"Bengal economy was facing the deep …

The Company becomes the Diwan
1) The Mughal emperor appointed the East India Company as the Diwan of Bengal on 12 August, 1765.
2) The Company became the chief financial administrator of the territory under its control.

Revenue for the Company
1) After becoming the Diwan, the Company aimed at increasing revenue as much as possible and buying silk cloth and fine cotton as cheaply as possible.
 2) In 5 years, the value of goods bought by the Company in Bengal doubled.  
3) Now, the cost of goods purchased for export was paid from the revenue collected in Bengal.
4) Bengal started facing deep economic crisis and artisans started deserting the villages.
5) Peasants were unable to pay their dues, production declined and agricultural cultivation collapsed.
6) In 1770, one-third of the population of Bengal was wiped out due to a terrible famine.