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Q4 (IAS/2019) History & Culture › Modern India (Pre-1857) › Charter Acts and councils Official Key

Consider the following statements about 'the Charter Act of 1813' : 1. It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China. 2. It asserted the sovereignty of the British Crown over the Indian territories held by the Company. 3. The revenues of India were now controlled by the British Parliament. Which of the statements given above are correct?

Result
Your answer: —  ·  Correct: A
Explanation

The correct answer is option A (statements 1 and 2 only).

Statement 1 is correct: The Charter Act of 1813 ended the Company's monopoly over trade in India, but the Company retained the trade with China and the trade in tea.[3] This Act threw open trade with India to all British subjects, ending the monopoly except for these specific areas.[4]

Statement 2 is correct: The Company was to retain possession of territories and revenue for 20 years more, without prejudice to the sovereignty of the Crown.[3] Thus, the constitutional position of the British territories in India was defined explicitly for the first time.[1]

Statement 3 is incorrect: While the regulations made by the Councils of Madras, Bombay and Calcutta were required to be laid before the British Parliament[1], this does not mean Parliament directly controlled Indian revenues. The Company's shareholders were given a 10.5 per cent dividend on the revenue of India[1], indicating the Company still managed revenues, though under Crown sovereignty and Board of Control supervision.

Sources
  1. [1] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 26: Constitutional, Administrative and Judicial Developments > The Charter Act of 1813 > p. 505
  2. [2] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 26: Constitutional, Administrative and Judicial Developments > The Charter Act of 1813 > p. 505
  3. [3] Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 26: Constitutional, Administrative and Judicial Developments > The Charter Act of 1813 > p. 505
  4. [4] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 5: The Structure of the Government and the Economic Policies of the British Empire in India, 1757—1857 > The Structure of Government > p. 91
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Don’t just practise – reverse-engineer the question. This panel shows where this PYQ came from (books / web), how the examiner broke it into hidden statements, and which nearby micro-concepts you were supposed to learn from it. Treat it like an autopsy of the question: what might have triggered it, which exact lines in the book matter, and what linked ideas you should carry forward to future questions.
Q. Consider the following statements about 'the Charter Act of 1813' : 1. It ended the trade monopoly of the East India Company in India ex…
At a glance
Origin: From standard books Fairness: High fairness Books / CA: 10/10 · 0/10
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This is a foundational 'Sitter' question derived directly from the first chapter of Laxmikanth and Spectrum. If you miss this, you are losing marks that 90% of serious candidates are securing. The strategy is rote memorization of the 'Features' list for every Regulating and Charter Act (1773–1947).

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Did the Charter Act of 1813 end the East India Company's trade monopoly in India except for trade in tea and the China trade?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 26: Constitutional, Administrative and Judicial Developments > The Charter Act of 1813 > p. 505
Presence: 5/5
“The 1813 Act sought to redress these grievances— ● The Company's monopoly over trade in India ended, but the Company retained the trade with China and the trade in tea. ● The Company's shareholders were given a 10.5 per cent dividend on the revenue of India. ● The Company was to retain the possession of territories and the revenue for 20 years more, without prejudice to the sovereignty of the Crown. (Thus, the constitutional position of the British territories in India was defined explicitly for the first time.) ● Powers of the Board of Control were further enlarged. ● A sum of one lakh rupees was to be set aside for the revival, promotion and encouragement of literature, learning and science among the natives of India, every year. (This was an important statement from the point of State's responsibility for education.) ● The regulations made by the Councils of Madras, Bombay and Calcutta were now required to be laid before the British Parliament.”
Why this source?
  • Explicitly says the Company's monopoly over trade in India ended while the Company retained trade with China and the trade in tea.
  • Directly matches the claim's structure: end of Indian monopoly + retention of China/tea trade.
Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 5: The Structure of the Government and the Economic Policies of the British Empire in India, 1757—1857 > The Structure of Government > p. 91
Presence: 4/5
“It established six Commissioners for the affairs of India, popularly known as the Board of Control, including two Cabinet Ministers. While Pitt's India Act laid down the general framework in which the Government of India was to be carried on till 1857, later enactments brought about several important changes which gradually diminished the powers and privileges of the Company. In 1786, the Governor-General was given the authority to overrule his Council in matters of importance affecting safety, peace, or the interests of the Empire in India. By the Charter Act of 1813, the trade monopoly of the Company in India was ended and trade with India was thrown open to all British subjects.”
Why this source?
  • States that by the Charter Act of 1813 the Company's trade monopoly in India was ended.
  • Clarifies that Indian trade was thrown open to all British subjects, supporting the 'ended monopoly in India' part.
Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 5: The Structure of the Government and the Economic Policies of the British Empire in India, 1757—1857 > The Structure of Government > p. 92
Presence: 4/5
“appointed its officials in India. The Charter Act of 1833 brought the Company's monopoly of tea trade and trade with China to an end. At the same time the debts of the Company were taken over by the Government of India which was also to pay its shareholders a 10 per cent dividend on their capital. The Government of India continued to be run by the Company under the strict control of the Board of Control. Thus, the various acts of Parliament discussed above completely subordinated the Company and its Indian administration to the British Government. At the same time, it was recognised that day-to-day administration of India could not be run or even superintended from a distance of 6,000 miles.”
Why this source?
  • Notes that the Company's monopoly of tea trade and trade with China was ended only by the Charter Act of 1833, implying these remained with the Company after 1813.
  • Provides chronological contrast that supports the exception for tea and China in 1813.
Statement analysis

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Statement analysis

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SIMILAR QUESTIONS

IAS · 2006 · Q26 Relevance score: 6.69

Consider the following statements : I. The Charter Act of 1853 abolished East India Company’s monopoly of India trade. II. Under the Government of India Act 1858, the British Parliament abolished the East India Company altogether and undertook the responsibility of ruling India directly. Which of the following statements given above is/are correct?

CDS-I · 2002 · Q81 Relevance score: 5.06

With reference to the colonial period of India, the trade monopoly of the East India Company was ended by

NDA-II · 2013 · Q38 Relevance score: 3.61

Which of the following statements with regard to the ‘Fifth Report’ is/are correct? 1. It was submitted to the British Parliament in 1813 for consideration. 2. It became the basis of intense parliamentary debates on the nature of the East India Company’s rule in India. 3. It was primarily on the economic conditions of the urban and industrial centres of India. Select the correct answer using the code given below :

CDS-I · 2006 · Q69 Relevance score: 3.58

Through which one of the following, were commercial activi ties of the East India Company finally put to an end ?

CDS-II · 2018 · Q61 Relevance score: 2.73

Which of the following statements relating to the Government of India Act, 1858 is/are correct? 1. The British Crown assumed sovereignty over India from the East India Company. 2. The British Parliament enacted the first statute for the governance of India under the direct rule of the British. 3. This Act was dominated by the principle of absolute imperial control without any popular participation in the administration of the country. Select the correct answer using the code given below.