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Q 91- The economic complement to political federalism is fiscal federalism. Provide appropriate examples to illustrate your point. ( 250 words)

  • Paper & Topic: GS I à Modern Indian history from about the middle of the eighteenth century until the present- significant events, personalities, issues.


  • Model Answer:


  • Introduction:


  • By 1773, the East India Corporation had gained geographical control over Bengal, Bihar, Orissa, Madras, and Bombay, having begun as a trade company.
  • Their dependents were the Nawabs of Awadh and Carnatic.
  • They faced heavy opposition from the Marathas, Haider Ali and Tipu Sultan of Mysore, and the Sikhs after 1765. To be supreme in India, the East India Company had to subjugate these powers.


  • Body:


  • From 1858 to 1947, the British Raj ruled the Indian subcontinent through the British Crown. In India, the rule is also known as Crown rule or direct rule.


  • The conflict between colonial powers and Indian states:


  • Conflict between the English and the Bengali Nawabs
  • The victory of Robert Clive over Siraj-ud-daula at the Battle of Plassey (June 23, 1757) set the territorial foundations for British dominance in India.
  • Clive's victory at Buxar (1764) over the united troops of the Nawab of Bengal, Nawab of Awadh, and the Mughal Emperor created the true foundations of English authority.
  • Treaty of Madras Second Anglo-Mysore War (1779-1784); Treaty of Mangalore Third Anglo-Mysore War (1790-92); Treaty of Seringapatam Fourth Anglo-Mysore War (1799); British Conquest of Mysore


  • The Anglo-Maratha War for Supremacy:


  • Treaties of Surat (1775), Purandhar (1776), and Salbai (1782); Second Anglo-Maratha War (1803-05); Treaty of Bassein, 1802. Third Anglo-Maratha War (1803-05); Treaty of Bassein, 1802. (1817-1819)



  • Indian powers were at odds:


  • Against South Indian nations like Hyderabad and Mysore, which were both closer to the French, the Marathas regularly sided with the British.
  • After 1761, the Maratha state became more of a confederacy than an empire, as its successful generals carved out new territories for themselves and established dynasties, such as the Holkars and Sindhias, in addition to the peshwas, or hereditary prime ministers who had become the de facto rulers of the empire during the 18th century.
  • In the Anglo-Maratha wars, the Nizams and Marathas united with the British against Hyder Ali.
  • Indeed, political fragmentation and regional volatility characterised the Indian subcontinent in the middle of the eighteenth century.


  • Conclusion:


  • The 'de-facto' ruler of India was no longer the ruler of Delhi.
  • Because of regional rulers' fighting, the 'right to live' became a'struggle for survival,' and the 'freedom of trade' became 'ransom and robbery,' for a huge number of Indians.
  • All of this paved the way for the British to conquer India and engage in large-scale 'draining of wealth.'


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