6. How did the assumption of Diwani benefit the East India Company?
Answer.
Diwani rights are the rights that the British acquired to collect their own revenues and
have the authority to decide on civil cases. This right benefited the East India
Company in several ways:
a. It allowed the Company to use the vast revenue resources of Bengal
b. The monopoly of the East India Company on trade started
c. Revenue of Bengal was used to export Indian goods out of the country
7. Explain the system of “subsidiary alliance”.
Answer.
The system of the subsidiary alliance made Indian rulers let go of their armed forces
and come under the protection of the East India Company. The following changes
occurred when this system came into being:
a. The East India Company became the guardian of the territories that it took under
the alliance
b. An English resident, who served as the EIC’s personnel, was appointed in the
territory to keep a check on the ruler
c. The Indian rules were asked not to allow any other European companies to trade
with them and enter their territory
d. Indian rulers were told to pay for the subsidiary armed forces of the EIC,
disobeying which led to that part of the territory being forfeited by the company
8. In what way was the administration of the Company different from that of
Indian rulers?
Answer.
The difference in the administration of the company and that of the Indian rulers is
given below:
Company Administration Indian Rulers Administration
The company divided the territories into Indian rulers divided the territories into district, pargana,
presidencies tehsil and parishad
Governor ruled the administrative units Zamindar or Peasants were responsible for their units
Governor-General was the head of the state King or Nawab was the head of the state
The introduction of several acts: Indian rulers brought no such acts but used to rule with their
farmans.
Regulating Act
Indian Council Acts
Montague-Chelmsford Reforms
9. Describe the changes that occurred in the composition of the Company’s
army.
Answer.
The army of EIC was known as Sepoy Army. The main participants of the army were
the peasants of India, trained by the EIC to become professional soldiers. The major
change in the EIC army was the domination of infantry over cavalry with the
introduction of muskets, matchlocks to guard them. The company also introduced a
uniform military culture where soldiers were given European training through drills
and other exercises.
