Consider the following statements: The most effective contribution made by Dadabhai Naoroji to the cause of Indian National Movement was that he<br/>1. Exposed the economic exploitation of India by the British.<br/>2. Interpreted the ancient Indian texts and restored the self-confidence of Indians.<br/>3. Stressed the need for eradication of all the social evils before anything else.<br/><br/>Which of the statements given above is/are correct?

1. Exposed the economic exploitation of India by the British — Correct. Dadabhai Naoroji’s biggest contribution was the Drain Theory, explained in Poverty and Un-British Rule in India, which exposed how British rule impoverished India.

2. Interpreted the ancient Indian texts and restored the self-confidence of Indians — Incorrect. This is associated more with figures like Swami Dayanand Saraswati and Swami Vivekananda, not Naoroji.

3. Stressed the need for eradication of all the social evils before anything else — Incorrect. Naoroji was primarily a moderate nationalist and economic critic of colonialism; this formulation fits social reformers more than him.

Therefore, only statement 1 is correct.