3. The ruler of the protected state should keep a British Resident at his court and disband his own army. He should not employ Europeans in his service without the sanction of the paramount power.

4. The paramount power should not interfere in the internal affairs of the protected state.

Benefits to the British

Wellesley’s Subsidiary System is regarded as one of the master- strokes of British imperialism. It increased the military strength of the Company in India at the expense of the protected states. The territories of the Company were free from the ravages of war thereby establishing the stability of the British power in India. The position of the British was strengthened against its Indian and non-Indian enemies. Under the system, expansion of British power became easy. Thus Wellesley’s diplomacy made the British the paramount power in India.

Defects of the Subsidiary System

The immediate effect of the establishment of subsidiary forces was the introduction of anarchy because of the unemployment of thousands of soldiers sent away by the Indian princes. The freebooting activities of disbanded soldiers were felt much in central India where the menace of Pindaris affected the people.

Further, the subsidiary system had a demoralizing effect on the princes of the protected states. Safeguarded against external danger and internal revolt, they neglected their administrative responsibilities.

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