Subsidiary Alliance System

Subsidiary Alliance System: The Subsidiary Alliance System was an arrangement believed to have been established between the British East India Company and Indian princely states, which marked a shift in power dynamics from Indian kingdoms to the British. This policy played a crucial role in the formation of the British Empire in India.

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During his tenure as the Governor-General of India from 1798 to 1805, Lord Wellesley promoted the concept of subsidiary alliances. The term itself was coined by Marquis Dupleix, a French Governor-General. The Nawab of Awadh was the first ruler to enter into a subsidiary alliance following the War of Buxar, while the Nizam of Hyderabad established the first significant subsidiary alliance.

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Definition of Subsidiary Alliance System

The Subsidiary Alliance System, introduced by Lord Wellesley, entailed an agreement between the British East India Company and the princely states of India. In exchange for protection, the princely states ceded their sovereignty to the British under this system.

Originator of Subsidiary Alliance System

Subsidiary Alliance System: The concept of the subsidiary alliance was initially developed by Governor Joseph Francois Dupleix of the French East India Company. However, it gained prominence under the tenure of Lord Wellesley, who, during his rule from 1798 to 1805, shifted from a policy of non-intervention to establishing subsidiary alliances. This strategic shift significantly bolstered British influence in India.

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Features of the Subsidiary Alliance System

Under the terms of the subsidiary alliance, the ruler of an Indian princely state had to allow a British military presence within their territory and provide financial support for the stationed troops. Additionally, the ruler had to disband their own military forces and permit British forces in their domain to form a subsidiary alliance.

The ruler was also responsible for funding the maintenance of the British troops. Failure to do so could result in the transfer of their land to the British. In return, the British pledged to safeguard the Indian state from external threats and internal uprisings, although this promise was often not upheld.

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The Indian state was prohibited from forming alliances with other foreign powers and was limited to employing Englishmen as foreign advisors. This policy aimed to diminish French influence. Ultimately, the Indian ruler’s authority over military and foreign affairs was greatly diminished, transforming them into a British “protectorate.” A British representative was also placed at the Indian court.

Stages of Subsidiary Alliances System

1. First Stage: The British offered a standing army to native leaders in exchange for a fixed capital payment.
2. Second Stage: The British agreed to maintain a permanent military force for their partner in return for an annual payment.
3. Third Stage: The British supported a smaller subsidiary force for their ally’s assistance within their borders, in exchange for a fixed annual payment.
4. Fourth and Last Stage: Lord Wellesley initiated the establishment of a constant and stationed subsidiary force within the partner’s territory.

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Advantages of Subsidiary Alliances 

• The British East India Company’s resources grew through the subsidiary system, allowing them to become the dominant force in India.
• Enhanced military power and influence were gained at the expense of local authority.
• Reduced risk of damage from wars, as conflicts were primarily fought within the allied states.

Disadvantages of Subsidiary Alliances

• Valuable territories and resources were progressively seized from original Indian rulers by the British.
• The financial burden of maintaining the subsidiary force fell on the original state’s inhabitants, leading to poverty.
• Unemployment increased due to surplus soldiers, causing disturbances and disruptions.
• Local rulers lost their authority, weakening Indian patriotism and facilitating British control.

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The Subsidiary Alliance System reshaped the power dynamics between Indian princely states and the British East India Company, altering the course of Indian history and influencing the growth of the British Empire in the region.