How did the assumption of diwani benifit the east Indian company?
Answers
Answer: The assumption of diwani helped the company in the following ways:-
- To use the revenue and resource of Bengal to finance its expenses in India.
- To use the taxes collected to purchase raw material for trade.
- They could meet the cost of building the company's post and offices in India.
- It reduced the outflow of gold and silver fro England.
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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.