Question

How did the Charter Act of 1833 affect English East India Company’s future in India?

Answer 1

Hint The Charter Act 1833 was a watershed moment for the constitutional and political history of India due to its effect on East India Company’s future in India.

Complete Solution Step by Step
What, When & By Whom?
The Charter Act of 1833 was enacted by the British Parliament, which extended the charter of the East India Corporation for another 20 years but the British East India Company lost the privileges of commercial activities which it enjoyed so far.
It was sometimes referred to as the Government of India Act 1833 or the Saint Helena Act 1833.

Features of 1833, Charter Act:
1. The commercial operations of the company were closed down and It was made an administrative agency for British Indian possessions.
2. The company’s trade links with China were closed.
3. This act permitted the English to settle freely in India.
4. It legalized the British colonization of the country.
5. The company still controlled the Indian territories.

The effect on English East India Company’s future in India can be seen by its significance for the same:

Firstly, The establishment of the Governor-General of Bengal as Governor-General of India was a significant step towards the restructuring and centralisation of the government of India.

Secondly, As a private organisation, the end of the East India Corporation essentially made it the trustee of the Crown in the field of administration.

Thirdly, For the first time, his intervention allowed for the free entry of Indians to the administration of the nation. The Indians could join the civil service, but the process was still very difficult.

Fourthly, For the first time, this Act divides the statutory roles of the Governor-General in Council from the administrative functions of the Governor-General.

Fifthly, Lord Macaulay law Commission –
1. The purpose of the Law Commission was to examine the authority, powers and regulations of the Courts of Justice of the Police, the current modes of criminal practise, the existence and execution of all kinds of legislation.
2. It was directed that the Law Commission should send its report to the Governor-General of the Council and that report should be sent to the British Parliament.

Basically, after this act, East India Company:
1. Had control over the country but lost its administrative power.
2. India was going toward becoming a British colony officially, from the hands of the East India Company.
3. By controlling the trade and commercial activities of the East India Company, the British Parliament was getting ready to hold the reign of India, in its hand.
4. This was the starting of the demise of the British East India Company in India and rising of Colonial rule.

Note
1. Sanjiv Mehta and entrepreneur or Indian Origin is the current owner of the East India Company chartered in 1600 A.D.
2. The East India Company today offers luxury items such as tea, chocolate, food, and fine gifts of silverware and gold coins and ships all around the globe.