The Treaty of Allahabad was signed in 1765 between Shah Alam II, the Mughal Emperor, and Robert Clive, the representative of the East India Company. This treaty marked a significant turning point in the history of India, as it granted the East India Company Diwani rights on behalf of the emperor.

Background
Before the treaty was signed, the East India Company had already established a strong foothold in India, with its trading posts and military power. The company had also gained control over Bengal, Bihar, and Orissa, and had established its own administration in these regions.

However, the company still had to pay tributes to the Mughal Empire and the Nawabs of Bengal for the right to trade and operate in their territories. The company also faced competition from other European powers, such as the French and the Dutch, who were also vying for control over India's lucrative trade.

The Treaty
The Treaty of Allahabad was signed after the decisive victory of the East India Company in the Battle of Buxar against the combined forces of the Mughal Empire, the Nawab of Bengal, and the Nawab of Awadh. The treaty granted the East India Company the right to collect revenue from Bengal, Bihar, and Orissa, thereby giving it control over the economic resources of these regions.

Under the terms of the treaty, the emperor retained his title and was granted an annual pension of 26 lakh rupees. The emperor was also allowed to maintain a small army for his personal security, but the East India Company was given the right to station its troops in the Mughal capital of Delhi.

Impact
The Treaty of Allahabad marked the beginning of the British Raj in India. With the grant of Diwani rights, the East India Company became the de facto ruler of Bengal, Bihar, and Orissa, and was able to establish its own administration in these regions. The treaty also paved the way for the gradual expansion of British control over other parts of India.

The treaty had a profound impact on the Mughal Empire, which was already in decline. With the loss of its economic resources and the establishment of British troops in its capital, the emperor became increasingly dependent on the East India Company for his survival.

Conclusion
The Treaty of Allahabad was a crucial moment in the history of India, marking the beginning of British rule and the decline of the Mughal Empire. Its impact on the political, economic, and social life of India was profound and far-reaching, shaping the course of Indian history for centuries to come.