Question

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

Answer 1

Answer:

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

• The conflicts between the Nawabs of Bengal and the Company boosted through the early eighteenth century.
• The East India Company manipulated the being boons and sought further concessions.
• To gain the right to duty free trade, the British forced the Mughal emperor Aurangazeb to issue a farman.
• The farman issued by Aurangazeb only gave them the right to duty free trade, but officers who were involved in the private trade had to pay duty.
• There was an enormous loss in earnings for Bengal as they refused to pay.
• The Bengal Nawabs asserted their autonomy and power after the death of Aurangazeb.
• These Nawabs stopped the bastions of the East India company, stopped the rights to mint coins, demanded the East India company to pay paeans, and refused to grant concessions to the company.
• They said the Nawab authority was undermined as Bengal lost earnings due to the manipulations of the East India Company.
• The East India Company tried to cheapen the officers of the Nawabs, wrote discourteous letters, and refused to pay levies to the Nawab.
• The East India Company claimed that trade could only flourish if the duties were abolished, and they claimed that due to illegal demands of the original officers the trade was poorly affected.
• The East India Company claimed that if the trade had to be expanded also it had to rebuild the castles, buy up the town lets, and increase the size of its agreements.
• After the Battle of Plassey in 1757, the British power started adding in India.
• The East India Company was appointed as the Diwan of the businesses in Bengal in 1765 by the Mughal emperor.
• As a result, vast coffers of Bengal were utilised by the Company.

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