NCERT Book Class 8 Social Science (History) Chapter 3 Ruling the Countryside

3 Ruling the Countryside

Fig. 1 – Robert Clive
accepting the Diwani
of Bengal, Bihar and
Orissa from the Mughal
ruler in 1765

The Company Becomes the Diwan
On 12 August 1765, the Mughal emperor appointed the East
India Company as the Diwan of Bengal. The actual event most
probably took place in Robert Clive’s tent, with a few Englishmen
and Indians as witnesses. But in the painting above, the event
is shown as a majestic occasion, taking place in a grand setting.
The painter was commissioned by Clive to record the memorable
events in Clive’s life. The grant of Diwani clearly was one such
event in British imagination.
As Diwan, the Company became the chief financial
administrator of the territory under its control. Now it had to think
of administering the land and organising its revenue resources.
This had to be done in a way that could yield enough revenue to
meet the growing expenses of the company. A trading company
had also to ensure that it could buy the products it needed and
sell what it wanted.

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