CHARTER ACT 1813
About
- Also called East India Company Act 1813
- It deprived East india Company (EIC) the trade monopoly in India except – Tea, & China Trade
Why Passed
- Demands of British Traders
- British traders suffered
- Due to Napoleon’s Continental System in Europe which prohibited import of British goods into French allies in Europe
- So Traders demanded
- Increased share in Asia trade and hence wanted removal of EIC trade monopoly
- Finally
- British merchants were allowed to trade in India , but under strict licensing system under Charter Act of 1813
- However EIC retained monopoly– Tea, Opium and China Trade
- British traders suffered
- Multiple wars for control of India had strained EIC’S finances
- EIC asked Parliament for help
Important Points
- Act asserted sovereignty of British Crown
- over Indian territories held by EIC
- Renewed charter of EIC for 20 years (rule extended)
- Mandated EIC to maintain separate commercial & territorial accounts
- EIC trade monopoly
- Ended
- But retained for: Tea , Opium trade and Trade with China
- Permitted Christian missionaries to
- propagate English in India
- preach their religion
- appoint a Bishop in Calcutta
- More Powers were given to Provincial governments and Courts in India
- over European British subjects in India
- Act provided financial provisions to
- Revive Indian literature
- Promote science
- Empowered local governments to tax people
- subject to assent of Supreme Court
- EIC dividends were fixed at 10.5%
- EIC now had greater role in education of Indians
- Act brought 2 notable changes to India & British Relations
- First
- British assuming responsibility for Native Indians Education
- This was attributed to British Parliament , as the Parliamentarians were concerned about extravagant lifestyles of EIC officials & exploitation of natural resources
- British assuming responsibility for Native Indians Education
- Second
- Relaxation of controls on missionary activity in India
- First
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