The Diwani right to the East India Company benefitted it in several ways:
→ The Diwani allowed the Company to use the vast revenue resources of Bengal.
→ The East India Company monopolized trade and began direct plunder of India’s
wealth.
→ Revenues from India financed Company expenses. These revenues were used to
purchase cotton and silk textiles in India, maintain Company troops, and meet the
cost of building the Company fort and offices at Calcutta.
→ The company used its political power to monopolize trade & dictate terms.
They could impose their own prices that had no relation to the costs of production.
→ The company used revenue of Bengal to finance exports of Indian goods.