Ch-9 of dav public school
History,sst
E, 5 . How did the assumption of Diwani benifit the East India Company?
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Answers
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.