67
Question
How did
the assumption of Diwani benefit the East India Company?
How did the assumption of Diwani benefit the East India Company?
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Solution
On
being appointed the Diwan of the provinces of Bengal, the East India
Company acquired greater
power and authority. It was free to make use of the vast resources of
Bengal. Till then, in order to buy goods, it had to import gold and
silver from Britain. After the assumption of the Diwani, the Company
could use the revenues from Bengal to finance its expenses (which
included purchasing cotton and silk textiles in India, maintaining
its troops, and building the Company fort and offices at Calcutta).
On being appointed the Diwan of the provinces of Bengal, the East India Company acquired greater power and authority. It was free to make use of the vast resources of Bengal. Till then, in order to buy goods, it had to import gold and silver from Britain. After the assumption of the Diwani, the Company could use the revenues from Bengal to finance its expenses (which included purchasing cotton and silk textiles in India, maintaining its troops, and building the Company fort and offices at Calcutta).
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