Which key principle was institutionalized by Pitt's India Act, 1784?
Show answer & explanation
Correct answer: C
Explanation
Solution: The correct answer is Dual control between Company and the British Government.
Explanation:
☛ Pitt's India Act, 1784 established a system of dual control over British possessions in India.
☛ It distinguished between the commercial and political functions of the East India Company.
☛ The Court of Directors was allowed to manage commercial affairs, while a new body called the Board of Control was created to manage political and military affairs.
☛ Through this Act, Company territories in India were for the first time called the 'British possessions in India'.
Extra Exam-Relevant Facts:
☛ The Act was named after the British Prime Minister William Pitt the Younger.
☛ The Board of Control consisted of six commissioners, including the Chancellor of the Exchequer and a Secretary of State.
☛ The Governor-General's Council in Calcutta was reduced from four members to three members, including the Commander-in-Chief.
☛ This system of dual government (Board of Control and Court of Directors) continued until the Government of India Act, 1858.
Important One-Liners for Upcoming Exams:
☛ Which British Prime Minister introduced Pitt's India Act? → William Pitt the Younger
☛ Which body was created under Pitt's India Act, 1784 to handle political affairs? → Board of Control
☛ Under which Act were the Company's territories first termed 'British possessions in India'? → Pitt's India Act, 1784
☛ How many members were there in the Governor-General's Council after Pitt's India Act? → Three members
☛ When was the dual system of control introduced by Pitt's India Act completely abolished? → Government of India Act, 1858