East India Company as the Diwan
East India Company as the Diwan
Diwan designated a powerful government official, minister, or ruler. A diwan was the head of a state institution of the same name see Diwan. Diwans belonged to the elite families in the history of Mughal and post-Mughal India and held high posts within the government.
India, before the establishment of British rule, was a flourishing centre of craft and industry. It has been described as ‘the industrial workshop of the world’. The cities had workshops or karkhanas, where several artisans could work on a piece together. In the villages, the artisans worked from home. They were helped by family members and used their own equipment. Such a system of production is called a cottage industry. The techniques of production of the Indian artisans were far more advanced than Articles made by Indian artisans had a market the world. The main exports in the 17th century were calico, muslin, yarn, raw cotton, raw gold and silver artifacts, jewellery, leather, sugar, rice, indigo, pepper and other spices. The value of imports into India far exceeded the value of imports into India. Exports were mainly paid in silver or gold.
The Country Becomes The Diwan: On 12 August 1765, the Mughal Emperor appointed the East India Company as the Diwan of Bengal. As Diwan the company became the Chief financial administrator of the territory under its control. Now it had to think of administering the land and organizing its revenue resources. This had to be done in a way that could yield enough revenue to meet the growing expenses of the company. A trading company had also to ensure that it could buy the products it needed and sell what it wanted. Being an alien power, it needed to pacify those who bin the past had ruled the countryside and enjoyed authority and prestige. Those who had held local power had to be controlled but they could not be entirely eliminated.
The Treaty of Allahabad was signed on 12 August 1765,between the Mughal Emperor Shah Allam II son of the late Emperor Alamgiri II and Robert Clive,, of the East India Company, in the aftermath of the Battle of Buxar 22 October 1764.
The Treaty marked the political and constitutional involvement and the beginning of British rule in India.Based on the terms of the agreement, Alam granted the East India Company Diwani rights, or the right to collect taxes on behalf of the Emperor from the eastern province of Bengal-Bihar-Orissa. These rights allowed the Company to collect revenue directly from the people of Bengal, Bihar and Orissa. In return, the Company paid an annual tribute of twenty-six lakhs of rupees (equal to 260,000 pounds sterling) while securing for Shah Alam II the districts of Kora and Allahabad. The tribute money paid to the emperor was for the maintenance of the Emperor's court in Allahabad. The accord also dictated that Shah Alam be restored to the province of Varanasi as long as he continued to pay certain amount of revenue to the Company. Awadh was returned to Siraj ud Daulah, but Allahabad and Kora were taken from him. The Nawab of Awadh Siraj ud Daulah also had to pay fifty lakhs of rupees as war indemnity to the East India Company.
Moreover, the two signed an alliance by which the Company promised to support the Nawab against outside attacks provided he paid for services of the troops sent to his aid. This alliance made the Nawab dependent on the Company. This was a turning point in Indian history.
The assumption of Diwani benefit the East India Company
When was the East India Company made 'Diwan" of Bengal? | |||
| Right Option : D | |||
| View Explanation | |||
During the Mughal rule in India, what was the status of the 'Diwan ' ? | |||
| Right Option : A | |||
| View Explanation |
On ________ , the Mughal Emperor appointed the East India Company as the Diwan of Bengal. | |||
| Right Option : B | |||
| View Explanation | |||
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