how did the assumption of Diwani benefit the East India company?
Answers
Diwani rights are the rights that the British acquired to collect their own revenues and have the authority to decide on civil cases. This right benefited East India Company in several ways:
a. It allowed the Company to use the vast revenue resources of Bengal.
b. The monopoly of the East India Company on the trade started.
c. Revenue of Bengal was used to export Indian goods out of the country.
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.