soon after the assumption of Diwani by the company the economy of the Bengal collasped explain how
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Answer:
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
Explanation:
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under the diwani of the company the artisans began deserting the villages because they were forced to sell their goods at cheaper rate.also the peasants were unable to pay the dues being demanded by the company administration which was obsessed with increasing its own income.gradually artisanal production reduced significantly and agricultural cultivation began to show signs of a collapse.In 1770 Bengal suffered a terrible famine which killed 10 million people and wiped out about one third of the village population.this further increased the pressure on the bengal economy which was already reeling under the inefficient rule of the company.
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