The subsidiary alliance system was introduced in India by Lord Wellesley. The main principles of a subsidiary alliance were : 1. An Indian ruler entering into a subsidiary alliance with British had to accept British forces within his territory and also agree to pay for their maintenance. 2. The ruler would accept a British resident in his state. 3. An Indian ruler who entered into a subsidiary alliance would not enter into any further alliance with any other power. 4. The ruler would not employ any Europeans other than British. 5. In case of a conflict with any other state, he would agree the resolution decided by the British. 6. The ruler would acknowledge East India company as the paramount power in India. 7. In return for the ruler accepting its conditions, the company undertook to protect the state from external dangers and disorders. 8. If the Indian ruler failed to make the payments required by the alliance, then part of its territory was to be taken away as a penalty. The Nizam of Hyderabad was the first to enter into such alliance. The Nawab of Awadh was next to accept the alliance, Maratha ruler Bajirao II also accepted a subsidiary alliance. Several states like Hyderabad (1798), Tanjore and Mysore (1799), Awadh (1801), Bhonsle (1803), Sindhiya (1804), Indore (1817) adopted this system. ....Read more