UPSC Prelims 2006 Q126: Modern History – Constitutional Developments & British Plans (1909 - 1947)
Consider the following statements:
1. The Charter Act 1853 abolished East India Company’s monopoly of Indian trade.
2. Under the Government of India Act, 1858, the British Parliament abolished the East India
Company altogether and undertook the responsibility of ruling India directly.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (b) 2 only
Explanation
Charter Act of 1853 and Government of India Act, 1858
| Statement | Verdict | Reason |
|---|---|---|
| 1. The Charter Act 1853 abolished the Company's monopoly of Indian trade | False | The Company's trade monopoly ended earlier: 1813 (except tea and China) and 1833 (all trade) |
| 2. The Government of India Act 1858 abolished the East India Company and the Crown took direct rule | True | After the 1857 revolt, Parliament transferred rule to the Crown |
Only statement 2 is correct.
Answer: (b) 2 only.
Why each option is right or wrong
- (a) Incorrect. Statement 1 is false; the trade monopoly had already ended by 1833.
- (b) CORRECT. The 1858 Act abolished the Company and placed India under the Crown.
- (c) Incorrect. Statement 1 is false, so both cannot be correct.
- (d) Incorrect. Statement 2 is true, so it is not 'neither'.
Key point
The Company's trade monopoly was abolished by the Acts of 1813 and 1833, not 1853, while the 1858 Act ended Company rule altogether.
Remember
The 1858 Act transferred India to the Crown; the 1853 Act did not end trade monopoly.
Common mistakes
- Giving the 1853 Act credit for ending the trade monopoly.
- Confusing the 1833 Act's end of trade with the 1858 end of rule.
- Forgetting that the Crown took over after the 1857 revolt.
Exam tip
1813 ended the trade monopoly (except tea, China); 1833 ended all trade; 1858 ended Company rule.
Sources
- Charter Act, 1813
- Charter Act, 1833
- Government of India Act, 1858