Question

Which of the following statement is incorrect with regard to system of
Subsidiary Alliance?
Indian rulers were allowed to have their independent armed forces.
They were to be protected by the Company, but had to pay for the "subsidiary forces".

If the Indian rulers failed to make the payment, then part of their territory was taken
away as penalty
The Nawab of Awadh was forced to give over half of his territory to the Company in
1801​

Answer 1

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 India.

According to this system, every ruler in India had to accept to pay a subsidy to the British for the maintenance of British army. In return, British would protect them from their enemies which gave British enormous expansion. Subsidiary Alliance introduced by Lord Wellesley was nothing to do with Napoleon danger.