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How Did the Assumption of Diwani Benefit the East India Company? - Social Science

Short Note

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 forts and offices at Calcutta).

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NCERT Class 8 Social Science History - Our Pasts 3
Chapter 2 From Trade to Territory - The Company Establishes Power
Let's Discuss | Q 6 | Page 25
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