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Ruling the
Countryside
Page 2


Ruling the
Countryside
Significant Event: On August 12, 1765, the Mughal
emperor appointed the East India Company as the
Diwan of Bengal, a pivotal moment in British colonial
history.
Grand Imagery: The event, likely occurring in Robert
Clive's tent, was depicted majestically in paintings
commissioned by Clive, symbolizing the grant of
Diwani as a monumental event in British imagination.
New Responsibilities: As Diwan, the Company
became the chief financial administrator of the
territory, tasked with organizing revenue resources to
meet its growing expenses.
Balancing Act: The Company had to navigate
administering the land while ensuring it could procure
necessary products and maintain its trading
operations.
The Company Becomes the Diwan
Page 3


Ruling the
Countryside
Significant Event: On August 12, 1765, the Mughal
emperor appointed the East India Company as the
Diwan of Bengal, a pivotal moment in British colonial
history.
Grand Imagery: The event, likely occurring in Robert
Clive's tent, was depicted majestically in paintings
commissioned by Clive, symbolizing the grant of
Diwani as a monumental event in British imagination.
New Responsibilities: As Diwan, the Company
became the chief financial administrator of the
territory, tasked with organizing revenue resources to
meet its growing expenses.
Balancing Act: The Company had to navigate
administering the land while ensuring it could procure
necessary products and maintain its trading
operations.
The Company Becomes the Diwan
Cautious Approach: Recognizing the need for
caution as an alien power, the Company aimed
to pacify former rulers of the countryside while
asserting its authority.
Control and Coexistence: While seeking to
control local powers, the Company understood
the importance of coexisting with those who
held authority and prestige.
Challenges and Solutions: The Company
devised strategies to colonize the countryside,
organize revenue resources, redefine rights,
and cultivate desired crops, all while
maintaining stability and cooperation.
The Company Becomes the Diwan
Page 4


Ruling the
Countryside
Significant Event: On August 12, 1765, the Mughal
emperor appointed the East India Company as the
Diwan of Bengal, a pivotal moment in British colonial
history.
Grand Imagery: The event, likely occurring in Robert
Clive's tent, was depicted majestically in paintings
commissioned by Clive, symbolizing the grant of
Diwani as a monumental event in British imagination.
New Responsibilities: As Diwan, the Company
became the chief financial administrator of the
territory, tasked with organizing revenue resources to
meet its growing expenses.
Balancing Act: The Company had to navigate
administering the land while ensuring it could procure
necessary products and maintain its trading
operations.
The Company Becomes the Diwan
Cautious Approach: Recognizing the need for
caution as an alien power, the Company aimed
to pacify former rulers of the countryside while
asserting its authority.
Control and Coexistence: While seeking to
control local powers, the Company understood
the importance of coexisting with those who
held authority and prestige.
Challenges and Solutions: The Company
devised strategies to colonize the countryside,
organize revenue resources, redefine rights,
and cultivate desired crops, all while
maintaining stability and cooperation.
The Company Becomes the Diwan
Company as Diwan: Despite being
appointed as Diwan, the Company
maintained its identity as a trader,
prioritizing revenue to facilitate trade.
Lack of Regular Assessment: Avoided
setting up systematic assessment and
collection, aiming to maximize revenue for
procuring goods like fine cotton and silk
cloth at lower prices.
Doubling of Purchases: Within five years,
Company's purchases of goods in Bengal
doubled, financed by locally collected
revenue.
Revenue for the Company
Page 5


Ruling the
Countryside
Significant Event: On August 12, 1765, the Mughal
emperor appointed the East India Company as the
Diwan of Bengal, a pivotal moment in British colonial
history.
Grand Imagery: The event, likely occurring in Robert
Clive's tent, was depicted majestically in paintings
commissioned by Clive, symbolizing the grant of
Diwani as a monumental event in British imagination.
New Responsibilities: As Diwan, the Company
became the chief financial administrator of the
territory, tasked with organizing revenue resources to
meet its growing expenses.
Balancing Act: The Company had to navigate
administering the land while ensuring it could procure
necessary products and maintain its trading
operations.
The Company Becomes the Diwan
Cautious Approach: Recognizing the need for
caution as an alien power, the Company aimed
to pacify former rulers of the countryside while
asserting its authority.
Control and Coexistence: While seeking to
control local powers, the Company understood
the importance of coexisting with those who
held authority and prestige.
Challenges and Solutions: The Company
devised strategies to colonize the countryside,
organize revenue resources, redefine rights,
and cultivate desired crops, all while
maintaining stability and cooperation.
The Company Becomes the Diwan
Company as Diwan: Despite being
appointed as Diwan, the Company
maintained its identity as a trader,
prioritizing revenue to facilitate trade.
Lack of Regular Assessment: Avoided
setting up systematic assessment and
collection, aiming to maximize revenue for
procuring goods like fine cotton and silk
cloth at lower prices.
Doubling of Purchases: Within five years,
Company's purchases of goods in Bengal
doubled, financed by locally collected
revenue.
Revenue for the Company
Economic Impact: Artisans abandoned
villages, peasants struggled to meet
demands, and there was a decline in
artisanal production and agricultural
cultivation.
Devastating Famine: In 1770, Bengal faced
a catastrophic famine, resulting in the loss
of approximately ten million lives and
wiping out about one-third of the
population.
Revenue for the Company
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