Question

"The Diwani allowed the company to use the vast revenue resources of Bengal". Explain.

Answer 1

Dear student,

The Diwani allowed the company to use the vast revenue resources of Bengal. Although the trade of the Company expanded, but previously it had to purchase most of the goods in India with gold and silver imported from Britain. This overflow of gold and silver stopped after the Company was granted the Diwani. Now, the Company expenses could be met through revenue collected from India. These revenue was utilised to purchase cotton and silk textiles in India, maintain the army admininistration and troops, built the Company fort and offices in Calcutta.

Regards.