The Subsidiary Alliance System was a strategic policy enforced by the British East India Company from the late 18th century. Introduced by Lord Wellesley during his tenure as Governor-General (1798–1805), it forced Indian princely states to surrender military and foreign policy control to the British. In return, they received protection — but lost autonomy. This system laid the foundation for British dominance in India.

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• British gained control over Indian states via Subsidiary Alliance, introduced by Lord Wellesley (1798–1805)
• Indian rulers had to host British troops, pay upkeep, and dissolve their own armies
• States could not ally with others or employ foreigners without British permission
• Failure to pay troop costs led to loss of land; British protection came at high cost
• A British “resident” stationed in court ensured indirect control
• French influence curbed; alliances banned to limit rival European powers
• Indian sovereignty eroded; rulers became figureheads under British “protection”
• First major alliance: Nizam of Hyderabad (1798); followed by Awadh, Mysore, and Marathas
• Boosted Company’s military strength, reduced its own war risk
• Indian patriotism weakened; native armies dissolved; local rule hollowed