The subsidiary alliance was a system of administration that established the relationship between the native states of Southern Asia and the British East India Company. The native states were not allowed to have their own armies. Thus, to ensure their protection, the British East India Company recruited and managed armies (the Subsidiary Army) on behalf of the native states. In the arrangement, the native states were required to pay the East India Company and failure to comply led to the transfer of part of the state’s territory to the Company. The subsidiary alliance had the effect of weakening the native states when they forfeited their territories, which led to the expansion of the East India Company in the region. The native states fell into the hands of the East India Company after they were weakened.
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