Question

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

Answer 1

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On being appointed the Diwan of the provinces of Bengal, the East India Company acquired greater power and authority. After the assumption of the Diwani, East India Company was benefited in several ways as mentioned below:

(i) It allowed the Company to use the vast revenue resources of Bengal.

(ii) Now, trade was fully controlled by the East India Company.

(iii) Company used the revenues from India to finance its expenses like to purchase cotton and silk textiles in India, maintain Company troops, and meet the cost of building the Company fort and offices at Calcutta.

(iv) Revenue of Bengal was used to finance exports of Indian goods.

Answer 2

Explanation:

(i)The Diwani allowed the Company to exploit the vast revenue resources of Bengal. ... Now revenue from India could finance Company expenses. (v)These revenues they 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.

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