Demerits of subsidiary alliance
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Answer:
The Subsidiary Alliance System was "Non-Intervention Policy" used by Lord Wellesley who was the Governor-General (1798-1805) to establish British Empire in In- dia. According to this system, every ruler India had to accept to pay a subsidy to the British for the maintenance of British army
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Following were the disadvantages of the Subsidiary Alliance system for Indian rulers:
Under this system, the Indian rulers had to let go of their independence and had to accept the suzerainty of the English East India Company.
As a result of the payment of subsidies, the Indian states gradually became poor. This often led to the collapse of administration which gave the Company an excuse to annex the state.
The Company allegedly provided the Indian rulers with patronage and protection from enemies. With the need to militarily protect their lands from external aggression gone (at least on paper), many Indian rulers indulged themselves and neglected the welfare of their subjects.