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


In 1765, the Mughal emperor appointed Company as Diwan of Bengal, Bihar and Orissa.


● Diwani gave the British Rights to collect the revenue and also allowed them to use the vast revenue resources of Bengal.


● Formerly, it had to import gold and silver from Britain in large quantities to buy most of the goods in India. At that time, Britain had no goods to sell in India which could fetch it finances to buy Indian goods.


● So the Diwani not only helped it to meet administrative expenses but also enabled it to buy Indian goods to be exported to Britain.


● It also help them to strengthen their military power.


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