Lord Minto I (1st Earl of Minto ) 1807–1813

Why was the Act needed?

The Industrial Revolution in Britain created a larger trading class and stronger commercial lobbying. Rising demand to end the East India Company’s monopoly and open India trade to more British merchants. Utilitarian thinking grew—arguing for stronger state direction and a “reform/civilising” agenda. Church and missionary pressure to permit Christian missionary activities in India.

Key Features of the Charter Act, 1813

1. Trade & Company Monopoly

   Ended the EIC’s trade monopoly in India (trade opened to private British merchants). The Company retained monopoly over:

   • Tea trade
   • Trade with China

   The Company’s charter was renewed for 20 years, so Company rule continued.

2. Political Sovereignty

   Clearly asserted the British Crown’s sovereignty over the Company’s territories in India.

3. Missionaries & Settlement

   Christian missionaries were allowed to enter India and preach. British subjects were permitted to settle in India (under regulations).

4. Education

   Provision for promoting modern education in British Indian territories. Set aside ₹1 lakh per year for education.

5. Taxation Powers

   Authorised local governments in India to:

   • Impose taxes, and
   • Penalise those who refused to pay.
6. Company Finance & Administration

   EIC shareholders were assured a 10.5% dividend from Indian revenues (as per your note). The Board of Control was strengthened—its powers of superintendence and direction were more clearly defined.

7. Law-making & Parliamentary Oversight

   Regulations made by the councils of Madras, Bombay, and Calcutta had to be placed before the British Parliament. This helped define the constitutional position of British territories more clearly.

8. Separate Accounts

   Required separate accounting for:

   • Commercial profits/transactions, and
   • Territorial (administrative) revenues.