3 In what way the Diwani Rights of Bengal turned out to be a boon for British EIC in India?
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Answer:
Their final humiliation came in 1765 when the Mughal Emperor Shah Alam granted the diwani of Bengal - the right to collect the land revenue - to the East India Company. From then on, the diwani became the main source of British revenue from India.
Answer :
After the death of Mir Jafar, in 1765, the then Mughal Emperor Shah Alam II granted the Diwani rights of the provinces of Bengal to the Company. This was a major breakthrough for the Company because Diwani allowed it to use the vast revenue resources of Bengal.
From the early eighteenth century, the Company had buy most of the goods in India by paying in gold and silver which were imported from Britain. This was putting a huge drain on the treasury in Britain.
After the Battle of Plassey, the outflow of gold from Britain slowed down. This outflow completely stopped after the Company got the Diwani of Bengal.