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

NCERT Class 8th Social Science Ch 2 From trade to Territory?



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The assumption of Diwani benefitted the East India Company in following ways:

It allowed the company to use the massive revenue resources of Bengal.

The company used the revenues of Bengal to finance the exports of Indian goods.

The East India Company also dominated trade and began to do direct booty of wealth of India. 

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- IN 1765  the mugul emperor appointed the company as the diwani of the provinces of Bengal
- the out flow of gold slowly stopped from britain to India
-after battle of plassey entirely the gold  flow was stopped assumption of diwani
-the revenue from India could finance company expenses
- these revenue purchased cotton and silk textiles in India
- to maintain company troop ,and met the cost of building the company fort and office at calcutta

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