I believe he exaggerated. It’s just odd to not have thieves and crooks in any society. It certainly conveys his big picture sentiments.
“I have travelled across the length and breadth of India and I have not seen one person who is a beggar, who is a thief. Such wealth I have seen in this country, such high moral values, people of such caliber, that I do not think we would ever conquer this country, unless we break the very backbone of this nation, which is her spiritual and cultural heritage, and, therefore, I propose that we replace her old and ancient education system, her culture, for if the Indians think that all that is foreign and English is good and greater than their own, they will lose their selfesteem, their native culture and they will become what we want them, a truly dominated nation.”