Do you think that the bengal economy was facing a deep crisis under thediwani of the East India Company? Give three reasons to support your answer.

The chief motive of Britishers was to exploit the economic and commercial conditions of India. In the year 1765 the Mughal emperors surrendered their dominions to the Companyand granted them diwani, i.e. the right to collect revenue.

Due to this the Bengal economy faced deep crisis, as the company was the primary traders in Bengal and it was buying fine cotton and silk cloth from local traders at the cheapest rates.

Secondly the company was purchasing goods by importing gold and silver from Britain hence the revenue collected in Bengal could finance the purchase of goods for export.

Thirdly the company did not have any regular system of assessment and they charged higher taxes and dues which the common people were unable to bare.