In England, the business interests were pressing for an end to the Company’s monopoly over trade in India because of a spirit of laissez-faire and the continental system by Napoleon by which the European ports were closed for Britain.
The 1813 Act sought to redress these grievances by revoking Company’s monopoly over trade in India. But the Company retained the trade with China and the trade in tea.
The Company was to retain the possession of territories and the revenue for 20 years more, without prejudice to the sovereignty of the Crown. (Thus, the constitutional position of the British territories in India was defined explicitly for the first time.)
A sum of one lakh rupees was to be set aside for the promotion of Education among the natives of India, every year. (This was an important statement from the point of State’s responsibility for education).
Christian missionaries were also permitted to come to India and preach their religion.
The Act empowered the local governments to impose taxes on the persons subject to the jurisdiction of the Supreme Court.