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Dadabhai Naoroji: The Grand Old Man of India

In July 1892, a 66-year-old Parsi from Bombay won a seat in London by just five votes. He became the first Indian elected to the British House of Commons. His name was Dadabhai Naoroji. He also proved, with numbers, that British rule was draining India’s wealth. This lesson tells his story.
Black and white portrait of Dadabhai Naoroji, an elderly man with a white beard and glasses, wearing a dark coat, resting his head on one hand
Dadabhai Naoroji in 1892, the year he entered the House of Commons. Photo: R.M. Richardson & Co, Wikimedia Commons, public domain.

Dadabhai Naoroji, at a glance

Four facts that clear up most exam questions

01

1825–1917

Born in Bombay on 4 September 1825. Died there on 30 June 1917.

02

First Indian MP

Won Central Finsbury, London, in 1892 as a Liberal.

03

Drain theory

Set out in full in “Poverty and Un-British Rule in India” (1901).

04

Congress president 3 times

1886, 1893 and 1906. His 1906 address called for swaraj.

Drain of wealthMoney and goods leaving India for Britain without a fair return.
Home ChargesMoney India paid to Britain for running its government and army.
SwarajSelf-rule. Indians governing India themselves.
ModeratesEarly Congress leaders who used petitions, speeches and reports, not protest.

Who was Dadabhai Naoroji?

Imagine one man who was a teacher, a businessman, an economist and a member of parliament. Now add three terms as Congress president. That man was Dadabhai Naoroji. Indians gave him a loving title: the “Grand Old Man of India”.

  • He was born on 4 September 1825 in Khadak, in Bombay’s old Native Town.
  • His family was Parsi, followers of the Zoroastrian faith.
  • He was trained as an Athornan, an ordained Zoroastrian priest (Dinyar Patel timeline).
  • He was one of the founders of the Indian National Congress in 1885.
  • He died in Bombay on 30 June 1917, aged 91 (South Asian Britain).
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1854

First Indian full professor at Elphinstone

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🚢
1855

Sails to London for Cama and Company

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1892

Elected MP for Central Finsbury

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1906

Calls for swaraj at Calcutta

Q1. True or False: Dadabhai Naoroji was one of the founders of the Indian National Congress.

What were his Bombay years?

Young Dadabhai was a bright student. In 1840 he entered the Elphinstone Institution, Bombay’s leading English school. He did so well that he stayed on to teach. Within a few years, he was also changing his own community.

  • In 1849, he and a dozen other Elphinstone students helped open six schools for girls (The India Forum).
  • In 1851, he co-founded the Rahnumai Mazdayasnan Sabha, a group to reform Parsi religious practice.
  • Also in 1851, he started Rast Goftar, a Gujarati reform paper. The name means “Truth-Teller”.
  • In 1854, he became a full professor of mathematics and natural philosophy at Elphinstone.
  • He was the first Indian to reach that rank there (Dinyar Patel timeline).

Natural philosophy was the old name for physics. So the future economist began life as a maths and science teacher.

Q2. True or False: Rast Goftar was an English-language newspaper started by Naoroji in London.

What happened in London?

In 1855, Naoroji left his teaching job and sailed for England. He went as a partner in a trading firm. London would become his second home, and his stage for speaking up for India.

  • He went as a partner in Cama and Company, the first Indian firm set up in Britain.
  • From 1856 to 1865, he was Professor of Gujarati at University College London (South Asian Britain).
  • In 1866, he founded the East India Association in London.
  • Its aim was to tell the British public about conditions in India. It also tried to win support for Indian welfare.
  • It is seen as a forerunner of the Indian National Congress (South Asian Britain).

For other early bodies like it, read Political Associations Before the Indian National Congress.

Q3. True or False: Naoroji founded the East India Association in Bombay in 1885.

What was the drain theory?

Many Britons said their rule made India richer. Naoroji did not just disagree. He gathered figures and did the sums himself. His answer was clear: India was getting poorer, and British rule was the reason.

He called this the drain of wealth. India’s wealth flowed out to Britain every year. Very little of it came back (Wikipedia).

How did the drain work?

He listed six causes. The main ones are below.

  • Foreign rule: India was run by a government from outside.
  • Home Charges: India paid Britain for its civil service and its army in India.
  • Empire wars: India bore the cost of building the empire, inside and outside its borders.
  • Salaries sent home: British officers earned high pay and took it out of India (Wikipedia).

Where did he write it down?

  • In 1876, he presented his papers called “Poverty of India”.
  • In 1901, he set out the full theory in “Poverty and Un-British Rule in India” (Dinyar Patel timeline).

Other thinkers, like R.C. Dutt, built on his work. Read Economic Critics of Colonialism and Economic Drain and Early Industry.

Q4. True or False: Home Charges were one of the channels of the drain in Naoroji’s theory.

How did he reach Parliament?

Naoroji believed Indians should argue their case inside Britain’s own Parliament. His first try failed. Then the Prime Minister himself mocked him. Six years later, Naoroji had the last word.

