Why did the British government restrict the EIC so little

Question

The EIC was so weak, the British government did not feel the need to get involved
The EIC was a large portion of the British economy, so the government feared that restricting it would harm the economy
The EIC threatened to overthrow the British government with its private military of sepoys
The British government had already heavily restricted the EIC, specifically in trade goods, military actions and trade agreements

Answer 1

The most accurate reason among the options provided for why the British government restricted the East India Company (EIC) so little is:

The EIC was a large portion of the British economy, so the government feared that restricting it would harm the economy.

During the 17th and 18th centuries, the EIC was a significant driver of trade and commerce for Britain, and its operations in India were integral to Britain's economic interests. The company contributed substantially to the British treasury and provided goods such as spices, textiles, and tea, which were highly valued back home. As a result, the British government often favored the EIC's autonomy to avoid jeopardizing these economic benefits.

While there were periods of restriction and regulation, particularly following events like the Indian Rebellion of 1857, the overall trend was one of limited direct intervention, as the company was considered crucial to Britain's imperial and economic ambitions.