User:Purnimadhiver/sandbox

Drain of wealth during British raj and during this period also citizens has faced  such kinds of problems. The constant flow of wealth from India to England for which India did not get an adequate economic, commercial or material return has been described by Indian national leaders and economists as 'drain' of wealth from India. The drain of wealth was interpreted as an indirect tribute extracted by imperial Britain from India year after year. Concept of Economic Drain:. In the 50 years before the battle of Plassey, the East India Company had imported bullion worth £ 20 million into India to balance the exports over imports from India.. England. Apart from other measures, in 1720 the British government forbade the wear or use of Indian silks and calicoes in England on pain of a penalty of £ 5 for each offence on the weaver and of £ 20 on the seller. After Plassey the situation was reversed and the drain of wealth took an outward as England gradually acquired monopolistic control over the Indian economy. Constituents of Economic Drain: India’s capital and wealth was being transferred or drained to the England in the form of salaries and pensions of britishers civil and military officials working in India, interest on loans taken by the Indian government, profits of  British capitalists in  India , India had been facing difficulties Indian people was manifested  through a number of facts such as the low national income of the country ,the low import and low export ,low revenue returns of the government Dividend to the shareholders of the East India Company: The Charter Act of 1833 provided for an annual dividend of £ 630,000 to be paid to the shareholders of the Company out of the Indian revenues till 1874. In 1874 the loan of £ 4.5 million was raised to redeem the stock at a premium of 100%. 21st centuries drain of wealth In an address to the Congress parliamentary party on Dec. 8, Union Finance Minister Pranab Mukherjee lamented that the UPA coalition was forced to suspend the cabinet decision to allow 51% foreign direct investment in multi-brand retail (like Wal-Mart, Tesco) , the middle class is waking up to the grim reality of the economic downturn, with vanishing jobs and opportunities, shrinking pay packages, and a government indifferent to its plight. As for jobs – the foundation of family security – government extends huge loans from public sector banks to private corporate that do not provide permanent jobs to the millions who toil for them. Recall how a highly successful airline shut the doors on hundreds of new recruits on outrage forced government to intervene and resolve the crisis Big Retail will eliminate 44 million local retailers to establish monopoly power; buy at the lowest prices and sell at the highest; in short, emerge as sole ‘middleman.’ Thus, Indian retailers will lose their livelihoods and foreign retailers will take the profits home to their own countries!