Question
Explain the system of 'subsidiary alliance'.
Solution
Under the system of 'subsidiary alliance'-
(i)Indian rulers were not allowed to have their independent armed forces.
(ii)They were to be protected by the Company, but had to pay for the 'subsidiary forces' that the Company was supposed to maintain for the purpose of this protection.
(iii)If the Indian rulers failed to make the payment, the part of their territory was taken away as penalty.
The states which had to lose their territories on this ground were Awadh and Hyderabad.
