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British Expansion Policy

Doctrine of lapse

The Doctrine of Lapse was an annexation policy followed widely by Lord Dalhousie when he was India’s Governor-General from 1848 to 1856.

  • According to this, any princely state under the direct or indirect (as a vassal) control of the East India Company where the ruler did not have a legal male heir would be annexed by the company
  • As per this, any adopted son of the Indian ruler could not be proclaimed as heir to the kingdom. This challenged the Indian ruler’s long-held authority to appoint an heir of their choice.

Wellesley’s policy of subsidiary alliance was an extension of ring fence—which sought to reduce states to a position of dependence on British Government in India. According to this system, every ruler in India had to accept to pay a subsidy to the British for the maintenance of British army. In return, British would protect them from their enemies which gave British enormous expansion.

French used to provide their troops for the rent purpose to the native Indian state. Dupleix was the first who lend European troops to the Indian state. Later it was adopted at a large scale by Lord Wellesley who started it to make sure that no state in India

Key features of Subsidiary Alliance

  • The allies of Indian state’s ruler were compelled to accept the permanent garrison of British Army within their territories and to pay a subsidy for its maintenance.
  • An Indian ruler entering into Subsidiary Alliance with the British had to dissolve his own armed forces.
  • He also had to pay for the British army’s maintenance.
  • In return, the British would protect the Indian state against any foreign attack or internal revolt.
  • The British promised non-interference in internal affairs of the Indian state but this was rarely kept.
  • The Indian state could not enter into any alliance with any other foreign power.
  • He could also not employ any other foreign nationals other than Englishmen in his service. And, if he were employing any, on the signing of the alliance, he had to terminate them from his service. The idea was to curb the influence of the French.
  • The Indian state could also not enter into any political connection with another Indian state without British approval.
  • The Indian ruler, thus, lost all powers in respect of foreign affairs and the military.
  • He virtually lost all his independence and became a British ‘protectorate’.
  • A British Resident was also stationed in the Indian Court.

Impact of policy and British Expansion

  • If a ruler failed to make the payment, a portion of his territory would be taken away and ceded to the British in the name of maintaining the troops.
    • This was the outcome in most cases, as rulers fell into arrears and a part of their territory was taken.
  • The subsidiary system was the Trojan horse tactics in empire building. It disarmed the Indian states and threw British protectorate over them.
  • The Governor General had proxy in every Indian state that accepted the subsidiary alliance.
    • Thus, it deprived the Indian princes of forming any confederacy against British.
  • It enabled the company to maintain a large standing army at the expense of Indian princes.
  • According to the Wellesley himself, “by the establishment of our subsidiary forces at Hyderabad and Poona, an efficient army of 22000 men are stationed within the territories or on the frontier of foreign states, and is paid by foreign subsidies. That army is constantly maintained in a state of perfect equipment, and is prepared for active service in any direction at the shortest notice” without any considerable increase to the permanent military expenses of the Government of India.”
  • The stationing of the company’s troops in the capitals of the Indian princes gave the English the control of the strategic and key positions in India without arousing the jealousy of other European nations.
  • The subsidiary system helped the company to effectively counteract any possible French moves in India. The company required the subsidiary ally to dismiss all Frenchmen from his service.
  • The British residents wielded considerable influence in the affairs of the Indian states. This placed great patronage into the hands of company’s authorities in India.
  • The Company acquired territories in full sovereignty from Indian statesand expanded their dominions in India
  • So, we can say that on one hand Subsidiary alliance helped company to reduce the threat of Napoleon/Frenchand on the other hand company could maintain a large army on the expenses of Indian states.

The native states, they virtually ceased to exist from the moment they became subsidiary to or protected by the Company. The conditions under which they were allowed to retain their apparent independence were at the same time, the conditions of permanent decay, and of an utter inability of improvement.

  • With the victory of the British in the Carnatic wars and more importantly in the Bengal battles began the process of their conquest of India. By 1765 the British had not become the virtual rulers of Bengal, Bihar and Orissa, but also begun to dictate terms to the Nawabs of both carnatic and Awadh. This was a gradual process by the end of which, all parts of India came under British control.

British conquest of India in stages:-

  • The British colonial rule in India is generally divided into three stages:

First stage(1757-1813) represents the mercantile phase

  • This ‘mercantilist’ phase was marked by direct plunder and the East India company’s monopoly trade functioning through the investment of surplus revenues in the purchase of Indian finished goods for export to England and Europe.
  • During the mercantile phase the aim of all activity was to accumulate wealth. In order to pursue a favourable trade, the British company started aggressive policies in India.
  • The government passed the Regulating Act  and the Pitt’s India Act to gain more and the direct control over the affairs of the company. The company officials transferred their fortunes acquired in India to England. The financial bleeding of India started with the British gaining hegemony over Indian territories.
  • New revenue settlements were imposed upon the agrarian structure.
  • They fought several wars, crushed many princely States and brought them under the colonial authority. Soon the mercantile phase came to an end.

Second stage(1813-1860) represents the free trade phase

  • By the dawn of the 19th century, the British became an industrial power following Industrial Revolution in England. It was in need of raw material to feed its industries. The emerging capitalist class found the Company a stumbling block for its market.
  • During this period, India was converted rapidly into a market for British textiles and a great source for raw materials. Traditional handicrafts were thrown out of gear
  • The Company’s monopoly in India was bitterly attacked by the British industrial community. Thus, the need for raw material and markets for the British manufactured goods resulted in the formulation of free trade policy towards India.
  • The special feature of this policy was that it was a one way traffic wherein British goods entered India virtually free while Indian products entering Britain faced high tariffs.
  • The protective policy towards British trade was thoroughly guarded, leaving India-made products to face stiff competition.
  • Revenue and expenditure policies of the Britishers were also exploitative in nature. Huge expenditure (expenditure on army, pensions and salaries of Englishmen, etc.) incurred by the British imperial power had been borne by Indians by paying high doses of taxes.

Third stage(1860 onwards ) represents the finance capital phase

  • During this phase, finance-imperialism began to entrench itself through the managing agency firms, export-import firms, exchange banks, and some export of capital.
  • Britain, of course, kept India as her most important colony where British capital could hope to maintain a haven. For her survival, Britain decided to make massive investments in various fields (rail, road, postal system, irrigation, European banking system, and a limited field of education, etc.) in India by plundering Indian capital. It is said that ‘railway construction’ laid the foundation for a new stage of colonial exploitation
  • With the opening up of the country, private capitalist investment from Britain came to India. But unfortunately, such British investment was not meant for India’s industrial development.
  • The basic motive behind such investment was the commercial penetration of India, its exploitation as a source of raw materials and markets for British manufactures.
  • This was, in fact, one of the principal contradictions of imperialism-colonialism in India.
  • Britain’s supremacy in the world economy for nearly 200 years lay in the utter neglect and plunder of her most important colony India. India’s economic life was redirected towards servicing the interests of British imperial power. Internal needs of the country were of no concern to the lone colonizer of the world.