RegdNo.

323101855
Assignment No. 2

Course Code: EHIS507 Registration Number:

Instructions:
a. Attempt all questions given below in your own handwriting. Assignment in typed format will not
be considered for evaluation.
b. The student has to complete the assignment in the allocated pages only. Any other page in case
utilized shall not be considered.

Q1. What was the economic critique of colonialism? Discuss Drain of Wealth theory of Dadabhai
Naroji.

The economic critique of colonialism centered around the exploitation and impoverishment of
colonized nations by colonial powers. One prominent theory in this regard is the "Drain of
Wealth" theory proposed by Dadabhai Naoroji, an Indian scholar, and political leader in the late
19th century.
According to Naoroji's Drain of Wealth theory, colonialism resulted in the systematic siphoning
off of wealth and resources from the colonized countries to the colonial powers. He argued that
the economic relationship between the colonizer and the colonized was inherently unequal, with
the colonizers extracting vast amounts of wealth from the colonies for their own benefit. This
wealth drain occurred through various means, including the imposition of heavy taxes, unequal
trade practices, and the repatriation of profits by foreign-owned businesses.
Naoroji's theory highlighted how colonialism led to economic stagnation and poverty in the
colonized nations while enriching the colonial powers. He called for a more equitable economic
relationship between colonizers and their colonies, emphasizing the need for fair trade practices,
reduced exploitation, and reinvestment of wealth within the colonies to promote their economic
development.
In summary, the Drain of Wealth theory of Dadabhai Naoroji was a significant economic critique
of colonialism, shedding light on the economic injustices and imbalances inherent in colonial rule
and advocating for a more just and equitable economic arrangement between colonized and
colonial powers.

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 RegdNo. 323101855
Assignment No. 2
Course Code: EHIS507 Registration Number:
Instructions:
a. Attempt all questions given below in your own handwriting. Assignment in typed format will not
be considered for evaluation.
b. The student has to complete the assignment in the allocated pages only. Any other page in case
utilized shall not be considered.

Q2. Explain the deindustrialization? Discuss the latest debates around the idea of
deindustrialization in British India.

Deindustrialization refers to the process of a significant decline in the industrial sector's

contribution to a country's economy. This typically involves a reduction in the number of
industrial jobs, the shuttering of factories, and a shift towards a more service-oriented or agrarian
economy. Deindustrialization can be caused by various factors, including technological
advancements, changes in global trade patterns, economic policies, and historical events.

In the context of British India, deindustrialization was a complex and contentious issue during the
colonial period. The British East India Company and later the British Crown pursued economic
policies that prioritized the export of raw materials from India and the import of British
manufactured goods, effectively undermining India's indigenous industries. This policy, known
as the Drain of Wealth, had a devastating impact on India's traditional textile and handicraft
industries, which were once among the world's most significant producers.

The latest debates around deindustrialization in British India center on its long-term
consequences and the extent to which it contributed to India's economic underdevelopment.
Some historians argue that deindustrialization left a lasting legacy of poverty and dependence on
agriculture in India. They contend that the decline of indigenous industries under British rule
hindered India's industrialization process, setting the stage for its later economic challenges.

Others, however, point out that deindustrialization was not the sole factor responsible for India's
economic struggles and that it occurred alongside other complex historical developments. These
debates often revolve around questions of agency, as some historians emphasize the role of
Indian elites and economic structures in shaping the country's economic trajectory.

In conclusion, deindustrialization in British India is a multifaceted historical issue that continues

to spark debates among scholars. While it is clear that the decline of indigenous industries had
significant consequences, the extent to which it shaped India's economic destiny remains a topic
of ongoing discussion and research. Understanding the complexities of deindustrialization is
crucial for comprehending the economic and social dynamics that have shaped modern India.
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 RegdNo. 323101855
Assignment No. 2

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