Consider the following statements about 'the Charter Act of 1813':
- 1.It ended the trade monopoly of the East India Company in India except for trade in tea and trade with China.
- 2.It asserted the sovereignty of the British Crown over the Indian territories held by the Company.
- 3.The revenues of India were now controlled by the British Parliament.
Which of the statements given above are correct?
Answer & explanation
Answer: (a) 1 and 2 only
The 1813 charter opened the India trade to private British merchants while the Company kept its China (tea) trade monopoly, and it declared the Crown's sovereignty over the Company's territories. It did not hand India's revenues to Parliament: the Company went on governing and collecting revenue until the Crown took over in 1858.
- ✓ 1. In 1813 the Company's exclusive right to trade with India was removed and private traders were admitted, but its exclusive right to the China trade (chiefly tea) was retained until 1833.
- ✓ 2. The 1813 charter contained a clause asserting the Crown's undoubted sovereignty over all the Company's territories in India.
- ✗ 3. The Company kept its political and administrative role, including revenue administration; direct Crown control of Indian government came only in 1858.
Remember · Charter Act 1813: India trade opened to all British merchants (China/tea monopoly kept till 1833), Crown sovereignty asserted, missionaries allowed. Company rule itself ended only in 1858.
📘 Read it in NCERT: Class 8 Exploring Society: India and Beyond (Part 1), Ch 4 (practise this chapter)
Sources
- UK Parliament, Hansard (House of Commons, 19 April 1852): East India Company's Charter ↗ · reference work “private traders were admitted to a full and complete competition with them in regard to the trade with India. At the same time, the exclusive right of trading with China was retained by the Company.”
- UK Parliament, Living Heritage: East India Company and Raj 1785-1858 ↗ · reference work “Parliament allowed the Company to maintain its political and administrative duties in India, but the charter of 1813 included a clause asserting the Crown's undoubted sovereignty over all of the Company's territories”
- NCERT Class 8 · Exploring Society: India and Beyond (Part 1), Chapter 4 “in 1858, the British Crown took direct control of India from the East India Company, initiating the period of the British Raj.”
Question and answer: UPSC's official GS Paper I (2019, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·