Concept:The East India Company's exploitative revenue policies after obtaining the Diwani of Bengal directly caused the economic crisis and famine.
Explanation:In 1765, the Company became the Diwan of Bengal, making it the chief financial administrator.
Its main aim was to maximize revenue to buy fine cotton and silk cloth as cheaply as possible.
Instead of importing gold and silver from Britain, the Company now used the revenue collected in Bengal to finance the purchase of goods for export.
This led to a sharp decline in artisanal production and agricultural cultivation.
By 1770, a terrible famine killed about ten million people in Bengal.
Thus, the reason (R) directly explains why the crisis in assertion (A) occurred.
Answer:Both (A) and (R) are true and (R) is the correct explanation of (A). Option A.