5. What were the areas of conflict between the
Bengal nawabs and the East India Company?
6. How did the assumption of Diwani benefit the East
India Company?
Answers
The conflict between the Bengal nawabs and the East India Company started when the Nawabs refused to grant the Company concessions and demanded large tributes for the Company,s right to trade. The Nawabs also denied the Company any right to mint coins, and stopped it from extending its fortifications.
What were the areas of conflict between the Bengal Nawabs and the East India Company?
Ans. The areas of conflict between the Bengal nawabs and the East India Company are mentioned below:
The Bengal nawabs asserted their power and autonomy and refused to grant the company concessions.
They demanded large tributes for the Company’s right to trade.
They denied the Company any right to mint coins and stopped the Company from extending its fortifications.
Accusing the Company of deceit, they claimed that the Company was depriving the Bengal government of huge amounts of revenue and undermining the authority of the Nawab. It was refusing to pay taxes, writing disrespectful letters, and trying to humiliate the Nawab and his officials.
The Company on its part declared that the unjust demands of the local officials were ruining the trade of the Company, and trade could flourish only if the duties were removed.
How did the assumption of Diwani benefit the East India Company?
Ans. In 1765, the Mughal emperor appointed the Company as the Diwan of the provinces of Bengal. The Diwani right to the East India Company benefited it in several ways:
The Diwani allowed the Company to use the vast revenue resources of Bengal.
Trade was monopolised by the East India Company. The company began direct plunder of India’s wealth.
The Company expenses were being financed from the Revenues of India. These revenues were used to purchase cotton and silk textiles in India, maintain Company troops, and meet the cost of building the Company fort and offices at Calcutta.
To monopolize trade & dictate terms. The company used its political power. They could impose their own prices that had no relation to the costs of production.
The company used revenue of Bengal to finance exports of Indian goods.