  • In 1886, he stood for the Liberal Party in Holborn, a Conservative stronghold. He lost.
  • Prime Minister Lord Salisbury then said Britain was not ready to elect a “black man” (Eastern Eye).
  • In July 1892, he won Central Finsbury in London as a Liberal.
  • His winning margin was just five votes (Liberal History).

What did he do as an MP?

  • He took his oath on the Khordeh Avesta, a Zoroastrian prayer book, not the Bible.
  • He spoke on Irish Home Rule and on the condition of Indians (Our Migration Story).
  • He lost the seat in the 1895 general election.
  • That same year, he was named to the Welby Commission, a Royal Commission on Indian spending.
  • He was the first Indian member of such a commission. He also gave evidence before it (The India Forum).

Q5. True or False: Naoroji won his seat in the House of Commons as a Conservative candidate.

How did he shape Congress?

Naoroji helped found the Congress in Bombay in 1885. He led it three times over twenty years. His last term came at a tense moment. The party was splitting between Moderates and Extremists.

  • 1886, Calcutta: president of the second session.
  • 1893, Lahore: president for the second time.
  • 1906, Calcutta: president for the third time, aged 81 (Dinyar Patel timeline).
  • In his 1906 address, he called for swaraj, or self-government (The India Forum).

Under his lead, an open split was avoided for the time being (Wikipedia). The break came the next year at Surat. Read The Surat Split, 1907. For every president, see Presidents of the Indian National Congress.

Q6. True or False: Naoroji presided over the 1906 Calcutta session of the Congress.

How is he remembered today?

In 1894, a young lawyer in South Africa wrote to Naoroji for advice. He asked for guidance “as from a father”. The lawyer was Mohandas Gandhi (The India Forum).

  • Naoroji’s book on poverty and un-British rule influenced Gandhi.
  • In 1904, he attended the International Socialist Congress at Amsterdam.
  • He left England in 1907 and retired in Bombay (Our Migration Story).
  • Dadabhai Naoroji Road in Mumbai carries his name. His statue stands on it.
Stone statue of Dadabhai Naoroji on a tall pedestal beside a street in Mumbai
Naoroji’s statue near Hutatma Chowk, Mumbai. Photo: DesiBoy101, Wikimedia Commons, CC BY 4.0.

The 200th birth anniversary

  • His 200th birth anniversary fell on 4 September 2025.
  • It was marked in India and at a reception for parliamentarians in London (Eastern Eye).

Remember this: Naoroji was born in Bombay in 1825 and died there in 1917. He started Rast Goftar in 1851. He became Elphinstone’s first Indian full professor in 1854. He founded the East India Association in London in 1866. His drain theory appeared in full in 1901. He won Central Finsbury in 1892 by five votes. He presided over the Congress in 1886, 1893 and 1906. In 1906 he called for swaraj.

Exam Angle

How have exams tested this?

  • NDA (II) 2017, Q56 asked which body Naoroji founded in London in 1866. The answer was the East India Association.
  • UPSC Prelims 2015, Q20 listed Naoroji, G. Subramania Iyer and R.C. Dutt. All three were economic critics of colonialism.
  • CAPF 2017, Q6 asked about his idea that the drain took away a surplus India could have invested.
  • Trap 1: “The East India Association was founded in India.” Wrong. It was founded in London, in 1866.
  • Trap 2: “Naoroji was a Conservative MP.” Wrong. He won as a Liberal.
  • Trap 3: “Poverty and Un-British Rule in India came out in 1876.” Wrong. 1876 was the “Poverty of India” papers. The book came in 1901.

Quick Q&A

Who is called the Grand Old Man of India?

Dadabhai Naoroji.

Which seat did Naoroji win in 1892?

Central Finsbury, in London.

Which book set out the drain theory in full?

“Poverty and Un-British Rule in India” (1901).

On which book did Naoroji take his oath as an MP?

The Khordeh Avesta.

At which session did he call for swaraj?

The 1906 Calcutta session of the Congress.

0 / 6 correct

MCQ on Dadabhai Naoroji

5 verified questions from this lesson.

Question 1 of 5

Arrange the following events in Dadabhai Naoroji’s life in chronological order, earliest first:

1. Founding of the East India Association

2. Launch of Rast Goftar

3. Election to the House of Commons

4. Publication of “Poverty and Un-British Rule in India”

More questions on Dadabhai Naoroji:

Question 1 of 1

In 1892, Dadabhai Naoroji became the first Indian to achieve which political milestone?

Question 1 of 1

Dadabhai Naoroji founded the East India Association in London in 1866 with which primary purpose?

Question 1 of 1

Who of the following was/were economic critic/critics of colonialism in India?

1. Dadabhai Naoroji

2. G. Subramania Iyer

3. R. C. Dutt

Question 1 of 1

In which 1901 book did Dadabhai Naoroji set out his Drain of Wealth theory in full?

Question 1 of 1

At its December 1906 Calcutta session, presided over by Dadabhai Naoroji, the Indian National Congress passed four linked resolutions together.

Which set of four?

Question 1 of 1

Statement I: Dadabhai Naoroji argued that what was being drained out was ‘potential surplus’ that could generate more economic development in India if invested in India. Statement II: Imperialists believed that India was brought into the large capitalist world market and that was in itself a progress towards modernization.
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