raising productive capacities and energy. Development equated with industrialisation, which should take place through Indian, not foreign capital. British policies on trade, finance, infrastructure development, expenditure designed to serve imperialist interests. Need for complete severance of India's economic subservience to Britain and development of an independent economy.”
Why this source?
  • Summarises the nationalist critique that India grew poorer due to colonial exploitation and called for severance from British economic control.
  • Provides the ideological context that matches the position attributed to early critics like G. Subramaniya Iyer.
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Economic Impact of British Rule in India > p. 541
Presence: 3/5
“The major difference between the British colonists in India and earlier invaders was that none of the earlier invaders made any structural changes in Indian economy or drained away India's wealth as tribute. British rule in India caused a transformation of India's economy into a colonial economy, i.e., the structure and operation of Indian economy were determined by the interests of the British economy. According to historians, at the beginning of the eighteenth century India had some 23 per cent of the world economy. This share came down to some 3 per cent when India got independence. A detailed survey of the economic impact of British rule follows.”
Why this source?
  • Describes the structural transformation of India into a 'colonial economy' determined by British interests, the factual basis for nationalist economic criticism.
  • Supplies general economic consequences (deindustrialisation, subordination) that critics targeted.
Statement 3
Was R. C. Dutt (Romesh Chunder Dutt) an economic critic of British colonialism in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 11: Indian National Congress: Foundation and the Moderate Phase > Economic Critique of British Imperialism > p. 250
Presence: 5/5
“The early nationalists, led by Dadabhai Naoroji, R.C. Dutt, Dinshaw Wacha and others, carefully analysed the political economy of British rule in India, and put forward the "drain theory" to explain British exploitation of India. They opposed the transformation of a basically self-sufficient Indian economy into a colonial economy (i.e., a supplier of raw materials and food stuff, an importer of finished goods and a field of investment for British capital). Thus, the Moderates were able to create an all-India public opinion that British rule in India was the major cause of India's poverty and economic backwardness. To mitigate the deprivation characterising Indian life,”
Why this source?
  • Explicitly names R.C. Dutt among early nationalists who 'carefully analysed the political economy of British rule' and who 'put forward the "drain theory"' to explain British exploitation.
  • Links Dutt with the Moderates' economic critique that British rule caused India's poverty by transforming the economy into a colonial supplier/market.
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
Presence: 4/5
“The early intellectuals of the first half of the nineteenth century supported British rule under the impression that it would modernise the country based on latest technology and capitalist economic organisation. After the 1860s, disillusionment started to set in among the politically conscious and they began to probe into the reality of British rule in India. The foremost among these economic analysts was Dadabhai Naoroji, the 'Grand Old Man of India', who after a brilliant analysis of the colonial economy put forward the theory of economic drain in Poverty and UnBritish Rule in India. Other economic analysts included Justice Mahadeo Govind Ranade, Romesh Chandra Dutt (The Economic History”
Why this source?
  • Identifies Romesh Chandra Dutt as one of the 'other economic analysts' following Dadabhai Naoroji in probing the reality of British rule.
  • Places Dutt in the group of nineteenth-century economists who developed critiques of colonial economic impact.
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 549
Presence: 4/5
“of India), Gopal Krishna Gokhale, G. Subramaniya Iyer and Prithwishchandra Ray. The essence of nineteenth century colonialism, they said, lay in the transformation of India into a supplier of foodstuffs and raw-materials to the metropolis, a market for metropolitan manufacturers and a field for investment of British capital. These early nationalist analysts organised intellectual agitations and advocated a complete severance of India's economic subservience to Britain and the development of an independent economy based on modern industries.”
Why this source?
  • Describes early nationalist analysts (context including Dutt) diagnosing the transformation of India into a supplier of raw materials and advocating severance of economic subservience to Britain.
  • Shows the political-economic conclusions arising from analyses like Dutt's—aiming for independent economic development.
Pattern takeaway: UPSC frequently tests the 'Who's Who' of specific ideological strands (e.g., Who were the socialists? Who were the economic critics?). When a standard book lists 4-5 names under a specific heading, memorise the entire set, not just the leader.
How you should have studied
  1. [THE VERDICT]: Sitter. Direct lift from Spectrum Chapter 28 ('Nationalist Critique of Colonial Economy') or Old NCERT Bipin Chandra.
  2. [THE CONCEPTUAL TRIGGER]: The 'Economic Critique of Colonialism'—the most significant achievement of the Moderate Phase (1885–1905).
  3. [THE HORIZONTAL EXPANSION]: Memorize the full roster of economic critics: Justice M.G. Ranade, G.V. Joshi, Gopal Krishna Gokhale, and Prithwishchandra Ray. Know their key works: Naoroji's 'Poverty and Un-British Rule', R.C. Dutt's 'Economic History of India'.
  4. [THE STRATEGIC METACOGNITION]: Do not just study political events (Surat Split, Swadeshi). UPSC prioritizes 'Intellectual History'. When reading about a movement (like the Moderates), isolate their specific ideological pillars (Drain Theory) and the key proponents associated with them.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Naoroji's Drain Theory
💡 The insight

