Subsidiary Alliance

Notes

The Subsidiary Alliance was a system of indirect control over Indian states, perfected by Lord Wellesley (Governor-General, 1798-1805), though the idea was used earlier by Dupleix. It allowed the Company to maintain a large army at the cost of Indian rulers and to keep out the French.

Terms

The Indian ruler accepted a permanent British force in his territory and paid a subsidy for it, in cash or by ceding territory.
A British Resident was stationed at his court.
The ruler could not employ other Europeans, especially the French, without British consent.
He could not declare war or negotiate with other states without British permission; the Company would arbitrate disputes.
In return the Company promised to protect him from external attack and internal disorder and not to interfere in internal affairs (a promise it did not keep).

States that accepted

Hyderabad (1798): the first (the Nizam; the final treaty in 1800 ceded Bellary and Cuddapah); the Hyderabad Contingent.
Mysore (1799) after Tipu's defeat; Tanjore (1799).
Awadh (1801): ceded Rohilkhand, Gorakhpur and the lower Doab.
Peshwa Baji Rao II (Treaty of Bassein, 1802): led to the Second Maratha War.
Bhonsle of Berar (Treaty of Deogaon, 1803) and Scindia (Treaty of Surji-Arjungaon, 1804) after defeat.
Also Jodhpur, Jaipur, Macheri, Bundi and Bharatpur; Holkar accepted later (Treaty of Mandsaur, 1818). Ranjit Singh never accepted it.

Impact

On the British: a large army maintained at others' expense; French influence removed; Company became the paramount power; control over the states' foreign relations.
On Indian states: loss of sovereignty, disbanded armies (unemployment, discontent), financial burden of the subsidy, loss of territory, and misrule as rulers relied on British force.

Key Points

Wellesley (1798-1805); idea earlier used by Dupleix.
Permanent army, subsidy, Resident; no other Europeans; no war without consent.
Hyderabad first (1798); Mysore, Tanjore, Awadh, Peshwa (1802) followed.
Ranjit Singh did not accept it.
Result: loss of sovereignty of states; British paramountcy.

MCQs

Q1. The first Indian state to accept the Subsidiary Alliance was: (a) Mysore (b) Awadh (c) Hyderabad (d) The Peshwa Ans: (c). 1798.

Q2. The Treaty of Bassein (1802) was signed by: (a) Scindia (b) Peshwa Baji Rao II (c) Holkar (d) Bhonsle Ans: (b). He accepted the Subsidiary Alliance.

Q3. Which of the following was NOT a condition of the Subsidiary Alliance? (a) A British Resident at the ruler's court (b) Payment of subsidy (c) Freedom to employ French officers (d) A permanent British force Ans: (c). Rulers could not employ other Europeans without consent.