Subject : Modern Indian History
Chapter : Rise of The Regional Powers
Topic: Battle of Buxar (1764) and its
Impact
In 1763 Mir Kasim fled from Bengal and formed an alliance
with the Mughal Emperor Shah Alam II and Shuja-ud-daula of Awadh. However, in
Battle of Buxar in 1764, the combined forces were defeated and Treaty of
Allahabad was ‘signed in 1765 In accordance with the treaty Shah Alam II granted
the diwani of Bengal, Bihar and Orissa to the Company. This grant meant that the
Company could collect the revenues from the province.
Importance of this battle- Before the grant of diwani, the
English used to bring bullion to trade with India The balance of trade was in
the favour of India But after gaining the diwani rights, the English bought
Indian goods from the revenues collected from the province of Bengal and then
exported them Due to this the balance of trade no longer favoured India but led
to greater exploitation of the country by the English. The Battle of Buxar had
important political consequences for India.