Discuss about the system of trade before the company became the diwan of Bengal
Answers
Ruling the Countryside: East India Company in Bengal
Bengal was India’s most fertile and profitable land during the 18th and 19th century. The British, and the East India Company, in particular, profited greatly by trading in Bengal. The British began their political control over India with their influence in Bengal. Let us take a look.
Explanation:
Robert Clive, later known as Clive of India was the first British governor of Bengal. In 1765 the Mughal Emperor of India under duress made the East India company the Diwan of Bengal. But the East India Company were traders not administrators and they had no idea how to rule. And so began the decades of economic and social crisis for the people of Bengal.
East India Company had many challenges to tackle one of which was tackling the locals. They had powers to control them, purchasing and selling things which they needed, and generate revenues by being the new powers in an alien land.
East India Company started buying cotton and silk at a cheap rate by importing gold and silver from Britain and in five years the price doubled of the goods they purchased and they used that revenue to export. Hence, this resulted in the downfall of Bengal Financial state.
The Need to Improve Agriculture
In 1793 company came up with a Permanent Settlement. In this situation, they made Rajas as Zamindars.They collected rent from the poor section and thereafter pay to Company. The amount which was collected was fixed and it was decided that the amount remain same in future.
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