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The East India Company’s
territories in the 1850s
 East India Company’s expansion policy
East India Company adopted 2 methods to expand
territories in India:

1. Annexation by war.

2. Annexation by diplomacy and administrative

control.
 Diplomatic and Administrative Policies
1. Policy of Ring Fence – Warren Hastings 1772-85

2. Subsidiary Alliance – Richard Wellesley 1798-1805

3. Doctrine of Lapse – Dalhousie 1848-56

 The Policy of Ring Fence
• After Carnatic Wars and Plassey (1757), East India Company
faced the triple threat of Marathas, Nizam, and Haider Ali.

• Ring fence = buffer zones to defend EIC’s borders.

EIC would offer to defend their neighbouring kingdoms, in

order to save the EIC territories from attack.
Awadh – Buffer state to protect Bengal
Presidency from Maratha and Afghan
invasions.

Treaty of Allahabad (1865) – Offensive and

defensive alliance with Awadh.
EIC would station troops in Awadh for its
defence.

Nawab Shuja ud-Daulah would pay for the

maintenance of the troops.
The policy of buffer
states evolved and
gave rise to the
system of Subsidiary
Alliance.
 System of Subsidiary Alliance
• By 1797, the two strongest Indian powers, Mysore and the
Marathas, had declined in power.

• Expansion was Profitable- more area for raw materials and

trade.

• Governor General Richard Wellesley now developed the

system of Subsidiary Alliance.
 Under the system of Subsidiary Alliance
• Indian states were called the protected states &
EIC – the paramount power.

• British were to save Indian states from external aggression in return

of money/Part of territory to support subsidiary troops.

• States had to cut off their relations from any other European power
(mainly French).

• Forbidden to make new political connections even with Indian states

without British Permission.
The native ruler had to maintain a contingent of
EIC’s British troops in his territory commanded by
British officers.
• States were also to disband their army.

• Keep a British resident at their court.

• States were also forbidden to employ any other Europeans

in their court / service without British permission.

• British would not interfere in internal affairs of protected

states.

• First alliance was made with Nizam of Hyderabad.

In reality, by signing a Subsidiary Alliance, an India princely state
virtually signed away−

• Its independence;
• The right to self-defence;
• Maintaining diplomatic relations;
• Employing foreign experts; and
• Settling its disputes with its neighbours.

Unforeseen effect - Unemployed Soldiers joined/became Pindaris

and harassed many states.
Stages of Subsidiary Alliance
First Stage – EIC offer to help native state with troops, in war
against another native state.

Second Stage – Common cause with the native state; EIC troops
would fight alongside the native state’s troops.

Third Stage – Permanent troops stationed in the native state, for its
‘protection’. Native ruler to pay fees for it.

Fourth Stage – When the native state failed to pay the high fees, it
was asked to cede territories.
Timeline of the Subsidiary Alliance
1765 - Treaty of Allahabad with Awadh was a precursor to
S.A.

1798 - Nizam of Hyderabad was the first to sign.

1799 – Tanjore, Surat.

1799 - Mysore.

1801 - Awadh – annexation of Rohilkhand.

1801- Arcot annexed.

1802- Gaekwad, Peshwa.

1803- Scindia and Bhonsle.

1810s- All Rajput states of Rajasthan.

1818 – Holkars.
India in 1805
Blue – Subsidiary allies.

Pink – Area under direct EIC rule

(annexed).
Merits of Subsidiary Alliance
By this system the English became the supreme/Paramount power
in India.

The resources and influence of the company increased greatly.

The alliances helped the English maintain control over other Indian
rulers.

It enabled the company to maintain a large standing army at the

expense of Indian Princes.

The extent of British Empire in India increased greatly as several

rulers had ceded parts of their kingdoms.
Demerits of Subsidiary Alliance
• The native rulers lost their prestige and dignity.

• The subsidy demanded from the Indian rulers was beyond their means and
they could not afford it - they taxed their people heavily.

• The Indian rulers were compelled to disband their own armies –Pindari
scourge.
• The local rulers lived a life of irresponsibility and degradation because they
considered that their security was now British concern.

• Though not allowed to wage war with each other directly, they kept plotting
and intriguing against one another.
 The Doctrine of Lapse
• Ancient Indian tradition of adopting a male child from extended
royal family in case the king was childless.

• The policy of lapse was based on difference in principle between the

right to inherit property & right to govern.

• Adopted son of any native ruler would inherit private property only.

Not automatic heir to the throne of the foster parent (native ruler).

Upto the ‘paramount power’ (EIC) to decide whether kingdom

would go to adopted son or be annexed by EIC.
• EIC called it to be based on Hindu law of succession
and Indian traditions.

• Annexed states were monitored by chief

commissioners with introduction of centralized
control called non-regulation system for modern
centralized states.
 Reasons for aggressive acquisition
• Strategic: Imperial defense + ending the misrule of
Princes to win goodwill of people.

• Commercial: source of raw material, new markets for

manufactured goods.
List of states annexed through Doctrine of Lapse:
• Satara (1848)

• Jaitpur & Sambhalpur (1849)

• Baghat (1850)

• Udaipur (1852)

• Jhansi (1854)

• Nagpur (1854)
“His territorial acquisition
transformed the map of India.
Had he not acquired these
territories then many
more Hyderabad, Jamnagar
and Kashmir like crisis would
have happened in those areas,
immediately after freedom in
1947’’
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