The Pitt’s India Act of 1784, introduced by British Prime Minister William Pitt, was passed by parliament to address the earlier Regulating Act of 1773’s shortcomings. The act aimed to place the East India Company’s rule in India under the control of the British government. This led to a dual authority over British possessions in India by both the British government and the Company. This act marked the beginning of a new era in British colonial policy and its influence over Indian affairs. Ultimately, the power to make the final call lay squarely with the government.

Pitt’s India Act of 1784 Provisions 

• • Dual Governance system:  The Act established a system of dual control of British India between the East India Company and the British Government. A Board of Control was created to exert greater oversight of the political functions of the East India Company and operated jointly with the Court of Directors which managed commercial affairs only. This helped streamline governance and reduced the arbitrary powers of the East India Company.  
  • Representation: The British government was represented by the Board of Control, while the company was represented by the Court of Directors.

• Change in composition: The strength of the Governor-General’s council was reduced to three members, one of whom would be the Commander-in-Chief of the British Crown’s army in India.

• Disclosure of Property: All civil and military officers were required to disclose their property in India and Britain within two months of joining.

Pitt’s India Act of 1784 Significance

Operational Function: The Act differentiated between the East India Company’s commercial and political activities. The Board of Control was responsible for political and military matters, while the Court of Directors handled commercial functions.

• British possessions: The Company’s territories in India were referred to as the ‘British possessions in India’ for the first time. This marked a shift in the British approach from commercial exploitation to a more organized and bureaucratic form of governance, paving a way for future colonia administration in India. 

• Direct control: The British government assumed direct control over the administration of India. Thus, the company became subordinate to the British government. 
• Crown’s Authority: The British Crown established its authority over civil and military administration in India. Commercial activities continued to be controlled exclusively by the Company.

Shortcomings of Pitt’s India Act of 1784

Although the Pitts Act aimed to address shortcomings of the Regulating Act, it introduced several of its own shortcomings: 

• Lack of clarity: The margins between government control and the company’s powers were unclear. Also, the boundary between responsibility of the board of control and the British crown was unclear. 

• Dual obligation: The Governor-General served the interests of the East India Company and the British Crown.

 The Amending Act of 1786 

Background: The Amending Act of 1786 

The Act was established to fulfill Lord Cornwallis’s request to take on the role of Governor-General.

Provisions of The Amending Act of 1786 

• Empowerment of Governor-General: The act granted the Governor-General powers that combined the roles of both the Governor-General and the commander-in-chief. 
• Exceptional Power: Lord Cornwallis was granted the authority to override the council’s decisions in special cases. Later, this power was extended to all Governor Generals.