7. The Bengal economy declined after the company was appointed as Diwan of that
province. (True/False) Also give any three reasons. (Please do not exceed 3 points)
Answers
Answer:
True
Explanation:
.The company after becoming the diwani of Bengal now no longer had to import gold and iron to trade with Bengal and instead could trade using the income from collecting taxes.Even then the company forced people to pay high taxes to maximise their profits.
.Peasants were unable to pay the dues, and weavers would weave the best clothes in the world and would export but now the britishers forced them to pay high duties to sell their clothes abroad and only few people could buy their clothes and weavers could not make any profits and the company forced them to sell their clothes to the Company at low prices by force. As a result of such exploitative practices and high prices the economy declined.
.Peasants found it difficult to grow plants and own decent sized land because of the taxes and many stopped growing crops and went to the cities in search of better jobs. As a result there was a famine in Bengal in 1770 that killed 10 million people, a third of Bengal's population.