Question

how did the assumption of diwani benefit the east india company?

Answer 1

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

Answer 2

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

b. The monopoly of the East India Company on the trade started.

c. Revenue of Bengal was used to export Indian goods out of the country.

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