Charter Act, 1813

Definition

A British law that renewed the East India Company's charter for twenty years while ending its trade monopoly in India (except for tea and trade with China), and asserting Crown sovereignty over Company territories.

Key points

• Ended the Company's monopoly over Indian trade, throwing it open to all British merchants, but retained the Company's monopoly on the tea trade and trade with China.
• For the first time clearly asserted the sovereignty of the British Crown over the Company's Indian possessions.
• Allowed Christian missionaries to come to India and preach (the "pious clause"), with a Bishop established at Calcutta.
• Provided that one lakh rupees a year be spent on the revival, improvement, and promotion of education and literature among Indians, the first State commitment to Indian education.
• Regulated the Company's territorial revenues and commercial profits.

Why it matters for CAPF

The end of the trade monopoly (except tea and China), the education grant of one lakh rupees, and the missionary clause are frequently tested distinguishing features.

Common confusion

The 1813 Act ended only the general trade monopoly; the tea trade and China trade monopolies survived until the Charter Act of 1833, which ended them too.

Parent note

advent of europeans and british conquest