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Educated at the High School of Edinburgh, David Anderson went to India in 1767 as a cadet. He eventually rose to the position of Chief of the Council of Revenue, and was appointed Ambassador to Scindia's Court. He took active part in the negotiation of the Mahratta Treaty. When he returned to England in 1785, he befriended Warren Hastings (Governor-General of British India) on the ship; the two exchanged much correspondence. Anderson received Freedom of the City of Edinburgh for his services in India, and purchased the Estate of St. Germains, East Lothian in 1780.
In 1788, he married Christian Findlay [d. 1824], of Drummore, niece of the Governor of Gibraltar, Gen. Sir George Don. They had three sons.