In the 18th century, the Bengal economy was facing a deep crisis because
→ Artisans were forced to sell their goods to the Company at low prices. Thus, artisans were leaving their villages and artisanal production was in decline.
→ The rajas and taluqdars were not interested in the improvement of lands, thus agricultural cultivation was declining. Peasants were unable to pay the taxes that were demanded from them.
→ In 1770, a terrible famine killed almost one-third of the population of Bengal.