3. Charter Act, 1813

♤ This act did not bring about any significant changes in the administration of India.

♤ Continental System introduced by Napoleon led to restriction on British’s European trade. It forced British companies and merchants to diversify their trade away from Europe. Hence, they wanted end of East India Company’s monopoly over Indian trade. In this context, Charter Act ended Company’s monopoly in trade with India.

♤ However, trade in tea and trade with China remained exclusively with Company.

♤ It had a provision that Company should invest Rs. 1 Lakh every year on the education of Indians. However, this was not implemented in effect.

♤ It empowered local governments to impose taxes and punish for their non-payment subject to the jurisdiction of Supreme Court.