Who among the following used the term ‘Drain of Wealth’ for the first time?

Dadabhai Naoroji, known as the 'Grand Old Man of India', was the first to propound the 'Drain of Wealth' theory to describe the systematic transfer of India's resources to Britain without any equivalent return. He first introduced this concept in 1867 and later detailed it in his seminal work, 'Poverty and Un-British Rule in India' (1901). Naoroji argued that the British were draining India of its productive capital, estimating that between 1835 and 1872, goods worth 13 million pounds were exported annually to Britain without compensation. This economic critique became a cornerstone of Indian nationalist ideology, highlighting how British taxation and administrative costs (Home Charges) were spent for the welfare of England rather than India. His analysis provided a logical framework for understanding India's poverty as a direct result of colonial exploitation [2].

Sources

1. [2] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 12: Growth of New India—The Nationalist Movement 1858—1905 > GROWTH OF NEW INDIA—THE NATIONALIST MOVEMENT 1858-1905 205 > p. 205