Drain of Wealth (Tribute)
The term "drain of wealth" refers to the economic theory that the British colonial rule resulted in the systematic transfer of wealth from India to Britain. This concept was notably articulated by Dadabhai Naoroji in his book "Poverty and Un-British Rule in India." The drain of wealth occurred through various mechanisms:
- Tribute Payments: Large sums of money were sent to Britain as payments for services, administration, and wars conducted by the British Empire, funded by Indian revenues.
- Trade Policies: India exported raw materials to Britain and imported British manufactured goods, creating a trade imbalance.
- Home Charges: Expenses related to the administration of India and salaries of British officials working in India were paid out of Indian revenues but spent in Britain.
Land Revenue Settlements
British land revenue policies were designed to extract maximum revenue from Indian agriculture. There were three main systems of land revenue collection:
- Zamindari System:
- Implemented primarily in Bengal, Bihar, and Odisha.
- Zamindars (landlords) were recognized as the owners of the land and responsible for collecting and paying land revenue to the British.
- Created a class of absentee landlords who often exploited peasants.
- Ryotwari System:
- Implemented in Madras, Bombay, and parts of Assam.
- Land revenue was collected directly from the individual cultivator (ryot) who was recognized as the landowner.
- The ryots had to pay a fixed sum directly to the government, leading to high tax burdens.
- Mahalwari System:
- Implemented in parts of North-Western Provinces, Central India, and Punjab.
- Revenue was assessed collectively on a village or mahal, with the village headman responsible for collection.
- Aimed to balance the zamindari and ryotwari systems but often led to exploitation by local officials.
Deindustrialisation
The British colonial policies led to significant deindustrialisation in India:
- Destruction of Traditional Industries:
- Traditional handicrafts and artisanal industries were destroyed due to competition from British manufactured goods.
- Imposition of tariffs and duties favored British products over Indian handmade goods.
- Textile Industry Decline:
- Indian textile industry, particularly cotton and silk, faced severe setbacks due to the influx of cheap British textiles.
- Millions of weavers and artisans were rendered jobless.
Railways and Commercialisation of Agriculture
- Railways:
- Introduced primarily to serve British economic interests, facilitating the transport of raw materials from the interior to ports for export.
- Opened up internal markets and integrated the national economy, but often disrupted local economies and traditional trade routes.
- Accelerated the penetration of commercial agriculture.
- Commercialisation of Agriculture:
- Shift from subsistence farming to cash crops (indigo, cotton, opium, tea) dictated by British commercial interests.
- Led to monoculture practices, increased vulnerability to market fluctuations, and food insecurity due to reduced cultivation of food crops.
Growth of Landless Labour
The economic policies of the British Raj contributed to the growth of landless labourers:
- Displacement of Peasants:
- High land revenue demands and indebtedness led to the loss of land by small farmers.
- Creation of large estates and commercial farming displaced many peasants, forcing them into wage labour.
- Rural Proletariat:
- Deindustrialisation and decline of traditional industries pushed artisans and craftsmen into agriculture as labourers.
- Increased land fragmentation and population growth also contributed to a large class of landless labourers.
