
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"?
Funds used to support the India Office in London.
Funds used to pay salaries and pensions of British personnel engaged in India.
Funds used for waging wars outside India by the British.
Select the correct answer using the codes given below:
Funds used to support the India Office in London.
Funds used to pay salaries and pensions of British personnel engaged in India.
Funds used for waging wars outside India by the British.
Select the correct answer using the codes given below:


Important Points to Remember in Chapter -1 - Economic Policy of British in India from Unique Academic Board History of India Solutions
Economic Policy of British in India
1. India was not only the market for the Britishers but also the source of raw materials for them. After getting established as imperialistic forces in India, the Britishers started to exploit the Indian economy and this exploitation was done through various ways like land tax, salt tax, excise duty, opium tax, etc. The adverse economic policy of Britishers in India has been thus called the ‘Drain Theory of Wealth’. Given below are the major sources of Income for Britishers.
2. Land Revenue
(i) It was one of the major sources of Income for the Britishers and a number of land reforms were done by the Britishers to increase the revenue without taking much accountability like Permanent Settlement, Ryotwari Settlement, Mahalwari Settlement, etc.
(ii) It was highly condemned by Indian thinkers like Dadabhai Naoroji, R.C Dutt, M G Ranade, GB Joshi, etc.
3. Salt tax
Britishers imposed taxes even on the consumption of basic goods like salt. And it was highly condemned by the early Congress leaders like D B Naoroji, G.B. Joshi, G.E Wacha, etc.
4. Opium
(i) Britishers are accused to have made the Indians addicted to Opium and Tea and finally collecting taxes on their uses.
(ii) Keshav Chandra Sen was the first Indian leader to raise his voice against it, gradually D B Naoroji addressed the Opium tax as a disguised tax.