Charter Act Of 1813

Charter Act of 1813 was a pivotal legislation enacted by the British Parliament to curtail the East India Company’s trade monopoly in India. Introducing reforms in governance, education, and religion, the Charter Act of 1813 simultaneously fostered British economic expansion. In this article, you will know all about Charter Act Of 1813 including its background and key features. It is very important topic for GS Paper-1 Indian History of UPSC IAS Exam.

Table of Content

• Overview of Charter Act Of 1813 
• Background of Charter Act Of 1813
• Key features of the Charter Act 1813
• Conclusion

 

Overview of Charter Act Of 1813 

Aspect	Details
Introduced by	British Parliament
Objective	Terminate the East India Company’s trade monopoly in India, while preserving its monopoly on trade with China and tea trade in India
Alternative Name	East India Company Act, 1813
Governor-General	Lord Hastings
Applicable Territory	British-controlled territories in India
Main Provisions	Extension of the Company’s rule, establishment of further regulations for governance, better administration of justice, and regulation of trade
Royal Assent	21 July 1813
Repealed by	Government of India Act, 1915

Background of Charter Act Of 1813

• Before the Charter Act 1813, the East India Company enjoyed a monopoly over trade in India.
• This allowed them to amass significant profits and exercise control over Indian territories.
• However, in response to the closure of European ports for Britain due to Napoleon’s actions, commercial stakeholders in England advocated for the termination of the Company’s exclusive trading rights in India. The Act of 1813 aimed to address these concerns.
• The primary objective of the Charter Act 1813 was to break the East India Company’s monopoly on trade in India, with the exception of the trade in tea, opium, and with China.
• This allowed British merchants to trade in India under a strict licensing system, expanding British influence and facilitating the growth of British dominance in India.

Key features of the Charter Act 1813

The Charter Act 1813 introduced several significant provisions that redefined the political and economic landscape of British India.

Some of the main features of the Charter Act 1813 include:

• End of the East India Company’s Monopoly: The Act terminated the East India Company’s monopoly on trade in India. However, the Company retained its monopoly on trade with China and the trade in tea and opium.
• Extension of the Company’s Rule: The Act extended the East India Company’s rule (possession of territories and the revenue) in India for another 20 years.
• Promotion of Christianity: The Act granted permission for Christian missionaries to come to India to promote moral improvements and religious proselytization.
• Empowerment of Local Governments: The Act allowed local governments, such as panchayats and municipalities, to levy taxes on their subjects, subject to the jurisdiction of the Supreme Court.
• Education Funding: The clause 43 of charter act 1813 allocated INR 100,000 per year for the promotion of Indian education, contributing to the growth of Indian literature and scientific knowledge among students.
• Dividend: Shareholders of the East India Company were given a 10.5 % dividend on the revenue of India.
• Widening the Board of Control’s Influence: The Board of Control’s authority experienced a significant expansion.
• Establishing British Territorial Constitutional Status: Rules established by the Madras, Bombay, and Calcutta Councils needed presentation before the British Parliament, marking the first clear determination of the British territories’ constitutional status in India.
• Enhanced Oversight and Delineation of Finances: Distinct records for business dealings and territorial income were mandated, with the Board of Control’s supervisory and guiding power not only clarified but also notably broadened.

Conclusion

The company Charter Act of 1813 played a pivotal role in reshaping British India’s political and economic landscape. By terminating the East India Company’s trade monopoly in India, the Act opened doors for British merchants and expanded British influence in the region. Additionally, the Act addressed various aspects of governance, such as the extension of the Company’s rule, promotion of Christianity, empowerment of local governments, and allocation of funds for education. Although the Charter Act of 1813 has been repealed, its provisions and impact on India’s history are noteworthy and serve as a reminder of the complex relationship between Britain and India during the colonial era.

Ref:Source-1

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