Explanations:The East India Company's rule over Bengal as the Diwan, which began in 1765, had profound and largely negative effects on the region's economy. The company's primary objective was to extract revenue from the region to fund its operations and to generate profits for its shareholders in Britain. This focus on revenue extraction led to several policies that had detrimental effects on the local economy, particularly in the areas of agriculture and artisanal production.
One of the most significant impacts was on agricultural cultivation. The East India Company imposed heavy taxes on the peasantry, which often left farmers with insufficient resources to sustain their livelihoods. The company's revenue demands were so high that they often led to the over-exploitation of agricultural resources, resulting in soil degradation and a decline in agricultural productivity. Additionally, the company's policies often disrupted traditional agricultural practices and land tenure systems, further exacerbating the decline in agricultural output.
Similarly, the East India Company's rule had a negative impact on artisanal production. The company's policies favored the import of British goods, which undermined local craftsmanship and production. The influx of cheap British manufactured goods led to a decline in demand for locally produced goods, which in turn affected the livelihoods of artisans and craftsmen. The company's focus on exporting raw materials and importing finished goods disrupted the local economy and led to a decline in the artisanal sector.
These economic policies and their effects on agriculture and artisanal production are well-documented in historical records and have been a subject of study in Indian history. The East India Company's rule over Bengal as the Diwan is often cited as a period of economic decline and hardship for the local population, particularly in the agricultural and artisanal sectors.
Therefore, the correct answer is that both agricultural cultivation and artisanal production showed signs of collapse under the East India Company's rule, making option D the correct choice.