Question

In 1765, the Mughal emperor appointed the Company as the Diwan of the provinces of Bengal. How did the East India Company make use of this new power?

• A. The Company expanded trade.
• B. Revenue was diverted to finance wars.
• C. Income was generated within India for trade.
• D. All of the above.

Answer 1

The correct option is D All of the above.

After death of Mir Jafar in 1765, Robert Clive forced the Mughal emperor to appoint the Company as Diwan of Bengal, so that the British could make use of the resources there. This helped the East India Company to expand trade and to divert revenue for wars.