What do you Mean by Diwani Right? How did it Benefit the East India Company?

Question: What do you Mean by Diwani Right? How did it Benefit the East India Company?

Answer: The British East India Company was awarded Diwani Rights, which allowed them to collect taxes and settle civil issues.

The Company’s purchase of the Diwani rights is a significant milestone in India’s history.

• The British occupation of Bengal, Bihar, and Orissa was now officially recognised
• The Company ceased receiving money from England to buy items in India after they had the Diwani rights
• The money obtained by selling these commodities was sent back to England, not spent in Bengal, and the revenue collected from Bengal was utilised for this purpose Clive served the Company’s financial and political interests in the name of the Mughal emperor and with the agreement of the Bengal Nawab