SUBSIDIARY ALLIANCE: A BRIEF

The Nizam of Hyderabad had deserted the British camp after his defeat by the Marathas at
Kharda in March 1795.He was providing training to his troops under the supervision of a French
Officer named Raymond. The Marathas after their victory against the Nizam were increasing
their power and influence. The Maratha "chief Daulat Rao Sindhia was drilling his troops under
a French General named Perron. Tipu Sultan of Mysore was carrying on negotiation with the
French Governors of Mauritius and Reunion in order to get military help against the English in
India. To counter act the growth of French influence in the court of native princes and to bring
the Indian states within the orbit of British political power Lord Wellesley followed the System
of Subsidiary Alliance. This system helped the company in the expansion of its dominions.
According to Sir Alfred Lyall there were four stages in the evolution of the system of subsidiary
alliance. In the first stage the English company under took to lend military contingent to help an
Indian prince in his wars. Governor General Warren Hastings had lent British troops to Nawab
Suja- ud-daulah of Oudh to fight against the Rohilas.In the second stage the English company
took the field on its own account with the help of an Indian ally who made common cause with
him. In the third stage the company asked its Indian ally to pay money to raise, train and equipe
army, for the defence of his state.In 1797 Holm Shore had made such an arrangement with the
Nawab of Oudh. A similar agreement was concluded by Lord Wellesley with the Nizam of
Hyderabad in 1798.In the final stage the company guaranteed protection to the territories of an
Indian alley. Accordingly Subsidiary force was maintained on the soil of that state. The Indian
ruler was asked to surrender to the company a part of his territory. So that out of its revenue the
expenses of the subsidiary force were to be met. Such a treaty was concluded with the Nizam of
Hyderabad in i800 A.D.The French Governor Duplex began the system of lending European
troops to Indian, princes at the expense of the later. The English also followed this practice. In
1765 the East India Company had concluded a treaty with the Nawab of Oudh. Accordingly the
company undertook to defend the frontiers of Oudh and the Nawab agreed defrays the war
expenses. However it was Lord Wellesley who elaborated and perfected the system of Subsidiary
alliances.1

1
A Short History of the Expansion of British Empire(1500-1902),William Harrison Woodward, Cambridge
University Press
The system of Subsidiary Alliance provided that the ruler who would enter in to this alliance
would recognise the Suzerainty of the East India Company. He was not to declare war or to carry
on negotiations with any other state, without the knowledge and consent of the East India
Company. He was to maintain a contingent of company's troops for the defence of his territories,
and for the preservation of public peace. The ruler of a bigger state would cede certain territories
in full sovereignty to meet the yearly expenses of his company’s army but a smaller state was
required to pay tribute in cash to the company. The rulers accepting the Subsidiary Alliance were
to maintain British residents in their capitals. They were to expel all European officials other
than English from their territories. In lieu of all these the East India Company was to provide the
rulers effective security against external aggression and internal rebellion. The Nizam of
Hyderabad who was the feeblest of all Indian powers readily accepted the Subsidiary Alliance in
September 1798.2

2
A Short History of the Expansion of British Empire(1500-1902),William Harrison Woodward, Cambridge
University Press