Question

How did the assumption of Diwani benefit the East India Company?​

Answer 1

Answer:

It was free to make use of the vast resources of Bengal. After the assumption of the Diwani, the Company could use the revenues from Bengal to finance its expenses (which included purchasing cotton and silk textiles in India, maintaining its troops, and building the Company fort and offices at Calcutta).

Answer 2

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 helped the Company to use the vast revenue resources of Bengal.

b. The East India Company started getting rich through trades.

c. Revenue from Bengal was used export goods from India.