ABSTRACT
248 Naoroji wrote not only about a stifling of growth but also about a “drain” of wealth from India to Britain. This outflow, the profits of empire (what later economists would call “invisible”) derived form payments to British civil and military officials, who carried their wealth back to Britain; military expenses paid by India for operations outside the country; profits from British businesses sent to Britain; a trading relationship between India and Britain, distorted by British-imposed tariffs at both ends, in which Britain reaped the largest share of the profits; and miscellaneous hidden flows of wealth out of India for insurance premiums, interest payments, and so forth. (page 265)
