UPSC CSE Prelims
Drain of Wealth Theory Previous Year Questions (PYQs)
Practice solved questions for Drain of Wealth Theory with detailed step-by-step solutions, key insights, and trend analysis for UPSC CSE PRELIMS.
Solved Previous Year Questions
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The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons ?
Detailed Explanation:
The Hilton-Young Commission (1926) recommended fixing the rupee-sterling exchange rate at an artificially high level of 1s 6d per rupee.
The British government adopted this rate mainly to facilitate the payment of Home Charges (administrative expenses, pensions, debt payments, etc.) to Britain and to maintain India's financial credibility in London.
Therefore, Option A is correct.
| Home Charges were the payments made by colonial India to Britain for administrative costs, military expenses, pensions, and interest on debt. An artificially strong rupee reduced the number of rupees needed to buy sterling, making these remittances easier for the colonial government. This policy, however, hurt Indian exporters by making their goods costlier abroad. |
Who of the following was/were economic critic/critics of colonialism in India?
- Dadabhai Naoroji
- Subramania Iyer
- R.C. Dutt
Select the correct answer using the code given below.
Detailed Explanation:
✅ Statement 1 – Correct: Dadabhai Naoroji, the 'Grand Old Man of India', pioneered the 'Drain of Wealth' theory and authored 'Poverty and Un-British Rule in India' (1901), demonstrating how British policies impoverished India.
✅ Statement 2 – Correct: G. Subramania Iyer, co-founder of 'The Hindu', wrote 'Some Economic Aspects of British Rule in India' (1903), criticizing colonial economic exploitation and stagnation.
✅ Statement 3 – Correct: R.C. Dutt, a retired ICS officer, authored 'The Economic History of India' (1902, 1904), documenting the negative impact of British land revenue systems and trade policies.
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