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- It ended the monopoly of the EIC in India except the company’s monopoly in “trade with China” and “trade in tea with India”. Thus, trade with India for all commodities except tea was thrown open to all British subjects. This lasted till 1833 when the next charter abolished the trade of the company.
- It asserted the sovereignty of the British Crown over the Company’s territories in India. ( Constitutional position of British territories in India explicitly defined for first time)
- It allowed the Christian missionaries to come to India for the purpose of enlightening the people.
- It provided for the spread of western education among the inhabitants of the British territories in India. (1 Lakh rupee for education in native India)
- It authorized the Local Governments in India to impose taxes on persons. They could also punish the persons for not paying taxes.