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diwani systems, dual system of administration, no money inflow from the…
diwani systems
right for revenue collection
british
outside the picture only british were having the full powers both nizamat and diwani
but they were neither accountable nor responsible to people.
nawab was made responsible for menaces britishers created
dual system of administration
nizamat functions
defense, law and order and administration
exercised by nawab of bengal
it was just the sham as in reality one could become a nawab of bengal iff he surrendered the nizamat functions
no money inflow from the british
british collected taxes
used this money for purchasing goods from india (which should have been used for welfare of the people )
indian merchants, artisans, were left with nothing and their condition turned precarious
those goods went out of india
drain of wealth
as india didn't gain anything but goods were flowing out
adminstrative breakdown
nizamat was not functioning
law and order failed
thefts, criminal activities etc increased
whole system was corrupt
agriculture brakdown
mainly interested in tax collection and not on increasing productivity
to obtain the zamindari more amount was quoted than the land can actually produce
this led to severe famines and severe extortion of farmers. ultimately farmers heavily suffered
disruption of trade and commerce
by the farman 1717 british were granted tax free trade in bengal
this worked against the country
issue dustaks and they were misused
monopolised the internal trade and underselling of indian goods
ruin of industry and silks
setback to indian silk industry
indian silk competed with british silk and COD discouraged weaving of silk
weavers were ruined compelled to work in company's factories
oppressive methods, fines , various forms of coercion were practised by company
company forced indian artisans etc to lower the prices to the disadvantage of indian producers.they couldnt get their production cost (forget about profits.)
solution by clive
sign covenants prohibiting acceptance of presents
stops their workers from internal trade
but he regulated and controlled internal trade
society of trade was formed
monopoly in salt, betel, tobacco
all the production was bought at cheap prices and sold t very higher prices
cod declared this null and void in 1766
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drain of wealth from india
adverse impact of dual system