Central concept Naoroji developed to argue that British rule caused a net transfer of wealth from India to Britain, underpinning his economic critique.

High-yield for UPSC: frequently tested in questions on economic impact of colonialism and early nationalist thought. Connects to topics on colonial fiscal policy, trade balance, and nationalist responses. Study by reviewing Naoroji's arguments, figures he cited, and how later nationalists built on or contested the theory.

📚 Reading List :
  • History , class XII (Tamilnadu state board 2024 ed.) > Chapter 1: Rise of Nationalism in India > 1.6 Naoroji and his Drain Theory > p. 12
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
🔗 Anchor: "Was Dadabhai Naoroji an economic critic of British colonialism in India?"
📌 Adjacent topic to master
S1
👉 Early Nationalist Economic Critique
💡 The insight

Shows Naoroji as a pioneer among early nationalists who systematically analysed colonial economic effects and led public debate.

Important for essays and mains answers on origins of Indian nationalism and economic causes of dissent. Links political organisation (INC, East India Association) with intellectual critique. Prepare by mapping leaders, their analyses, and institutional efforts to publicise critiques.

📚 Reading List :
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
  • Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 12: Growth of New India—The Nationalist Movement 1858—1905 > GROWTH OF NEW INDIA—THE NATIONALIST MOVEMENT 1858-1905 205 > p. 205
🔗 Anchor: "Was Dadabhai Naoroji an economic critic of British colonialism in India?"
📌 Adjacent topic to master
S1
👉 Transformation into a Colonial Economy
💡 The insight

Captures the critique that British policy converted India into a supplier of raw materials and a market for British goods — a theme used by Naoroji and contemporaries.

Useful for comparative questions on economic structure changes under colonialism and policy impacts (deindustrialisation, trade patterns). Enables answers on causes of economic decline and policy-specific critiques; revise trade patterns, fiscal allocation, and nationalist responses.

📚 Reading List :
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 11: Indian National Congress: Foundation and the Moderate Phase > Economic Critique of British Imperialism > p. 250
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 2: Major Approaches to the History of Modern India > Major Approaches to the History of Modern India ✫ 15 > p. 15
🔗 Anchor: "Was Dadabhai Naoroji an economic critic of British colonialism in India?"
📌 Adjacent topic to master
S2
👉 Nationalist critique of the colonial economy (drain & supplier/market model)
💡 The insight

The references show early nationalists — including G. Subramaniya Iyer — argued India was transformed into a supplier of raw materials and a market for Britain and advanced ideas like economic 'drain' and severance from British control.

High-yield for UPSC modern history and economy questions: explains the ideological basis for early nationalist economic policy demands, links to topics like deindustrialisation and drain theory, and aids answers on causes of poverty and nationalist economic responses. Prepare by mapping key proponents, core arguments, and policy implications.

📚 Reading List :
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 549
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 11: Indian National Congress: Foundation and the Moderate Phase > Economic Critique of British Imperialism > p. 250
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Summary > p. 556
🔗 Anchor: "Was G. Subramania Iyer an economic critic of British colonialism in India?"
📌 Adjacent topic to master
S2
👉 Role of early nationalist intellectuals in economic analysis
💡 The insight

Evidence explicitly lists G. Subramaniya Iyer alongside other intellectuals who analysed and criticised colonial economic structures.

