False

The statement is false because the Bengal economy did not boom after the Company was appointed as Diwan of that province. In fact, the economic condition of Bengal deteriorated significantly under the Company's rule.

The British East India Company and its role as Diwan
- The British East India Company was a trading company that had established its presence in India, particularly in Bengal, in the early 17th century.
- In 1765, after the Battle of Buxar, the Company was granted the Diwani rights of Bengal, Bihar, and Odisha by the Mughal Emperor Shah Alam II. This meant that the Company became responsible for the collection of revenue in these regions.

The impact of British rule on Bengal's economy
- The Company's rule had a detrimental impact on the Bengal economy. The main reason for this was the exploitative nature of the Company's policies.
- The Company imposed heavy taxes on the farmers and landowners, leading to a significant increase in revenue collection. This, in turn, resulted in the impoverishment of the local population.
- The Company also introduced the Permanent Settlement system in Bengal, which fixed the land revenue at a high rate. This system mainly benefited the zamindars (landlords) who acted as intermediaries between the Company and the farmers. The zamindars, in turn, exploited the farmers by extracting high rents.
- The British also encouraged the production of cash crops like indigo and opium, which were in high demand in Europe. This led to the conversion of fertile agricultural land into monoculture plantations, reducing food production and causing widespread famine and starvation.
- Furthermore, the Company's policies disrupted the traditional industries of Bengal, such as textiles and handicrafts, by imposing heavy duties on Indian goods and flooding the market with cheap British manufactured goods.

The consequences of British rule on Bengal's economy
- The exploitative policies of the British East India Company resulted in widespread poverty and economic decline in Bengal.
- The drain of wealth from Bengal to Britain further weakened the local economy and hindered its growth.
- The Company's rule also contributed to social and political instability in the region, as the local population faced economic hardships and resentment towards the British.

Therefore, it is clear that the Bengal economy did not experience a boom after the Company was appointed as Diwan of the province. Instead, the Company's rule had a detrimental impact on the economy, leading to poverty, economic decline, and social unrest.

Option b is rgt