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Explain the system of subsidiary alliance

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Dear Student,
The solution to your query is provded below:

Subsidiary Alliance back then was a treaty between the British East India Company and the Indian princely states, by the integrity of which the Indian kingdoms lost their powers to the British. It was a major process which led to the establishment of the British Empire in India framed by Lord Wellesley, the Governor-General of India from 1798 to 1805. It was actually used for the first time by the French Governor-General Marquis Dupleix. The Nawab of Awadh was the first ruler to enter into the subsidiary alliance with the British after the Battle of Buxar. However, The Nizam of Hyderabad was the first to accept a well-framed subsidiary alliance.
The allies of Indian state’s ruler were forced to accept the permanent garrison of British Army within their territories and to pay a subsidy for its maintenance. The Indian rulers could not employ any European in their service without prior approval of British.
They could notwork out with any other Indian rulers without consulting the Governor-General.

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