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Summary
Modern Indian History Class 13

Treaty of Allahabad (5:05 PM)

  • Treaty of Allahabad and Bengal:
  • EIC got Diwani from Orissa, Bengal, and Bihar.
  • That is reveune adminstarion and reveunes of Bengal Suba.
  • Therefore for 1st time, EIC took over a sovereign function.
  • Therefore EIC got an additional source of income in form of revenues from the richest province of India.
  • The dual government (1765-72) of Bengal:
  • Legally Diwani (revenue administration) was given to EIC and Nizamat (non-revenue administration) with the Nawab of Bengal.
  • The policy of indirect rule was initiated in Bengal as Nawab of Bengal became a puppet of EIC as a British resident now stationed in court.
  • The British resident in 1772 became the actual centre of power.
  • EIC also got the right to appoint deputy Subadar, who headed Nizamat on behalf of Nawab.
  • Therefore through him EIC indirectly controlled Nizamat.
  • Therefore in practice, EIC got full control of Bengal, that is Diwani as well as Nizamat.
  • Legally dual government from 1765-72, practically EIC can rule legally in Diwani and indirectly in Nizamat but did not as EIC appointed Deputy Subadar Mohammad Reza Khan, who headed or ruled Nizamat on behalf of the nawab, also as Diwan of EIC.
  • Therefore Indian administration under the Indian deputy subadar continued till 1772.
  • The dual government was ended due to worsening law and order and warren hastings wanted to improve administration, therefore EIC established direct rule of its own in both Diwani and Nizamant in 1772.
  • Treaty of Allahabad and Awadh:
  • Shuja was made to pay 5 million rupees.
  • Shuja was now a puppet and a British resident could now be stationed in Awadh court.
  • The policy of a Ring fence was initiated by Clive but was associated mainly with Warren Hasting.
  • The policy of a Ring fence meant creating a buffer around the core interest regions of EIC by signing a military alliance with neighbours.
  • A military alliance was signed between Awadh and EIC.
  • Therefore now EIC could use Awadh military resources for the protection of EIC's interests in Bengal.
  • Awadh came under the military control of EIC as an EIC army stationed in Awadh permanently as it was to be paid for by Awadh in form of an annual subsidy.
  • Duty-free trade in Awadh.
  • Therefore Treaty of Allahabad with Awadh was a mini-subsidiary alliance.

Subsidiary Alliance/Subordinate Alliance (6:44 PM)

  • It was a policy initiated by Wellesley.
  • There was a ban on imperial expansion by the Pitts India act because of huge war expenditure by EIC.
  • Therefore British wanted to consolidate gains made from these wars and prevent war expenditure.
  • Therefore now EIC was to follow the policy of indirect rule and maintain the balance of power among Indian states.
  • Wellesley was an empire builder and had huge personal political ambitions in British polity.
  • He gave the policy of indirect rule & balance of power and reinitiated the policy of expansion.
  • He convinced the British government by overplaying the fear of Napoleon attacking India after aligning with Indian states like Mysore.
  • Napoleon attacked Egypt in 1798 to control middle-east and hurt British trade by dominating the Arabian sea.
  • He also had ambitions of re-establishing french influence over India and was in communications with Tipu.
  • However, there was no real threat of the french invading India and the British knew it.
  • Still, the government agreed to Wellesley as the primary goal of British foreign policy was to protect India from European rivals.
  • Wellesley found a middle path in form of a Subsidiary alliance that led to supremacy over Indian states without annexation.
  • The model treaty of Subsidiary alliance:
  • British protection to the Indian state against its neighbours and also against the internal threat of law and order instability.
  • For this EIC stationed its military permanently in the Indian state.
  • State to pay for maintenance of EIC army stationed in form of annual subsidy.
  • A British resident stationed in the court of an Indian ruler.
  • British consent was needed for stationing any Europeans in court.
  • Indian states must consult Governor General while negotiating with Indian rulers or foreign power.
  • The promise of non-interface by EIC in the internal affairs of the Indian states.
  • Impact of Subsidiary alliance on Indian states:
  • There was a drain of wealth in the form of subsidy to EIC and the subsidy was high.
  • EIC gradually increased the amount of subsidy demanded.
  • Now EIC could maintain a large army at expense of Indian states as money for this large army came in form of a subsidy.
  • At times Indian rulers gave the territory to EIC as payment of subsidy, for example in 1801 half of Awadh was given.
  • There was a loss of jobs for military men as the army of the Indian state was disbanded.
  • Indian ruler has to raise taxes to pay subsidies and that made him unpopular.
  • Peasants came under the oppression of high land revenue and this increased the chances of peasant revolts.
  • Indian rulers were accused of maladministration while they had no powers as the British did not respect the promise of non-interference in internal affairs and British resident established their indirect rule.
  • Indian states lost powers to settle border disputes with each other, therefore now could not unite as lost control of foreign policy.
  • They also lost the ability to self-defence as they had to disband their armies.
  • Hyderabad was the 1st to sign a subsidiary alliance in 1798 due to fear of Marathas and Mysore.
  • The significant territory of Mysore after the 4th Anglo-Mysore war in 1799 and Mysore signed a subsidiary alliance in 1799.
  • In 1801, Carnatic was annexed after the death of EIC ally Mohammad Ali in 1795.
  • In 1801, Awadh signed a subsidiary alliance, and half of Awadh was annexed as permanent payment of subsidy.
  • In 1802, Gaekwad of Baroda signed a subsidiary alliance in return for EIC's help in a succession dispute.
  • In 1803, Peshwa Baji Rao-II signed a subsidiary alliance in return for EIC's help to regain Peshwaship after he was removed by Holkar of Indore.
  • After the Defeat in the 2nd Anglo-Maratha war, Scindia of Gwalior signed a subsidiary alliance, and significant territory of Maratha Sardars annexed by EIC.
  • In 1805, Travancore signed a subsidiary alliance in return for military help to suppress a revolt by Nair troops due to low salary.
  • Wellesley was recalled in 1805 due to high war expenditure.

The topic of the next class: The anglo-Mysore war.