📚 Part of: Ancient Indian Education & Historical Mcqs

..... allowed the company to use the revenue resources of Bengal

Category: Miscellaneous Indian Gk

Correct Answer: B) Diwani.

Exam Relevance: UPSC Civil Services, IAS Prelims, IAS Mains, State PSC Exams, History Exams

Difficulty: Moderate

Concept notes:

The Diwani was a significant administrative and financial arrangement in the history of British colonial rule in India. It granted the East India Company the right to collect land revenue in Bengal, Bihar, and Orissa, effectively transferring the financial administration of these regions from the Mughal Empire to the Company.

Common Mistakes:
  • Confusing the Diwani with other British policies like the Subsidiary Alliance or Doctrine of Lapse.
  • Misunderstanding the specific powers and rights granted by the Diwani.
  • Overlooking the historical context and the impact of the Diwani on the Mughal Empire and the East India Company.
Explanation:

The Diwani was a pivotal event in the history of British colonial rule in India, particularly in the region of Bengal. It was granted to the East India Company by the Mughal Emperor Shah Alam II in 1765, following the Company's victory in the Battle of Buxar. The Diwani allowed the East India Company to collect land revenue in the provinces of Bengal, Bihar, and Orissa, effectively transferring the financial administration of these regions from the Mughal Empire to the Company.

The significance of the Diwani lies in its role in consolidating the East India Company's control over the economic resources of Bengal. Prior to the Diwani, the Company had primarily been involved in trade and had limited administrative powers. The Diwani marked a shift from a purely commercial enterprise to a more direct form of governance and economic exploitation. The Company could now use the revenue collected from these regions to finance its military and administrative expenses, as well as to fund its expansion into other parts of India.

The Diwani had profound implications for the Mughal Empire and the people of Bengal. For the Mughal Empire, it represented a significant loss of control over its territories and resources. For the people of Bengal, the Diwani often led to increased taxation and economic hardship, as the Company sought to maximize its revenue. The period following the Diwani saw a series of famines and economic crises in Bengal, which were partly attributed to the Company's revenue policies.

In contrast, the other options listed do not directly relate to the collection of revenue resources in Bengal. The Subsidiary Alliance, introduced by Lord Wellesley, was a policy aimed at bringing Indian states under British control by making them pay for a British subsidiary force. The Doctrine of Lapse, introduced by Lord Dalhousie, allowed the British to annex princely states where the ruler died without a natural heir. The Policy of Paramountcy established the British Crown as the ultimate authority over all princely states in India. None of these policies directly involved the collection of revenue resources in Bengal, making them incorrect in the context of the question.

Understanding the Diwani is crucial for comprehending the broader context of British colonial rule in India, particularly the economic and administrative strategies employed by the East India Company to consolidate its power. It serves as a key example of how the Company transitioned from a trading company to a governing entity, with significant implications for the economic and political landscape of India.

Option Analysis:
  • Option A: The Subsidiary Alliance was a policy introduced by Lord Wellesley to bring Indian states under British control by making them pay for a British subsidiary force. It did not directly involve the collection of revenue resources in Bengal. This option is incorrect because it pertains to a different policy and period.
  • Option B: The Diwani was a significant administrative and financial arrangement that allowed the East India Company to collect land revenue in Bengal, Bihar, and Orissa. This option is correct because it directly addresses the transfer of revenue collection rights to the Company, which was a crucial step in consolidating British control over these regions.
  • Option C: The Doctrine of Lapse was a policy introduced by Lord Dalhousie that allowed the British to annex any princely state where the ruler died without a natural heir. This option is incorrect because it pertains to a different policy and period, and it did not involve the collection of revenue resources in Bengal.
  • Option D: The Policy of Paramountcy was a principle that established the British Crown as the ultimate authority over all princely states in India. This option is incorrect because it pertains to a different policy and period, and it did not involve the collection of revenue resources in Bengal.

Mnemonic: D - Diwani, I - India, W - Wealth, A - Administration, N - Negotiation, I - India

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