Theory:

The Road to Complete subordination
Having won numerous wars, the British thought of consolidating the Empire of the Company by bringing the rulers of the native powers under its umbrella. The ruthless generals of the British supported this idea of unified expansionary policy.
SUBSIDIARY ALLIANCE: This term was first uttered by the French governor Dupleix, where the British later introduced a policy under this name.
The Idea of Subsidiary Alliance:
  • The British Governor-general Lord Wellesley put it forward during his tenure between 1798 – 1805. He tried to control the Indian powers who lost their battle against the company forces.
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Lord Wellesley
 
  • It was a non-intervention policy dubbed by the British, where the states that accept this policy will be known as “Protected States”.
  • The British promised to defend the States under the policy in case of any attack from other foreign forces.
Provisions of the Subsidiary Alliance:
  • States entering into Subsidiary Alliance must disband their army and accept the forces of the BEIC.
  • A permanent British army would be stationed inside the accepting state’s territory, and a permanent representative of the BEIC will stay in the state’s capital.
 
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The Stationed British troops
  • Severing ties with all the other European forces and keeping them out of their territory.
  • Permission of the Governor-General is required to communicate with the adjacent state’s ruler.
  • Maintenance of the British army at the expense of the Indian ruler who is entering the agreement.
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This System of Subsidiary Alliance was seen as a declaration of subjugation by the Indian powers, who lost the entire control of their state, including the contact of foreign powers and their nearby rulers.
The British consolidation came full circle with the policy of the Subsidiary Alliance,by which they established their permanent empire in India.