Question

What power did east India company assume with the right to diwani

Answer 1

Their final humiliation came in 1765 when the Mughal Emperor Shah Alam granted the diwani of Bengal - the right to collect the land revenue - to the East India Company. From then on, the diwani became the main source of British revenue from India.

Answer 2

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.