UPSC Prelims 2011 Q59: Indian Economy – International Trade & WTO
With reference to the period of colonial rule in India, "Home Charges" formed an important
part of 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:
- (a) 1 only
- (b) 1 and 2 only
- (c) 2 and 3 only
- (d) 1, 2 and 3
Answer: (b) 1 and 2 only
Explanation
What made up "Home Charges" under colonial rule
Home Charges were payments India had to bear in England, a key part of the colonial drain of wealth.
| Fund | Verdict | Reason |
|---|---|---|
| 1. Funds for the India Office in London | Correct | Maintaining the India Office in London was a standard component of Home Charges |
| 2. Salaries/pensions of British personnel in India | Correct | Pensions and furlough salaries of British officials, paid in England, were a major Home Charges component |
| 3. Funds for waging wars outside India by the British | Incorrect | Such costs, when charged to India, are usually discussed as a separate drain-of-wealth grievance, not as a standard listed component of 'Home Charges' itself |
Home Charges components:
| Point | Detail |
|---|---|
| Includes | India Office costs, British personnel pensions/salaries, interest on India-related debt in England, stores bought in England |
| Excludes (here) | Wars outside India — a separate point of grievance, not part of the standard Home Charges list |
| Significance | Core evidence in the economic drain theory (Dadabhai Naoroji et al.) |
Answer: (b) 1 and 2 only.
Why each option is right or wrong
- (a) Incorrect. Fund 2 (salaries/pensions of British personnel) is also a Home Charges component, so '1 only' is incomplete.
- (b) CORRECT. India Office costs and British personnel salaries/pensions are the standard Home Charges components; war funding outside India is not part of this specific list.
- (c) Incorrect. Fund 1 (India Office) is also correct, so leaving it out is wrong.
- (d) Incorrect. Fund 3's war-funding claim is not a standard listed component of Home Charges, so 'all three' is wrong.
Key point
'Home Charges' standardly comprised India Office costs in London AND salaries/pensions of British personnel — NOT funds for Britain's wars outside India, which is a separate drain-of-wealth grievance.
Remember
Home Charges: India Office costs + British personnel salaries/pensions — not funding for wars outside India.
Common mistakes
- Lumping all colonial financial grievances (including war funding) into the specific 'Home Charges' category.
- Not knowing the India Office itself was a standard Home Charges item.
- Missing that Home Charges primarily covered England-based administrative and personnel costs.
Exam tip
Home Charges = India Office + British personnel pay/pensions (paid in England). War funding abroad is a separate drain-of-wealth issue, not part of this specific term.
Sources
- Bipan Chandra — Modern India (NCERT textbook for Class XII)
- Dadabhai Naoroji — Poverty and Un-British Rule in India (Swan Sonnenschein, 1901)