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Question
Answer the following question in one or two words/sentences:
How did the Subsidiary Alliance impact the economy?
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Solution
Awadh had signed a Subsidiary Alliance with Wellesley. He had to protect the nawab from external invasions and internal rebellions. It made the nawabs complacent and unconcerned about the affairs of the state. The payment of annual subsidies to the Company exhausted the state treasury.
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