The policy of subsidiary alliance introduced by Lord Wellesley in 1798 made Indian princely states subordinate to British authority by controlling their external affairs and defense while maintaining internal autonomy.It significantly reshaped the political landscape of princely states in India. Here’s how –

Establishment of British Paramountcy –

• Princely states lost their independence in foreign policy and defense matters.
• The British gained control over the external affairs of the states limiting their ability to interact with other European powers.

Impact on Princely States –

• The subsidiary alliance system weakened local rulers making them dependent on British support and protection.
• The system led to the erosion of traditional institutions and the decline of local autonomy.
• British Residents were appointed to each state further solidifying British control and influence.

Long term Consequences –

• The subsidiary alliance system paved the way for the eventual integration of princely states into British India.
• The system marked the end of isolation for princely states drawing them into the broader Indian and global politics.
• The subsidiary alliance system facilitated the introduction of modernization and reforms in princely states aligning them with British India’s administrative and economic systems.