In the context of eighteenth century India, what was ‘Dastak’?

In the context of eighteenth century India, what was ‘Dastak’?

Signature
Land document
Trade permit
Tax on textiles
This question was previously asked in
UPSC CDS-1 – 2023
In the context of 18th-century India, ‘Dastak’ referred to a trade permit or pass. These passes were granted to the English East India Company by Mughal emperors, particularly after the grant of *diwani* rights in Bengal (1765), allowing the Company and its officials to trade goods without paying inland customs duties (tolls). The misuse of these *dastaks* by Company servants for private trade without paying duties became a major source of conflict with the local nawabs, notably leading up to the Battle of Plassey.
– ‘Dastak’ was a permit for trade.
– It exempted the holder from paying customs duties.
– Primarily associated with the English East India Company’s trade in Bengal in the 18th century.
– The misuse of *dastaks* undermined the revenue base of the Bengal Nawab and gave the English Company an unfair advantage over other traders (Indian and European).
– This was one of the factors contributing to the decline of the Mughal Empire’s authority and the rise of the English East India Company’s political power.
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