How did the assumption of Diwani benefit the East India Company?
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Answered by
47
Hey!!
Answer. The Mughal emperor, in 1765, appointed the Company %s the Diwan of the provinces of Bengal. The Diwani allowed the Company to exploit the vast revenue resources of Bengal. This solved a major problem that the company had earlier faced. Although its trade had expanded, it had to buy most of the goods in India with gold and silver imported from Britain. The overflow of gold from Britain stopped after the assumption of Diwani. Now revenue from India could finance Company expenses. 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.
Answer. The Mughal emperor, in 1765, appointed the Company %s the Diwan of the provinces of Bengal. The Diwani allowed the Company to exploit the vast revenue resources of Bengal. This solved a major problem that the company had earlier faced. Although its trade had expanded, it had to buy most of the goods in India with gold and silver imported from Britain. The overflow of gold from Britain stopped after the assumption of Diwani. Now revenue from India could finance Company expenses. 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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Answered by
70
the assumption of Diwani benefitted the East India Company as before this the British had to buy goods and textiles from India by giving gold and silver imported from Britain. But after the battle of Buxar the British started collecting taxes from India and used the revenue to buy textiles and goods from India and after the assumption of India they totally stopped the import of gold and silver from Britain..
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