Although the revolt of 1857was not successful yet its consequences proved to be unprecedented, widespread and permanent. The revolt opened the eyes of the British and they were forced to amend their policies in context to administration, military and the Indian rulers.
End of Company Rule:
On 1st November 1858, through a Charter declared by the Queen, the British government transferred the rule of India from the hands of the East India Company and handed it to the British Emperor through the Government of India Act of 1858.
Board of Control and Board of Directors were ended and a 15 member All India Council was formed for the purpose of handling the administration of India, in which the chairman was called as the secretary of state of India. The post of the Governor General was renamed as Viceroy.
Reorganization of the Army:
The start of the revolt was in the form of a military rebellion, therefore it was important to reorganize the army. According to the Army Amalgamation Scheme of 1861, the European army of the Company was transferred to the government.
According to the report of the Peel Commmission in 1861, now the number of British soldiers was increased in the army. The important posts of army and ordinance were reservd only for the Europeans. It was also ensured that the Indian soldiers from a particular community or religion were not employed together in the army battalions.
Change of policy towards the Indian rulers:
According to the declaration made by the Queen, “Policy of extension of boundaries of the regions” was ended, and rights, pride and honour of the rulers were ensured to them. The Indian rulers were now allowed to adopt their successors.
Promotion to the Policy of ‘Divide and Rule’:
The Britishers were terrified by the communal harmony exhibited during the revolt of 1857. So, they started promoting the narrower tendencies of communalism, casteism, regionalism etc. and divide and rule’ became the major basis of their policy.
Beginning of Economic Exploitation:
After the revolt of 1857, the British renounced their policy of regional extension and diverted their attention towards procurement of wealth. The entire financial burden of crushing the revolt was put on the Indians. Drainage of wealth from India towards England started in the form of interest overheads on public loan and even in the form of dividend and the profit earned by the Company from the country was transferred to England.
Promotion to National Movement:
The joint efforts of the revolt of 1857 provided momentum to the national movement in India. The heroes of the revolt – Kunwar Singh, Laxmibai, Tantya Tope, Bahadur Shah Zafar, Nana Saheb and Rangaji Bapu Gupte etc. became the inspiring ambassadors of national movement.