Grade 8 History
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The Subsidiary Alliance system was a method
started by Lord Wellesley to subjugate
(completely bring them under their control)
Indian powers without spending money on
fighting wars.
According to this system, any Indian ruler who
felt threatened by external attacks and internal
revolts, could take help from the English and
enter into an alliance (partnership) with them.
The English, would then take the responsibility of
protecting the ruler.
The Indian ruler had to accept certain terms and
conditions:
1. For the protection of the Indian ruler, British
troops would be permanently placed in the
territory of the subsidiary state.
2. The ruler would have to pay for the maintenance
of the troops.
3. He had to keep a British official at his court.
4. He could not employ other Europeans (except
English) in his service or remove those who
were already there.
5. He could not form an alliance (partnership) with
any other power without the permission of the
English.
This system proved very advantageous for the
English:
1. They maintained large armies at the
expense of the Indian rulers.
2. The English got valuable territories as
subsidiary payment, which led to the
expansion of the British empire in India and
an increase in its resources.
3. The influence of other European rivals was
removed from the courts of the Indian
rulers.
4. The English controlled the foreign policy of
the subsidiary states.
The Subsidiary Alliance had disastrous effects
for the Indian rulers:
1. The Indian rulers of subsidiary states lost
their independence. They became puppets in
the hands of the English.
2. The payment of huge subsidies (money) led
to a heavy drain (decrease) on their
resources.
3. The administration collapsed. The English
used this as an excuse to annex (attach) the
kingdom on grounds of mismanagement.
4. The rulers lost interest in the welfare of the
people.
This is because the Indian rulers were fully
protected by the English and they were no
longer afraid of revolts and attacks. The
people suffered under oppressive
(troublesome)rulers.
Awadh was a subsidiary state.
The Subsidiary Alliance which the Nawab of
Awadh had signed had protected the Nawab
from external invasions and internal rebellion.
 It made the Nawab unconcerned about the
affairs of the state.
 The payment of subsidies to the Company
exhausted the state treasury.
 When the administration was on the verge of
collapse, Dalhousie brought charges of
maladministration against the Nawab.
 Based on these charges, he deposed (remove
from office) the Nawab and annexed Awadh in
1856.
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