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UPSC Prelims 2011 Q59: Indian Economy – International Trade & WTO

UPSC Prelims 2011, General Studies Paper I · Indian Economy

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:
  1. (a) 1 only
  2. (b) 1 and 2 only
  3. (c) 2 and 3 only
  4. (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.

FundVerdictReason
1. Funds for the India Office in LondonCorrectMaintaining the India Office in London was a standard component of Home Charges
2. Salaries/pensions of British personnel in IndiaCorrectPensions and furlough salaries of British officials, paid in England, were a major Home Charges component
3. Funds for waging wars outside India by the BritishIncorrectSuch 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:

PointDetail
IncludesIndia 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
SignificanceCore evidence in the economic drain theory (Dadabhai Naoroji et al.)

Answer: (b) 1 and 2 only.

Why each option is right or 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

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

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