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The ‘Drain of Wealth’ debate is one of the most critical and controversial issues in the history of the Indian economy between 1700 and 2000. It primarily revolves around the economic exploitation of India under British colonial rule, particularly between the mid-18th and early 20th centuries. The concept refers to the unrequited transfer of resources and wealth from India to Britain without any economic return. The drain constituted a significant portion of colonial India’s economic history and played a major role in underdevelopment and poverty in the subcontinent. Multiple scholars, political leaders, and economists debated and analyzed the scale, nature, impact, and justification of the drain. The origins of the drain of wealth lie in the transformation of the British East India Company from a trading body into a sovereign power after the Battle of Plassey in 1757. Once the company began collecting revenue in Bengal and other regions, it started exporting a substantial amount of Indian resources and profits to Britain. Unlike earlier trade exchanges, where goods were bought with bullion or in exchange for Indian goods, the British now used Indian revenues to purchase Indian goods and _______ _____ ______ ________ ____.
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