The treaty of Amritsar is a landmark in the history of Ranjit Singh.It provided the basis for Anglo-Sikh relations between 1809-1839 A.D.The following considerations led Ranjit Singh to yield to the military and diplomatic pressure of the British and sign the Treaty of Amritsar in 1809.

1. Ranjit Singh was convinced of the invincibility of the British army.He was surprised to see the admirable conduct of a small band of Metcalfe’s sepoys in a recent affray with a large number of Akalis at Amritsar.He had also seen how Sindhia and Holkar’s inspite of possessing numerically superior forces had fallen.Ranjit Singh had gone to Lord Lake’s camp at Beas in disguise and was greatly impressed to see with his own eyes the strength, discipline and organisation of the British forces.Hence he concluded that an armed encounter with the British under these circumstances would prove disastrous to him.
2. Ranjit Singh was “conscious of his own inability to meet the British power at that moment”.He knew his limitations.He had rightly observed that not withstanding the best efforts of Diwan Mokham Chand to strengthen his army,he was too weak to resist the British at that stage.Moreover, his house was not yet in order.He had so far brought only a small portion of the Punjab under his control and that too had not yet been fully consolidated.It would be thus a sheer folly on his part to declare war against the British who had inexhaustible resources at their command and who had by this time become practically the masters of whole of India.Ranjit Singh’s armed conflict with the British under these circumstances might have proved disastrous and deprived “India of a bright chapter in its history and the Khalsa its crowning glory in the days to come.”
3. The danger of Franco-Russian invasion of India, which hung like a menancing cloud had completely disappeared by that time.This emboldened the British to take a firm and determined stand.They no longer required Ranjit Singh’s friendship.Ranjit Singh, in the beginning of negotiations with Metcalfe, tried to exact some favourable terms from the British.But when he found them adamant, like a shrewd statesman, he accepted the compromise and made the best of a bad bargain.
4. Lastly, Ranjit Singh also feared that in case of war with the British, the latter might extend offer of protection to his rival Muslim chiefs of Kasur, Jhang, Multan etc. and enter into negotiations with the Afghan rulers of Peshawar and Kashmir.Moreover, most of his Sardars who had partially accepted the suzerainty were jealous of his ascendency and were awaiting an opportunity to rise in revolt against him and perhaps in the event of Ranjit Singh’s defeat at the hands of the British, they might transfer their allegiance to the British.

Consequently, a treaty was concluded between Ranjit Singh and the British in April 1809 at Amritsar.The famous treaty of Amritsar contained the following important provisions:

• Perpetual friendship shall subsist between the British Government and the state of Lahore, shall be considered with respect by the former, to be on the footing of the most favoured powers, the British Government having no concern with the territories and subjects of the Raja to the north-ward of the river Satluj.
• The Maharaja retained the territories he had possessed on the left bank of the Satluj before the coming of Metcalfe but “he was never to maintain in the territory which he occupies on the left bank of river Satluj more troops than are necessary for the maintenance of law and order in the country, nor commit or suffer any encroachment on the possessions or rights of the chiefs in its vicinity.
• In the event of violation of any of the preceding Articles or of departure from the rules of friendship on the part of friendship on the part of either state, this treaty shall be considered to be null and void.