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Question

Under which policy were Indian rulers required to dissolve their own armed forces and accept the British East India Company in their territories, and bear the cost of maintaining those forces?

The correct answer is

Subsidiary Alliance

The Subsidiary Alliance was introduced by Lord Wellesley (Governor-General, 1798–1805).

Under it, an Indian ruler had to disband his own army, accept a British force stationed in his territory and pay for its maintenance (often by ceding territory), keep a British Resident at his court, and not ally with any other power without British consent.

Hyderabad (1798) was the first state to accept it. The Policy of Paramountcy, neutrality and mercantilism did not impose these specific conditions.

Hence, Subsidiary Alliance.

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