Social Sciences, asked by Upayan552006, 11 months ago

how did the assumption of Diwani benefit the East India Company​

Answers

Answered by padhimayank
1

In 1765, the Mughal emperor appointed Company as Diwan of Bengal, Bihar and Orissa. The Diwani gave British right to collect revenue and administer justice in this region. From the early eighteenth century, the company had to purchase most of the goods in India in exchange of gold and silver imported from Britain as they had no other goods to sell in India.  

But after assumption of Diwani, the company started to use collected revenues from Bengal for his own colonial interests and completely neglected Bengal. It purchased goods in India with these revenues, as a result, outflow of gold and silver from Britain got completely stopped. Now revenues from India could finance Company expenses, be used to purchase cotton & silk textiles in India, maintain troops, and meet the cost of building the company fort and offices at Calcutta.  Hence, Diwani proved to be highly beneficial for the Company.  

Answered by Anonymous
22

\large\red{\textbf{\underline{\underline{Hey :- }}}}

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

Thanks !!

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