A British law that began the association of Indians with law-making and started the process of decentralisation by restoring legislative powers to the provinces, passed after the Revolt of 1857.
- For the first time associated Indians with the legislative process: the Viceroy could nominate some non-official Indian members to his expanded legislative council; Lord Canning nominated three Indians in 1862, including the Raja of Benares.
- Restored legislative powers to the Bombay and Madras Presidencies, beginning the policy of legislative devolution that had been reversed by the Charter Act of 1833.
- Provided for new legislative councils in Bengal, the North-Western Provinces, and Punjab (established later).
- Gave statutory recognition to the "portfolio system" introduced by Lord Canning, under which each member of the Viceroy's council was placed in charge of a department.
- Empowered the Viceroy to issue ordinances, without the concurrence of the legislative council, during an emergency.
It marks the first inclusion of Indians (nominated) in law-making and the start of decentralisation, both standard constitutional-development milestones.
The 1861 Act introduced only nominated non-official Indians, not election; the elective principle came with the Indian Councils Act of 1892.
1861: first nominated Indians in law-making; began decentralisation; recognised the portfolio system.