How did Dadabhai Naoroji's drain theory support Indian nationalism?

Dadabhai Naoroji’s "Drain of Wealth" theory provided a critical economic foundation for Indian nationalism by challenging the legitimacy of British rule. By documenting how British policies—such as ruinous taxation, the depletion of domestic resources, and the transfer of income to England—impoverished India, Naoroji dismantled the imperialist claim that colonial rule brought prosperity to the subcontinent.123

This theory supported the nationalist movement in several key ways:

• Theoretical Justification: It offered a compelling argument that India’s widespread poverty and deadly famines were not natural occurrences but the direct result of systematic British exploitation and the annual plunder of gold, silver, and raw materials.12
• Political Mobilization: By framing the economic relationship between India and Britain as one of plunder, Naoroji and other Indian National Congress leaders provided a unifying grievance that helped mobilize public opinion against British imperialism.13
• Advocacy for Self-Rule: Naoroji argued that this economic drain could only be reversed through swaraj, or self-rule, thereby linking economic sovereignty directly to the broader political goal of independence.13