Why did east India company incur financial burden during wellesly regime
Answers
The East India Company incurred financial burden during Lord Wellesley's regime due to his war expansionist policies.
The territorial expansion of Wellesley through war and other methods cost huge money of the Company. The East India Company’s debt had increased from £17 million in 1797 to £31 million in 1806. That is why Wellesley was called back to the London and then east India Company began to make peace with the Indian states.
East India company was very brilliant and it spoiled the Indian wealth by such an disgusting treachery.
There were many Policy, Britishers have followed to spoil the Indian, in which Subsidiary alliance by Lord Wellesley was one of them.
Doctrine of Lapse was also one of the policy by which City of Jhansi was seized.
Correct Reason ⇒ We know, In the year 1764, Britishers have fought the Battle of Buxur, thus there were very financial unstability, so to avoid them and make them fulfill they started a policy by the name of subsidiary alliance which was issued by the Lord Wellesley in 1798.
By the Subsidiary alliance, Hyderabad, Gwalior, (near Jhansi) , Jaipur, Jodhpur, etc was seized.
Hope it helps.