The East India Company, also known as the Honourable East India Company, was a British company that was established in 1600 and eventually became a major force in India’s history. In 1765, the East India Company was granted the Diwani, or the right to collect taxes, by the Mughal Emperor Shah Alam II. This was a major turning point in the company’s history, as it allowed them to gain a near monopoly on the trade in India. The assumption of the Diwani by the East India Company had far reaching consequences, both positive and negative.
Diwani and East India Company
The Diwani was a legal document that was granted to the East India Company by the Mughal Emperor Shah Alam II in 1765. This document granted the Company the right to collect taxes in Bengal, Bihar, and Odisha. This gave the company control over a large portion of the Indian subcontinent, and allowed them to gain a near monopoly on the trade in India. It also gave them the power to appoint people to government positions, and to make laws and regulations.
Benefits of Assumption of Diwani
The assumption of the Diwani was a major turning point for the East India Company, as it allowed them to gain a near monopoly on the trade in India. This gave them control over the prices of goods, and allowed them to increase their profits significantly. The Company was also able to use the taxes they collected to fund their own military operations, giving them a powerful army to protect their interests. The Diwani also allowed them to appoint people to government positions, giving them control over the government of the region.
The Diwani also allowed the East India Company to expand its influence in India, as it allowed them to gain control over the entire region. This allowed the company to gain access to new markets and resources, and to build a powerful trade network. They were also able to use the taxes they collected to fund their own military operations, which allowed them to protect their interests.
The assumption of the Diwani by the East India Company was a major turning point in the company’s history, as it allowed them to gain a near monopoly on the trade in India. The Diwani allowed the company to collect taxes, to appoint people to government positions, and to build a powerful trade network. It also allowed them to fund their own military operations, giving them a powerful army to protect their interests. The Diwani was a major benefit to the East India Company, and it allowed them to expand their influence and power in India.