How did the grant of Diwani by the Mughal Emperor benefit the Company?
Answers
The import of gold and silver from Britain slowed after the battle of Plassey and completely stopped after gaining Diwani.
Now the company could use the vast revenue resources of Bengal to build forts, buy cotton silk, maintain army troops, etc..
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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.