Useful for questions on leadership, intellectual history, and the Moderate phase of the national movement; helps differentiate contributions of personalities (economic critique vs. political reform). Study by grouping figures by issue (economic, social, political) and citing primary arguments.

📚 Reading List :
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 549
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
🔗 Anchor: "Was G. Subramania Iyer an economic critic of British colonialism in India?"
📌 Adjacent topic to master
S2
👉 Transformation into a 'colonial economy' — deindustrialisation & subordination
💡 The insight

References describe structural effects (deindustrialisation, agricultural commercialisation, subordination to British industry) that formed the empirical basis for nationalist economic criticism.

Core for essay and mains answers on economic impact of British rule and agrarian distress; connects economic history with social consequences (poverty, famines). Learn by linking causes, consequences, and nationalist critiques with supporting facts and figures.

📚 Reading List :
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Economic Impact of British Rule in India > p. 541
  • Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 11: Economic Impact of the British Rule > DISRUPTION OF THE TRADITIONAL ECONOMY > p. 182
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Summary > p. 556
🔗 Anchor: "Was G. Subramania Iyer an economic critic of British colonialism in India?"
📌 Adjacent topic to master
S3
👉 Drain theory
💡 The insight

The references explicitly link R.C. Dutt with early nationalist analyses that framed British exploitation as a 'drain' of Indian wealth.

High-yield for History/Economy papers: explains a primary nationalist economic critique of colonialism, links to debates on causes of poverty and nationalist responses. Frequently appears in mains/essay questions on economic impact of British rule. Prepare by memorising proponents (Naoroji, Dutt), core argument, and criticisms.

📚 Reading List :
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 11: Indian National Congress: Foundation and the Moderate Phase > Economic Critique of British Imperialism > p. 250
  • Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 28: Economic Impact of British Rule in India > Nationalist Critique of Colonial Economy > p. 548
🔗 Anchor: "Was R. C. Dutt (Romesh Chunder Dutt) an economic critic of British colonialism i..."
🌑 The Hidden Trap

G.V. Joshi (Ganesh Vyankatesh Joshi) and Prithwishchandra Ray. These names appear in the exact same paragraph in Spectrum as the three options but haven't been asked yet. Expect a question like: 'Who among the following analyzed the secondary effects of British revenue policy?' pointing to G.V. Joshi.

⚡ Elimination Cheat Code

The 'Journalist Heuristic': If you know Dadabhai Naoroji (1) and R.C. Dutt (3) are definitive economic critics (wrote books on it), you are left with options C or D. G. Subramania Iyer founded 'The Hindu' and 'Swadesamitran'. It is logically impossible for a founding nationalist editor of that era to NOT be a critic of the colonial economy. Thus, select All.

🔗 Mains Connection

Mains GS1 & GS3 Link: The 'Drain Theory' is the historical precursor to modern debates on 'Capital Flight' and 'Balance of Payments'. Use Naoroji's data when writing answers on the historical roots of Indian poverty or the structural flaws of the colonial economy.

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SIMILAR QUESTIONS

IAS · 2008 · Q74 Relevance score: 2.93

Who among the following used the phrase ‘Un-British’ to criticize the English colonial control of India?

NDA-II · 2013 · Q42 Relevance score: 0.63

Consider the following statements : 1. Dadabhai Naoroji first put forward ‘the theory of drain of wealth’. 2. The Indian National Congress adopted a resoultion to criticize the drain of wealth in its annual session at Calcutta in 1896. Which of the statements given above is/are correct ?

CAPF · 2016 · Q108 Relevance score: -0.21

Match List I with List II and select the correct answer using the code given below Lists: List I (Author) a. Dadabhai Naoroji b. Prafulla Chandra Ray c. Mahadev Govind Ranade d. R.C.Dutt List II (Book) 1. Essays on Indian Economics 2. Poverty and UnBritish Rule in India 3. Economic History of India 4. The Poverty Problem in India

CAPF · 2017 · Q6 Relevance score: -1.00

Statement I : Dadabhai Naoroji argued that what was being drained out was ‘potential surplus’ that could generate more economic development in India if invested in India Statement I : Imperialists believed that India was brought into the large capitalist world market and that was in itself a progress towards modernization

IAS · 1996 · Q75 Relevance score: -1.84

Who among the following leaders did not believe in the drain theory of Dadabhai Naoroji ?