The correct option is (c).
Explanation
The grant of "Diwani" rights in 1765 was a watershed moment in Indian history, marking the transition of the East India Company from a purely trading entity to a political power. It was formalized through the Treaty of Allahabad following the Battle of Buxar (1764).Statement-wise Analysis:
- Statement 1 is Correct: The Diwani of Bengal, Bihar, and Odisha was granted to the East India Company by the Mughal Emperor Shah Alam II in 1765. This granted the Company the right to collect revenues from these provinces.
- Statement 2 is Incorrect: Before acquiring the Diwani rights, the East India Company had to import gold and silver (bullion) from Britain to purchase Indian goods, as there was little demand for British goods in India. After acquiring the Diwani, the Company began using the revenue collected from Bengal to finance its trade. Consequently, the import of gold and silver from Britain stopped rather than increased.
- Statement 3 is Correct: The surplus revenue collected from Bengal was utilized to meet the Company's military and administrative expenses and to purchase Indian goods, such as cotton and silk textiles, for export. This practice, known as "Investment," meant that Indian goods were bought using Indian revenue and exported to Europe, initiating the economic drain of wealth.
Key Takeaway:
The Diwani rights (1765) allowed the British to finance their trade and military expansion in India using India's own revenue, ending the need to import bullion from Britain.