What benefits the company got after getting the diwani rights in Benga...
They had many benifits - (i) now silver from England needed no import. (ii)they can now pay for textile from the revenue collections.
What benefits the company got after getting the diwani rights in Benga...
Benefits of Diwani Rights in Bengal:
Getting the Diwani rights in Bengal had numerous benefits for the East India Company. These benefits can be categorized into economic, political, and administrative advantages.
Economic Benefits:
- Revenue Collection: The East India Company gained the authority to collect revenue directly from Bengal. This allowed them to have control over the revenue generation process, leading to increased profits.
- Trade Monopoly: With the Diwani rights, the company obtained a monopoly over the trade of goods in Bengal. This gave them the power to regulate trade, impose tariffs, and control the market, resulting in significant financial gains.
- Resource Exploitation: Bengal was a rich region with abundant resources such as textiles, indigo, saltpeter, and opium. By acquiring the Diwani rights, the company gained access to these resources, enabling them to exploit them for their economic benefit.
Political Benefits:
- Control over Bengal: The Diwani rights granted the East India Company complete political control over Bengal. They were able to establish their authority and influence over the region, effectively becoming the de facto rulers.
- Strengthened Position: The acquisition of Diwani rights in Bengal enhanced the company's position in India. It solidified their presence and paved the way for further expansion and consolidation of power.
Administrative Benefits:
- Efficient Taxation System: The East India Company introduced a more efficient taxation system in Bengal. They implemented reforms to streamline the collection of revenue, ensuring a steady flow of income.
- Administrative Reforms: With the Diwani rights, the company introduced administrative reforms in Bengal. They established a structured administration, implementing policies and regulations for efficient governance.
Overall, the acquisition of Diwani rights in Bengal provided the East India Company with substantial economic benefits, political control, and administrative authority. These advantages laid the foundation for their subsequent dominance and control over larger parts of India.
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