Soon after the assumption of Diwani
by Company.
the economy of bengal collapsed.
Explain how ? (5)
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The assumption of Diwani benefited the East India Company in the following way: (i) The Diwani allowed the Company to use vast revenue resources of Bengal. (ii) The outflow of gold and silver which the company imported to buy goods in India was stopped. (iii) The revenue from Bengal now could be 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
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