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The Pitt’s India Act of 1784 was significant because it:

1. Established the Supreme Court in Calcutta.
2. Distinguished between the commercial and political functions of the Company.
3. Ended the Company's monopoly over tea trade.
4. Introduced the Portfolio system.

Correct answer: Distinguished between the commercial and political functions of the Company.

Solution

The Pitt’s India Act of 1784 was important because it brought the East India Company under greater British government control and clearly separated its commercial and political functions. It did not establish the Supreme Court or introduce the portfolio system.

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