East India Company Charter Act of 1813 – History, Key Provisions – UPSC Notes

Charter Act, 1813: The Charter Act of 1813 was an act passed by the British in India to strengthen their control over our territories. This played an important role in the revision of the Company’s charter to continue its rule in India. The Charter of the Company had already been renewed in the Charter Act of 1793 and restored in the Charter Acts of 1833 and 1853 in which each of the acts has been extended to the Company’s rule in India for the next twenty years.

Through this blog, let us discuss what were the key provisions of this charter act along with the impact of British rule including the Background of this charter act of 1813.

Historical Background of the Charter Act, 1813

Napoleon Bonaparte’s Continental system was introduced in Europe which forbade the import of British goods from French allies. This made British traders and merchants suffer heavy losses. The traders insisted on obtaining a stake in British trade in Asia which would result in the breaking of East India Company’s monopoly in the Asian market. In the initial stages of this situation, the East India Company showed their rejection of this idea.

Finally, the Charter Act of 1813 permitted British merchants to engage in trade in India through a rigorous licensing system. The company retained its monopoly when it came to trading with China and tea trade.

British East India Company’s Monopoly

Before the Charter Act was introduced, the British East India Company had control over all the trades. They had virtual control over all the imports and exports of products like textiles, indigo, and tea trade. The company did not have many commercial advantages but had a very strong political power over the province.

They solidified their economic monopoly by creating their territories, and armies and signing mutually beneficial treaties with Indian rulers. The company operated as a government entity but was being privately controlled by trade companies, administering its territories with considerable flexibility.

The goal of the East India Company was to reduce or completely eradicate rivalry with other European trade companies. It took advantage of its power to discourage or stop competitors from making a big impact on the Indian market. The influence of the East India Company was restricted rather than destroyed with the passage of the Charter Act of 1813.

Key Provisions of the Charter Act,1813

The Charter Act of 1813 came with a lot of changes in different sectors of society mainly in the educational sector. This was changing the entire education scenario of the country’s education style.

This act established the basis for the Western education system and cultural practices. The British East India Company’s Charter was renewed again twice in the years 1833 and 1853 to make suitable changes in the system which would eventually work in the favor of the East India Company. Some of the Key provisions of Charter Act of 1813 are:

1. The East India Company’s hold on the Indian market and export was destroyed.
2. The East India Company’s monopoly on business with China and tea trade was maintained and it was extended for another twenty years of time duration.
3. According to the Charter act of 1813 funds were arranged in order to restore the glory of Indian literature and increase the awareness of education among civilians.
4. The Charter strongly stated the legal status of British items in India according to the act of 1813.
5. Madras, Calcutta, and Bombay governments had been ordered to submit their laws to the British Parliament.
6. Separate accounts were kept for business dealings and local revenues.

Opening to Indian Trade

The Charter Act of 1813 played a significant role in opening up Indian trade to a certain extent it helped in the creation of trade routes from the southern peninsular region to the foreign trade firms which would increase the business revenue in india. The subsequent Charter Act further modified trade regulations, gradually reducing the monopoly of the East India Company and allowing for a more open and competitive trading environment.

Impact of Charter Act, 1813 on British Rule and Indian Society

According to the Charter Law of 1813, funds were arranged for people to encourage people of India towards education and these funds were used for promotion of education in literature, science and arts fields in india. This act played an important role in laying the foundation of western education in indian society to ensure that students will adapt western thinking and values to grow in their life.

This act led to the establishment of a lot of Colleges in India across all of the metropolitan cities such as Calcutta, Bombay and Madras. The establishment of these colleges helped in shaping and influencing the youth of that time into thinking like the British and following their cultural practices.

Charter Act and its Legacy

The Charter act of 1813 has contributed a lot in developing education by giving funds to students of India so that they can take admission and learn in different fields like arts, science or literature. Also the British promoted western culture in their educational institutions to influence the Indian youth into endorsing the western cultures as well as values. This has created a long lasting impact on the society especially in the Education and Business sector of the society.

This act has also abolished all the trade except for the tea trade with China which has set people free from any type of burden. The legacy of the Charter act of 1813 includes fields like Trading, changes in constitution, educational changes, funding to people for education and so on.

Summary – Charter Act, 1813

It is evident that the 1813 Charter Act laid the foundation for the growth of modern education in India. It also marked the start of a phase in which educational institutions were built throughout Indian cities to promote the study of English and Western culture among the native population. In addition, there have been several debates over the social and cultural effects of education, which will continue to influence teaching methods in the years to come.

FAQs on Charter Act 1813

1. What was the purpose of the Charter Act of 1813?

The purpose of this act was to strengthen the control of the East India company over India. Also, this government of east india company holds importance as it was the first company who defined the constitutional status of Bristishers on india territories.

2. What was the drawback of the Charter Act Of 1813?

The East India corporation’s monopoly in India was abolished by the Charter Act of 1813,but the company retained its unique trading privileges with China and the tea trade with India and because of this all British countries’ trade with India for all items except tea became open.

3. Magna Carta refers to which Charter Act?

Wood’s Dispatch is known as the Indian Education Magna Carta. Wood’s Dispatch was an act made by British rulers in India before its Independence in 1854.

4. How did the Charter Act of 1813 affect Indian?

Charter Act 1813 impacted India by introducing education reforms, allowing missionary activities, altering governance, and extending the trade monopoly.

5. Who was the Governor General of India at the time of Charter Act 1813?

Lord Minto was the Governor General of India  at the time of the Charter Act 1813.