The battle of Buxar proved itself to be a turning point in the history of India.

1. In 1765, Shuja-ud-daulah and Shah Alam signed treaties at Allahabad with Clive who had become the Governor of the company. Under these treaties, the English company secured the Diwani of Bengal, Bihar and Odisha, which gave the company the right to collect revenue from these territories.

2. The Nawab of Awadh ceded Allahabad and Kora to the Mughal Emperor who began to reside at Allahabad under the protection of the British troops.

3. The company agreed to pay Rupees 26lakhs every year to the Mughal Emperor but they stopped making this payment soon after. The company promised to send its troops to defend the Nawab against any invaders, for which the Nawab would be required to pay.

4. Thus, the Nawab of Awadh became dependent on the company. In the meantime, Mir Jafar had again been made the Nawab of Bengal. After his death his son was installed as the Nawab. The officials of the company made huge personal profits by extorting money from the Nawab.