The Grand Old Man of India gave drain wealth theory.
The "drain of wealth" depicts the constant flow of wealth from India to England for which India did not get an adequate economic, commercial or material return.
The colonial government was utilizing Indian resources- revenues, agriculture, and industry not for developing India but for its utilization in Britain.
In this theory, he mentioned that the wealth that was being drained out was a potential surplus, that could generate moreeconomic development in India if invested in India. Hence statement I is correct.
He also mentioned it in his book Poverty and Un-British rule in India.
During the British Rule, many imperialists believed that if India comes into large capitalist’s world, then this will take India towardsmodernization. Hence statement II is correct.