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SAI INTERNATIONAL SCHOOL
STD VIII
CH- 3 RULING THE COUNTRYSIDE
NOTES
Transition from Trade to Administration: The Company shifted from being
solely a trading entity to also governing and administering territories.
Revenue Collection: As Diwan, the Company became the chief financial
administrator, responsible for collecting land revenue and managing finances in
the region.
Administrative Challenges: The Company had to devise systems to efficiently
collect revenue to fund its operations and trade activities.
Economic Strain: High revenue demands led to widespread distress among
peasants, many of whom were unable to pay taxes, resulting in deserted villages.
Agricultural Disruption: The focus on revenue collection over agricultural
development led to neglect of farming practices and infrastructure.
Famine: The economic policies contributed to the Great Bengal Famine of 1770,
causing massive loss of life
Artistic Representations: The event of the Company receiving Diwani rights was
immortalized in paintings commissioned by Robert Clive, depicting it as a grand
ceremony, though it likely occurred in a modest setting

