There were many small and large states in India. There was no unity among them. Consequently, Indian states were ruined by the British policy of ‘Divide and Rule’. Many native kings became slaves of the British by accepting Lord Wellesley’s Subsidiary Alliance. In the time period of seven years, Wellesley expanded the company by Subsidiary Alliance and made British rule supreme in India.
The kings who accepted Subsidiary Alliance felt safe and became irresponsible. Consequently, there was absolute mismanagement of states. Dalhousie annexed many states by Annexation policy and established British rule over them. He defeated some states in battle and did not allow childless kings to adopt a son. Their states were also annexed and British rule was established. Thus, Dalhousie established British rule on the whole of India. This is how the British benefitted a lot due to Subsidiary Alliance and Annexation policies.