why east India company incur financial burden during Wellesley's regime ?only one marks answer tell me
Answers
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.
During the rule of Lord Wellesley, there were some actions like lasting war with Marathas, Buxa war, Anglo Mysore war as well as there was a steep Famine in Bengal, and all these made a great and deep rooted negative impact on revenue collection by the East India Company.
The war caused recurring expense for the soldier maintenance. Under this condition, the East Indian Company was not able to make profit and finally incurred huge financial burden.