Question

How did the assumption of Diwani benefit the East India Company?

Answer 1

Instructions:

Mention that the Company became the custodian of the revenue of Bengal after the assumption of Diwani. Mention the use of the revenue.

Solution:

1. The Company became the custodian of the revenue of Bengal after the assumption of Diwani.
2. This revenue could be used to
   • pay for the Company’s war expenses in different parts of India
   • finance the Company's trade