ruling the countryside the company becomes the diwan on 12 august 1765, the mughal emperor appointed...

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Ruling the Countryside • The company becomes the Diwan • On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal.

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Page 1: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

Ruling the Countryside

• The company becomes the Diwan• On 12 August 1765, the mughal emperor

appointed the East India Co. as Diwan of Bengal.

Page 2: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

• As Diwan company became the chief financial administrator of the territory under its control.

• After getting Diwani rights for Bihar, Bengal, Orissa Co. continued with their traditional methods of collecting revenue.

Page 3: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

Revenue for the company

• The effort was to increase the revenue as much as it could and buy fine cotton and silk cloth as cheaply as possible.

• Soon it was clear that Bengal economy was facing a deep crisis.

• Artisans were deserting villages since they were forced to sell their goods to the Co. at low prices.

Page 4: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

• Peasants were unable to pay the dues that were demanded from them

• Artisanal production was in decline • 1770 a terrible famine killed ten million

people in Bengal

Page 5: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

The NEED TO IMPROVE AGRICULTURE

• Most of the Co. officials felt that investment in agriculture had to be encouraged and agriculture had to be improved.

• Co. finally introduced Permanent settlement in1793.

• By the terms of the settlement Rajas and Taluqdars were recognised as Zamindars.

Page 6: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

• They were asked to collect rent from the peasants and pay revenue to the Co.

• Regular flow of revenue to Co. • Since the revenue demand of the Co. did not

increase , Zamindars did not benefit from the increased production of the land.

Page 7: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

Effects

• It created for British new class of loyalists in the form of Zamindars.

• Area of cultivation increased.• Condition of peasants became worse.• Zamindars were benefited• Zamindars had no interest in improving the

land.

Page 8: Ruling the Countryside The company becomes the Diwan On 12 August 1765, the mughal emperor appointed the East India Co. as Diwan of Bengal

New system devisedMahalwari settlement