Before Indian independence, numerous agreements were made with the British, including the Treaty of Lahore and the Treaty of Amritsar (1846) after the Anglo-Sikh Wars, which established British dominance and the creation of the princely state of Jammu and Kashmir. Another significant agreement was the Financial Agreement of 1947, which temporarily managed India’s sterling balances after independence, while various subsidiary alliances were used for indirect rule over princely states.
Key agreements
Treaty of Lahore (1846):
This treaty ended the First Anglo-Sikh War, forcing the Sikhs to cede territory and reduce their army, thereby accepting British dominance.
Treaty of Amritsar (1846):
This followed the Treaty of Lahore and involved the British selling Kashmir to Maharaja Gulab Singh, creating the princely state of Jammu and Kashmir.
Financial Agreement (1947):
This agreement, signed just before independence, dealt with the temporary arrangement of India’s sterling balances held in London, establishing accounts for managing these funds.
Subsidiary Alliances:
Starting in the late 18th and early 19th centuries, the British East India Company entered into these agreements with Indian rulers. The rulers would cede some autonomy in exchange for protection, allowing the Company to exercise indirect rule.
Doctrine of Lapse:
Though not an agreement, it was a policy based on the subsidiary alliances. It allowed the British to annex any state that lacked a direct male heir, leading to the annexation of several territories like Jhansi and Nagpur.
Standstill Agreement (1947):
In the lead-up to independence, this was an agreement signed by most princely states with the new Indian government. It was intended to maintain the status quo in terms of pre-existing arrangements until a final decision was made on accession to India or Pakistan.
The Mountbatten plan led to the royal assent for the approval of the Indian Independence Act 1947.
Lord Mountbatten, the last Viceroy of India, came up with a plan under which he proposed that the provinces be declared independent successor states.












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