With reference to the period of colonial rule in India, “Home Charges” formed an important part of the drain of wealth from India. Which of the following funds constituted “Home Charges”?1. Funds used to support the India Office in London.2. Funds used to pay salaries and pensions of British personnel engaged in India.3. Funds used for waging wars outside India by the British.Select the correct answer using the codes given below:
✓ Correct answer: b) 1 and 2 only
ExplanationDadabhai Naoroji in “Poverty and UnBritish Rule in India” (1901), propounded the Drain of Wealth Theory.It refers to the constant one way flow of wealth from India to England for which India got no return.Home Charges played a significant role in the Drain of Wealth from India.Statement 1 is correct: Funds used to support the India Office in London.Statement 2 is correct: Funds used to pay salaries and pensions of British personnel engaged in India.Statement 3 is incorrect: There are no clear references to using these funds for waging wars outside India by the British.Note: Here official answer given by UPSC is Option (b), However confusion withStatement 3 is understandable.226
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