Q.6. How did the assumption of Diwani benefit the East India Company? [50-60] ( 3 marks)Ans:' 1. Assuming Diwanii rights. 2.Use of vast revenue. 3.Stop inflow of gold ....
Question
Q.6. How did the assumption of Diwani benefit the East India Company? [50-60] ( 3 marks)Ans:' 1. Assuming Diwanii rights. 2.Use of vast revenue. 3.Stop inflow of gold ....
Solution
The assumption of Diwani benefited the East India Company in several ways:
-
Control Over Revenue: The Diwani rights gave the East India Company control over the revenue of Bengal, Bihar, and Orissa. This meant that the company had direct access to the vast wealth of these regions, which it could use to fund its operations.
-
Economic Advantage: The company used this revenue to buy Indian goods like textiles and spices, which were in high demand in Europe. This gave the company a significant economic advantage over its European competitors, who had to pay for these goods in gold and silver.
-
Stopping the Inflow of Gold and Silver: By using the revenue from the Diwani rights to buy goods, the company was able to stop the outflow of gold and silver from Britain to India. This helped to strengthen the British economy.
-
Political Power: The assumption of Diwani also gave the company significant political power. It was able to use its control over revenue to influence local rulers and officials, further strengthening its position in India.
-
Monopoly Over Trade: The revenue from the Diwani rights allowed the East India Company to establish a monopoly over trade with India. This monopoly allowed the company to control prices and ensure a steady supply of goods, further increasing its profits.
Similar Questions
How did the end of the East India Company's rule bring in grave economicperils in India?
Point out the problems of Indian capital market.
Directions for questions 6 and 7: The following questions have a paragraph from which the last sentence has been deleted. From the given options, choose the one that completes the paragraph in the most appropriate way.We are increasingly told that the inflow of capital — particularly the foreign direct investment (FDI) variety — increases employment levels and contributes to economic growth. In a rare interview given to The Wall Street Journal in May, Prime Minister Narendra Modi reinforced the role of FDI for India: "To set a strong foundation for sustainable growth, we have run the most prudent macro-economic administration in decades, reducing fiscal and current account deficits. We have made India a destination which welcomes capital by liberalising foreign-direct investment policy, increasing the ease of doing business.” Recently, the government further relaxed the FDI policy. ______An FDI mania appears to have gripped our policymakers.However, there are no a priori reasons for favouring foreign investment over domestic investment under normal economic conditions.But foreign investment is an option in the short term.A probable positive consequence of foreign investment is the inflow of new technology and its subsequent diffusion.
Dividend amount of ₹ 50,000 was not paid to the successor of Late Mr. Mohan, in view ofthe court order restraining the payment due to family dispute about succession.You are required to analyse these cases with reference to provisions of the Companies Act,2013 regarding failure to distribute dividends
Q-1: Journalise the following transactions:Jan-1 Ramesh started business with cash Rs. 50,000.Jan-4 Purchased goods for cash Rs. 7,000.Jan-5 Sold goods for cash Rs. 5,000.Jan-7 Purchased goods from Mohan on credit worth Rs. 4,500.Jan-12 Sold goods to Sohan on credit worth Rs. 2,000.Jan-16 Paid wages amounted to Rs. 4,000.Jan-17 Paid salaries to Rs. 2,500Jan-22 Received commission Rs. 2,000.Jan-25 Goods returned by Sohan worth Rs. 1,500.Jan-28 Returned goods to Mohan Rs. 1,000.Jan-30 Cash Received from Sohan Rs. 1,200.Jan-31 Purchased furniture from Deepak worth Rs. 5,000.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.