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

Social StudiesClass 8CBSEAnswered 27 Mar 2026
Answer

Diwani rights are the rights that the British acquired to collect their own revenues and have the authority to decide on civil cases. This right benefited the East India Company in several ways:

  1. It allowed the Company to use the vast revenue resources of Bengal
  2. The monopoly of the East India Company on trade started
  3. Revenue of Bengal was used to export Indian goods out of the country
Social Studies · Class 8