The subsidiary alliance system was a policy of expansion used by the British. It was systematically implemented by Lord Wellesley, who was the Governor-General of India between 1798 and 1805. The major aim of the policy was the extension of British control over the Indian states and the reduction of French influence in India. According to this policy, Indian rulers were supposed to accept British soldiers permanently and have to maintain them through either paying cash or ceding some territory.
They were not allowed to conduct foreign diplomacy or enter into any war or hire other Europeans without the permission of the British government. Moreover, they were to have a British resident in their court. In return, they were to be protected by the British army. The 1st Indian state that accepted the alliance of Wellesley was Hyderabad (1798), followed by Mysore (1799), Awadh (1801) and the Peshwa (1802).
About the Subsidiary Alliance Treaty
- Though the initiation of the subsidiary alliance system was done by Lord Wellesley in a good manner, it was first introduced by the French Governor-General Dupleix.
- With the signing of the subsidiary alliance treaty, the Indian rulers had to do away with their armed forces and needed to accept the forces of the company in their territory.
- The kings had to pay for the maintenance of the British army and if they failed to make such maintenance, a portion of the territory was taken away and given to the British state.
- Against this, the East India Company has to protect the Indian state against any form of foreign attack or any internal revolt.
- Though the company under the treaty promised to follow the policy of non-interference in the internal affairs of native states, this was hardly followed.
- The Indian states were not allowed to enter alliances with any other foreign powers such as the French etc. They were also not allowed to employ any other foreign nationals other than Britishers.
- Indian states were also not allowed to enter any treaty with any other native states without the permission of the East India Company.
- Hence, the control and power of Indian rulers were lost concerning foreign affairs and the military, and the Indian rulers became the company's "protectorate".
Key Features
Under the Subsidiary Alliance system, the Indian ruler who is in question would be protected against any external attacks. In response to it, the rulers should:
- Post the company army in the capital of their state.
- They need to provide capital or territory for the maintenance of the troops.
- They were also required to expel other Europeans from the state, whether they were employed in the army or civil service.
- A European official was to be kept as a "resident". This meant, no direct correspondence is possible without the resident's approval, with other states.
Various Stages
- In the foremost stage of the treaty, the company asked for a fixed army from the native rulers in exchange for a fixed sum of money.
- In the next stage, the company kept a permanent military force in the states of the natives to assist the allies in exchange for an annual sum of money.
- In the third stage, the company asked to maintain a fixed subsidiary force and to keep the force within the boundaries of the allies.
- In the final stage, a fixed and permanent force was kept within the territories of their allied states.
Impact of Subsidiary Alliance System
- Due to the imposition of the subsidiary alliances treaty, the Indian rulers were disbanded and many people were rendered unemployed. Many of the Indian states have lost their independence and with time most parts of the Indian subcontinent came under the company rule.
- In case of failure to make the payment as promised, a portion of the territory was taken and ceded to the company, in the name of maintaining the troops.
- The treaty of Subsidiary alliances acted as "Trojan Horse Tactics" for empire building; which disarmed the Indian rulers and placed them under British protection.
- The governor-general appointed a representative in native states, which accepted the treaty. It helped the company to maintain a large standing army at the expense of the rulers.
- This gave the British control over key areas and strategic locations in India, and significantly increased their influence over the internal affairs of the Indian states. It also reduced the threat from the French forces.
States Signed the Treaty
- Nizam of Hyderabad : The first state to accept the subsidiary alliance was the Nizam of Hyderabad in 1798. The Nizam of Hyderabad ties were broken with the French that were signed in 1798 and allying with the Marathas was made illegal if permission from the British was not sought.
- Mysore and Nawab of Awadh : In the line Mysore became the second state which signed the treaty in the year 1799: and in 1801, Nawab of Awadh was forced to join the Subsidiary Alliance treaty with the company.
- Peshwa Baji Rao II : Peshwa Bajirao II used the subsidiary alliance system to consolidate his power, and by 1803, several Maratha states, such as the Scindias and Bhonsles, had accepted this policy. Even the last member of the confederation, the Holkars, eventually agreed to the terms of this policy.
- Treaty of Allahabad : In Awadh, Lord Clive adopted a treaty, resulting in the Treaty of Allahabad, in which the British promised to protect the Awadh region from its enemies. The company also forcibly assumed responsibility for maintaining troops in Gorakhpur, Rohilkhand, and the Doab region.
The Benefits of the Subsidiary Alliance System for the Company
There were many advantages of the subsidiary alliance with the Britishers. Some of the benefits are mentioned below:
- The influence of French was wiped out, as they would no longer be employed in the courts of the native rulers, which was a complete advantage for the Britishers;
- The treaty acted as a bridge between the native states, as most of the things were controlled by the Britishers under the subsidiary alliance.
- The sphere of influence was expanded, and due to the presence of British troops in their states, the local people became completely dependent on the British. Under the policy of the Subsidiary Alliance, they were reduced to the status of British "protectorates."
- The British had the advantage of maintaining a large military force at the expense of the native rulers, and they utilised the territories of the native rulers to their best advantage.
- Maintaining the subsidiary alliance policy was expensive and therefore placed a heavy financial burden on the local population; this forced the native states to cede most of their territories, which in turn helped the British increase their dominance in the country.
Disadvantages of Subsidiary Alliance System on the Native Rulers
The subsidiary alliance with time became a challenge for the native rulers. This can be pointed out from the following:
- The natives slowly lost most of the fertile lands and important locations to the British.
- The financial pressure resulting from the subsidiary alliance forced people to live in poverty, as the burden of maintaining the army fell directly on them.
- According to the policy, Britishers couldn't interfere in internal matters; however in reality they often interfered in every state matter.
- The position and prestige of the rulers gradually fell in the eyes of the masses whom they governed, eventually this led to the loss of their capacity and also personality to rule these states.
- Subjects of the state were also no longer in control of the matters and couldn't dethrone incompetent rulers because the British protected the allied rulers against internal and external forces.
Frequently Asked Questions (FAQs)
What was The Subsidiary Alliance system?
The Subsidiary Alliance system basically a treaty between the British East India Company and the Indian princely states, under the treaty the Indian states lost their sovereignty to the English.
Which state signed the subsidiary alliance treaty for the very first time?
The first state to accept the subsidiary alliance was the Nizam of Hyderabad in 1798.


