Subsidiary Alliance

The subsidiary alliance system was used by Lord Wellesley, who was governor-general from 1798-1805, to build an empire in India. Under the system, the allying Indian state’s ruler was compelled to accept the permanent stationing of a British force within his territory and to pay a subsidy for its maintenance. The Indian ruler had to agree to the posting of a British resident in his court. The Indian ruler could not employ any European in his service without the prior consultation with the Company. Nor could he go to war or negotiate with any other Indian ruler without consulting the governor-general. In return for all this, the British would defend the ruler from his enemies and adopt a policy of non- interference in the internal matters of the allied state.

One of the objectives behind Wellesley’s strengthening

of the subsidiary alliance system was to keep the French from reviving and expanding their influence in India. Around this time, the fear of Napoleon’s expedition towards the East was very real for the British who felt that the French could attack the western coast of India from their colony of Mauritius. Hence the clause in the alliance treaty requiring the Indian rulers to dismiss Europeans (other than the British) from their service and not employ any. By means of this system, the Company could station its forces at strategic locations and keep the French at bay. Besides, the subsidiary alliance would expand the Company’s hold over the Indian states and gradually bring more and more territory into the Company’s fold.

The Indian rulers lost their independence by buying security. They were not free of interference from the British Resident. They lost much of their revenue, paying for the British troops. Also, the alliance made the Indian rulers weak and irresponsible; the subjects were exploited and it was practically impossible to depose the oppressive rulers as they were protected by the British.