Correct Answer - Option 1 : Expansion of British territory
Subsidiary Alliance was a 'Non-Intervention Policy' which was introduced by the Governor-General, Lord Wellesley to expand the British territory in Colonial India.
According to this Alliance:-
- The Indian rulers were prohibited to form any armed forces.
- The Indian rulers were provided protection by the East India Company against any foreign attacks.
- In return, the rulers had to pay a subsidy to the company for providing protection.
- If the rulers failed to pay the subsidy then some part of their territory was annexed by the Company.
- An English personal was appointed to check upon the rulers and their activities.
- Moreover, the Indian provinces were not allowed to have any trade affairs with the European nation.
Thus, the reason for the implementation of the subsidiary alliance system by Lord Wellesley was mainly to conquer the Indian states easily without any war.