Defects of Subsidiary Alliance:-
1. The native rulers lost their prestige and dignity,
2. The subsidy demanded from the Indian rulers was beyond their means and they could not afford it. So they taxed their people very heavily,
3. The Indian rulers were compelled to disband their own armies. The disbanded soldiers, in course of time, joined robber gangs such as Thugs and Pindaris and troubled the public,
4. The local rulers lived a life of irresponsibility and degradation because they considered
that their security was the British concern and
5. Though the Indian rulers were not allowed to wage war with each other directly, they were slowly preparing themselves for wars and they were plotting against one another.