In which book did Dadabhai Naoroji present his 'drain of wealth' theory?

• Dadabhai Naoroji put forward the 'drain of wealth' theory in which he stated that Britain was completely draining India.
• He described the constant one-way flow of wealth from India to England for which India received no returns as 'Drain of Wealth'. This occurs when gold and silver flow out of a country as a result of an adverse trade balance.

The consequence of the Drain of wealth was as follows

• It impoverished all the sections of Indian society particularly the peasants, who bore the brunt of the taxes raised by the Britishers.
• It drained India of its precious capital, which could have otherwise been invested in the industrialization/ modernization of India.
• The drain of Indian wealth was used for financing the Industrial Revolution in England and is also the reason why the industrial revolution did not take place in India.
• The economic criticism of British rule had helped in shattering the myth of benevolence of British administration in India.
• It was instrumental in laying the foundations for the demand for Swaraj and the ensuing freedom struggle.