The Subsidiary Alliance system, introduced by Lord Wellesley in 1798, was one of the most important diplomatic strategies employed by the British East India Company to exert control over Indian states. The system was designed to create a network of dependencies, making it difficult for Indian rulers to resist British influence. Under this system, Indian rulers were required to:
The key idea behind the Subsidiary Alliance was that the British would protect the Indian ruler from external threats in exchange for control over their defense, diplomacy, and internal affairs. While this system was beneficial for the British, it significantly undermined the autonomy of the princely states and made them more susceptible to British manipulation.
Through the application of the Subsidiary Alliance, Wellesley was able to reduce the power of major regional powers like the Marathas and the Nizam of Hyderabad, thereby consolidating British power across India. Over time, the policy helped establish British suzerainty over most of India, as rulers became increasingly dependent on British protection. It was a crucial part of the British strategy of indirect rule, which ultimately led to the British Empire's dominance in India.
List-I (Name of account to be debited or credited, when shares are forfeited) | List-II (Amount to be debited or credited) |
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(A) Share Capital Account | (I) Debited with amount not received |
(B) Share Forfeited Account | (II) Credited with amount not received |
(C) Calls-in-arrears Account | (III) Credited with amount received towards share capital |
(D) Securities Premium Account | (IV) Debited with amount called up |