The Act for Better Government of India, 1858 – Free Modern History Notes for UPSC 2025

In the annals of Indian history, the year 1858 stands out as a watershed moment—a time when the course of governance in the Indian subcontinent underwent a monumental shift. This pivotal year saw the enactment of the Act for Better Government of India, also known as the Government of India Act 1858. The Act was not merely a legal document; it symbolized the end of the rule of the East India Company and the beginning of direct British rule in India. The significance of this act reverberated across the social, political, and economic fabric of India, setting the stage for profound changes that would shape the destiny of the nation.

The UK Parliament made a law called the Government of India Act 1858, passed on August 2, 1858. It was introduced by the UK Prime Minister, Lord Palmerston, to transfer the power of governing India from the East India Company to the British Crown. This was because the existing system had many problems. However, before the bill could be passed, Lord Palmerston had to resign because of another issue.

Later, the 15th Earl of Derby, Edward Stanley, who was supposed to be the first Secretary of State of India, introduced a different bill called “An Act for the Better Governance of India,” which was passed on August 2, 1858.

Background

When the mutiny of 1857 erupted in India, it intensified the resentment in England towards the rule of the East India Company. Although the mutiny was suppressed, the fear it caused in London convinced the British crown to take direct control of India’s administration.

On September 1, 1858, the directors of the East India Company held their final meeting and issued their last instructions to their employees in India. They emphasized that while Britain was now directly governing India, it should remember the significant role of the East India Company and the lessons learned from its success.

Government of India Act 1858

1. End of East India Company’s Rule: The Act led to the collapse of the East India Company and the transfer of control of Indian colonies to the British Crown.
2. Rule in the Name of Queen Victoria: The Act stated that Queen Victoria would administer British Indian possessions, later becoming Empress of India.
3. Elimination of Court of Directors and Board of Control: The Act transferred the Company’s powers to the Secretary of State for India, who would be a member of the British Parliament and the Prime Minister’s cabinet.
4. Introduction of Secretary of State and Council: The Secretary of State for India would facilitate communication between the British and Indian governments. Assisted by a council of 15 members, the Secretary had significant powers.
5. Appointment of Governor-General and Viceroy: The Act established the positions of Governor-General and Viceroy, united to minimize issues.
6. Formation of Executive Council: The Viceroy was aided by an Executive Council in administrative tasks.
7. Abolition of Dual Government and Doctrine of Lapse: The Act repealed the dual government system and the doctrine of lapse, which allowed the British to annex states without a male heir.
8. Introduction of Indian Civil Services: The Act established the Indian Civil Services, responsible for administering the country. Indians were allowed to join the military.
9. Status of Indian Princes and Chiefs: Over 560 Indian princes and chiefs retained their independence, acknowledging British suzerainty.

Features of Government of India Act 1858

1. Transfer of Power: The Act shifted governance of India from the East India Company to the British Crown.
2. Governor-General: The Viceroy, appointed by the British Crown, replaced the Governor-General.
3. Indian Civil Services: The Act introduced competitive examinations for Indians to join the prestigious Indian Civil Services.
4. Legislative Councils: Provincial legislative councils were established, with limited Indian representation.
5. Financial Control: Legislative councils had limited control over finances.
6. Legal Reforms: The Act established high courts and district courts.
7. Indian Council: Assisted the Viceroy in administration.
8. End of East India Company’s Rule: The Act dissolved the East India Company.
9. Direct British Rule: India became a formal part of the British Empire.

In conclusion, the Government of India Act 1858, also known as the Act of Good Governance, marked a significant turning point in British India’s administration. The Act transferred administrative control from the East India Company to the British Parliament. This effectively transformed India into British colonies, ending the dual government system proposed by the Pitt’s India Act of 1784.

Also Read: The Charter Act of 1853.