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Sir John Shore (1793-98) succeeded Cornwallis as Governor General and his administration was 
uneventful. He adopted neutral policy and created a kind of political unrest in India and greatly 
affected the prestige of the English. 
Lord Wellesly (1798 -1805) 
Lord Wellesley was the Governor-General of Bengal from 1798 – 1805. Preservation of British 
prestige and removal of French danger (Napoleon attack) from India were Wellesley’s twin aims. 
His aim and forward policy was to make ‘the British Empire in India’ into ‘the British Empire of 
India’. He adopted several policies to turn the English East India Company from a trading 
corporation into a supreme power in India. He adopted three methods to expand the British 
Empire. 
They were: 
? Subsidiary Alliance System 
? Wars and conquests  
? Annexation of territories 
The Subsidiary Alliance System 
The Indian rulers were persuaded by Wellesley to sign 
a friendly treaty with the English. The States in turn 
had to follow certain conditions. 
? The States had to accept the English as their 
Supreme Power 
? A British Resident and British subsidiary forces 
were to be stationed inside the State 
? They had to cede territories to the company for 
the maintenance of subsidiary force or money 
? They should not entertain any other Europeans, 
other than the English 
  
MODERN INDIAN HISTORY
 
   
 
BRITISH RULE
 
 
Page 2


 
   
 
  
 
Sir John Shore (1793-98) succeeded Cornwallis as Governor General and his administration was 
uneventful. He adopted neutral policy and created a kind of political unrest in India and greatly 
affected the prestige of the English. 
Lord Wellesly (1798 -1805) 
Lord Wellesley was the Governor-General of Bengal from 1798 – 1805. Preservation of British 
prestige and removal of French danger (Napoleon attack) from India were Wellesley’s twin aims. 
His aim and forward policy was to make ‘the British Empire in India’ into ‘the British Empire of 
India’. He adopted several policies to turn the English East India Company from a trading 
corporation into a supreme power in India. He adopted three methods to expand the British 
Empire. 
They were: 
? Subsidiary Alliance System 
? Wars and conquests  
? Annexation of territories 
The Subsidiary Alliance System 
The Indian rulers were persuaded by Wellesley to sign 
a friendly treaty with the English. The States in turn 
had to follow certain conditions. 
? The States had to accept the English as their 
Supreme Power 
? A British Resident and British subsidiary forces 
were to be stationed inside the State 
? They had to cede territories to the company for 
the maintenance of subsidiary force or money 
? They should not entertain any other Europeans, 
other than the English 
  
MODERN INDIAN HISTORY
 
   
 
BRITISH RULE
 
 
 
   
 
? The States were not allowed to negotiate with any other kingdom without the permission 
of the Governor-General 
In return, the English promised them protection against any external attacks and non-interference 
in their internal matters. The British dominions in India increased highly by adopting the 
Subsidiary Alliance system of Wellesley and is shown in the map below 
 
 
 
 
 
 
 
 
 
 
Benefits to the British 
Wellesley’s Subsidiary System is regarded as one of the masterstrokes of British imperialism and 
it offered the following benefits to the British EIC. 
? By this system the English became the supreme power in India 
? The resources and influence of the company increased greatly 
? The alliance helped the English to maintain control over the 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. 
Under the system, expansion of British power became easy. Thus Wellesley’s diplomacy made 
the British the paramount power in India. 
What happened to Indian States? 
The condition of Indian states got worsened as the Kings army was disbanded and British power 
increased. The various demerits related with the system can be listed as 
Page 3


 
   
 
  
 
Sir John Shore (1793-98) succeeded Cornwallis as Governor General and his administration was 
uneventful. He adopted neutral policy and created a kind of political unrest in India and greatly 
affected the prestige of the English. 
Lord Wellesly (1798 -1805) 
Lord Wellesley was the Governor-General of Bengal from 1798 – 1805. Preservation of British 
prestige and removal of French danger (Napoleon attack) from India were Wellesley’s twin aims. 
His aim and forward policy was to make ‘the British Empire in India’ into ‘the British Empire of 
India’. He adopted several policies to turn the English East India Company from a trading 
corporation into a supreme power in India. He adopted three methods to expand the British 
Empire. 
They were: 
? Subsidiary Alliance System 
? Wars and conquests  
? Annexation of territories 
The Subsidiary Alliance System 
The Indian rulers were persuaded by Wellesley to sign 
a friendly treaty with the English. The States in turn 
had to follow certain conditions. 
? The States had to accept the English as their 
Supreme Power 
? A British Resident and British subsidiary forces 
were to be stationed inside the State 
? They had to cede territories to the company for 
the maintenance of subsidiary force or money 
? They should not entertain any other Europeans, 
other than the English 
  
MODERN INDIAN HISTORY
 
   
 
BRITISH RULE
 
 
 
   
 
? The States were not allowed to negotiate with any other kingdom without the permission 
of the Governor-General 
In return, the English promised them protection against any external attacks and non-interference 
in their internal matters. The British dominions in India increased highly by adopting the 
Subsidiary Alliance system of Wellesley and is shown in the map below 
 
 
 
 
 
 
 
 
 
 
Benefits to the British 
Wellesley’s Subsidiary System is regarded as one of the masterstrokes of British imperialism and 
it offered the following benefits to the British EIC. 
? By this system the English became the supreme power in India 
? The resources and influence of the company increased greatly 
? The alliance helped the English to maintain control over the 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. 
Under the system, expansion of British power became easy. Thus Wellesley’s diplomacy made 
the British the paramount power in India. 
What happened to Indian States? 
The condition of Indian states got worsened as the Kings army was disbanded and British power 
increased. The various demerits related with the system can be listed as 
 
   
 
? The native rulers lost their prestige and dignity, 
? Large subsidy demanded led to heavy taxation 
? The Indian rulers were compelled to disband their own armies.  
? Unemployment and disbanded soldiers, in course of time, joined robber gangs such as 
Thugs and Pindaris  
? The local rulers lived a life of irresponsibility and degradation 
? Anarchy and misrule in several states had resulted in their annexation by the British. 
Enforcement of the Subsidiary System 
? Hyderabad: Hyderabad was the first state which was brought under Wellesley’s Subsidiary 
System in 1798. It fixed the amount to be paid annually at Rs.24 lakhs for the subsidiary 
force. Nizam could not pay the annual fee and in 1800 Nizam handed over the territories 
of Cuddappah, Bellary, Anantapur and Carnool. 
? Oudh: The threat of invasion of Afghanistan ruler was the pretext for Wellesley to force 
the Nawab of Oudh to enter into a subsidiary treaty. Accordingly, the Nawab gave the 
British the rich lands of Rohilkhand, the lower Doab and Gorakhpur. 
? Maratha Peshwa Baji Rao II and many Rajput rulers also entered into this alliance. 
? After the death of Tippu Sultan in 1799, his kingdom was handed over to Krishna Raja 
Wadiar who accepted the scheme 
The Fourth Mysore War (1799) 
The Treaty of Srirangapatinam failed to bring peace between Tippu and the English. Tippu refused 
to accept the subsidiary alliance of Lord Wellesley. He wanted to take revenge on the English. He 
sent emissaries to Kabul, Constantinople, Arabia and France to get their support. When Wellesley 
came to know all about Tippu’s activities, he declared war at once against him in 1799. Tippu 
suffered defeats and fought bravely but died in the battle. 
The English annexed large portions of Mysore. The central part of Mysore was given to Krishna 
Raja of Wadiar dynasty who signed Subsidiary Alliance treaty. 
 
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