Answer :

The drain of wealth theory was propounded by Dadabhai Naoroji in 19th century.

During the colonial period the British exploited the Indian resources and their prime motive to conquer India was that they could make it a source for cheap raw materials for their own industries.

Large export surplus was generated by India's foreign trade but it benefitted Britain more than that it did to India.

The other reasons for drain of wealth were

The income of Indians was spent on expensive imports of finished goods from Britain, which made Britain richer at the expense of India.

The Indians were employed in British army at low salaries.

The expenses of War and administration incurred by British government to manage their Colonial rule in India were drawn from the revenue collected from India.

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