In England, the business interests were pressing for an end to the Company’s monopoly over trade in India because of a spirit of laissez-faire and the continental system by Napoleon by which the European ports were closed for Britain. The 1813 Act sought to redress these grievances.
Must read: Regulating Act of 1773 – the foundation of central administration in India
The features of this Act were as follows:
(a) It abolished the trade monopoly of the company in India i.e., the Indian trade was thrown open to all British merchants. However, it continued the monopoly of the company over trade in tea and trade with China.
(b) It asserted the sovereignty of the British Crown over the Company’s territories in India.
Must read: Act of Settlement 1781 – the Amending Act of 1781
(c) It allowed the Christian missionaries to come to India for the purpose of enlightening the people.
(d) It provided for the spread of western education among the inhabitants of the British territories in India.
(e) It authorised the Local Governments in India to impose taxes on persons. They could also punish the persons for not paying taxes.
Must read: Pitt’s India Act of 1784
(f) The Company was to retain the possession of territories and the revenue for 20 years more, without
prejudice to the sovereignty of the Crown. (Thus, the constitutional position of the British territories in India was defined explicitly for the first time.)
(g) A sum of one lakh rupees was to be set aside for the revival, promotion, and encouragement of literature, learning, and science among the natives of India, every year. (This was an important statement from the point of State’s responsibility for education.)
Must read: Charter Act of 1793
(h) The regulations made by the Councils of Madras, Bombay, and Calcutta were now required to be laid before the British Parliament. The constitutional position of the British territories in India was thus explicitly defined for the first time.
(i) Separate accounts were to be kept regarding commercial transactions and territorial revenues. The power of superintendence and direction of the Board of Control was not only defined but also enlarged considerably.
External link: https://en.wikipedia.org/wiki/Charter_Act_1813
PRACTICE QUESTIONS
QUES . Match List I (Acts of Colonial Government of India) with List II (Provisions) and select the correct answer using the codes given below the lists: UPSC 2002
List I (Acts of colonial government of India)
A. Charter Act, 1813
B. Regulating Act
C. Act of 1858
D. Pitt’s India Act
List II (Provisions)
1. Set up a Board of Control in Britain to fully regulate the east India Company’s affairs in India.
2. Company’s trade monopoly in India was ended.
3. The power to govern was transferred from the East India Company to the British Crown.
4. The Company’s directors were asked to present to the British government all correspondence and documents pertaining to the administration of the company.
Codes:
A B C D
(a) 2 4 3 1
(b) 1 3 4 2
(c) 2 3 4 1
(d) 1 4 3 2
(a)
QUES . Consider the following statements about ‘the Charter Act of 1813’: UPSC 2019
1. It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China.
2. It asserted the sovereignty of the British Crown over the Indian territories held by the Company.
3. The revenues of India were now controlled by the British Parliament.
Which of the statements given above are correct?
(a)1 and 2 only
(b)2 and 3 only
(c)1 and 3 only
(d)1, 2 and 3
(a) The Charter Act of 1813 ended trade monopoly of East India company in India except for trade in tea and trade in China. Further it also asserted sovereignty of British Crown over the Indian territories held by company. However the Company was to retain the possession of territories and revenues for 20 years more without prejudice to British Crown.
