Question

how did the assumption of Diwani benefit the east India company?4 points

Answer 1

Mir Jafar died in 1765 and Clive declared that they should be nawabs themselves.
In 1765, the mughal emperor appointed the company as the Diwan of the provinces of Bengal.
The company had to buy most of the goods in India with gold and silver imported from Britain.
At this time Britain has no goods to sell in India.
The outflow of gold from Britain slowed after the battle of plassey, and entirely stopped after the assumption of Diwani.

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Answer 2

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.