Consider the following statements related to Wellesley's administration: 1) In the six years of Wellesley's administration, the army accounted for 4 2.5 percent of the Company's total expenditure. 2) Wellesley's administrative measures were restricted to the affairs of the Company and had nothing to do with the commercial and military affairs of the Indian ruling families. Which of the statement/s given above is/are correct?

Statement 1 is incorrect because during Lord Wellesley's administration (1798–1805), the East India Company's military expenditure was significantly higher than 42.5 percent; historical records indicate that the army often accounted for over 60 percent of the total expenditure due to his aggressive expansionist policies. This led to the Company's debt rising from 17 million in 1797 to 31 million by 1806 [2]. Statement 2 is also incorrect as Wellesley's measures, particularly the Subsidiary Alliance system, directly interfered with the military and commercial affairs of Indian ruling families [1]. Under this system, Indian rulers were compelled to maintain British forces, accept a British Resident, and were prohibited from negotiating with other powers or employing Europeans without British consent . His 'forward policy' aimed at establishing British paramountcy by assuming control over the territories and external relations of Indian states [1][3].

Sources

1. [2] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 4: The British Conquest of India > Expansion under Lord Wellesley (1798-1805) > p. 81
2. [1] History , class XI (Tamilnadu state board 2024 ed.) > Chapter 17: Effects of British Rule > 17.3 Subsidiary Alliance and Doctrine of Lapse > p. 267
3. [3] Modern India ,Bipin Chandra, History class XII (NCERT 1982 ed.)[Old NCERT] > Chapter 4: The British Conquest of India > Expansion under Lord Wellesley (1798-1805) > p. 75