Q. Which one of the following statements does correctly defines the term ‘drain theory’ as propounded by Dadabhai Naoroji?
Answer: That a part of India’s national wealth or total annual product was being exported to Britain for which India got no material return
Notes: In 1867, Dadabhai Naoroji put forward the 'drain of wealth' theory in which he stated that the Britain was completely draining India. ... The drain of wealth was the portion of India's wealth and economy that was not available to Indians for consumption.