---
title: "Drain of Wealth Definition | Model Diplomat"
description: "The Drain of Wealth describes the unrequited transfer of India's resources to Britain during colonial rule, a key concept for civil service aspirants."
url: "https://modeldiplomat.com/learn/glossary/drain-of-wealth"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Drain of Wealth refers to the systematic, unrequited transfer of India's wealth and resources to Britain during colonial rule without an adequate economic return.
- Who first systematically propounded the Drain of Wealth theory?
- What were the main channels through which wealth drained from India?
- How did the Drain of Wealth theory influence the nationalist movement?
- What is the imperialist counter-argument to the drain theory?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Drain of Wealth refers to the systematic, unrequited transfer of India's wealth and resources to Britain during colonial rule without an adequate economic return.

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Example

In 1901 Dadabhai Naoroji published \*Poverty and Un-British Rule in India\*, estimating the annual drain from India to Britain at around £30–40 million and giving the Indian National Congress its central economic argument.

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[Economic Impact Of Colonial Rule](https://modeldiplomat.com/learn/lessons/upsc-modern-history-economic-impact-of-colonial-rule)[Rise Of Nationalism The Early Congress](https://modeldiplomat.com/learn/lessons/upsc-modern-history-rise-of-nationalism-the-early-congress)

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