Question

why did the company decided to improve agriculture in Bengal?

Answer 1

On 12 August 1765, Robert Clive, on behalf of East India Company, accepted the Diwani of Bengal from the then Mughal ruler.

The Company became the chief financial administrator of the territory under its control, and so the company had to think and plan the organisation of Bengal in a such a way that it could earn maximum profit out of the territory, profits that could be used to finance their businesses and wars.

As a foreign power, the Company realised that it needed to manage the local rulers in India's villages, because they were respected by the locals and removing them might anger the common people.