Introduction
- The former princely state of south-central India that was centred on the city of Hyderabad, was founded by Nizam al-Mulk (Āṣaf Jāh), who was intermittently viceroy of the Deccan (peninsular India) under the Mughal emperors from 1713 to 1721 and who resumed the post again under the title Āṣaf Jāh in 1724.
- At that time he became virtually independent and founded the dynasty of the nizams (rulers) of Hyderabad.
Emergence of new states in 18th Century
- By 1761 the Mughal empire was empire only in name, as its weaknesses had enabled the local powers to assert their independence
- Yet the symbolic authority of the Mughal emperor continued, as he was still considered to be a source of political legitimacy.
- The new states did not directly challenge his authority and constantly sought his sanction to legitimise their rule.
- The emergence of these states in the eighteenth century, therefore, represented a transformation rather than collapse of the polity. It signified a decentralisation of power and not a power vacuum or political chaos.
- These new states were of various kinds with diverse histories:
- some of them were founded by Mughal provincial governors
- some were set up by the rebels against the Mughal state; and
- a few states which asserted their independence were previously functioning as autonomous but dependent polities
- Thus, this phase is regarded as a transitional era between the medieval and modern period.
Early history of Hyderabad
- Following the decline of the Mughal power, the region of Deccan saw the rise of Maratha Empire.
- The Nizam himself saw many invasions by the Marathas in the 1720s, which resulted in the Nizam paying a regular Chauth (tax) to the Marathas
- Following the conquest of Deccan by Bajirao I and the imposition of chauth by him, Nizam remained a tributary of the Marathas for all intent and purposes.
- In 1763, the Nizam shifted the capital to the city of Hyderabad.
- From 1778, a British resident and soldiers were installed in his dominions.
British suzerainty
- In 1798, Nizam Ali Khan (Asaf Jah II) was forced to enter into an agreement that put Hyderabad under British protection. He was the first Indian prince to sign such an agreement.
- At this time, the Crown retained the right to intervene in case of misrule.
- Hyderabad under Asaf Jah II was a British ally in the second and third Maratha Wars (1803–05, 1817–19), Anglo-Mysore wars, and would remain loyal to the British during the Indian Rebellion of 1857 (1857–58).
Consolidation of Power
- In Hyderabad, Mubariz Khan, the Mughal governor of Deccan, was ruling almost as an independent king.
- In 1723 the nizam defeated Mubariz and the following year he took over as the Subahdar of Deccan and consolidated his power around Hyderabad.
- The actual independence of the Hyderabad kingdom may be dated from 1740 when finally the nizam left north India to settle there permanently
- He subdued the refractory zamindars and showed tolerance towards the Hindus who had economic power in their hands and as a result, Hyderabad witnessed the emergence of a new regional elite who supported the nizam.
- For all practical purposes, the nizam acted independently, conducting wars, signing treaties, conferring mansabs and making important appointments without any reference to the emperor
Administration under Nizams
- The Hyderabadi administrative system did not try to destroy the indigenous power structures within the territory, but sought to incorporate them into a “patron-client relationship” with the central power
- The locally entrenched semi-autonomous rulers were allowed to govern their inherited territories in return for an annual tribute or peshkash paid to the nizam
- The locally powerful traders, moneylenders and the military aristocracy also played a crucial role in the Hyderabad polity, by providing valuable financial and military support to the nizam, who emerged as the chief patron within the polity
- Under this new administration, the old Mughal institutions were not totally thrown out, but they underwent substantial changes in content
- Land revenue was collected through powerful intermediary revenue farmers; but unlike the Mughal practice, there was very little attempt to keep them under control.
- The jagirs under this new system became hereditary and the mansabdari system only retained a few of its Mughal features.
- There was also a remarkable change in the composition of the nobility: while the older military aristocracy retained some of its power, some new men with expertise in revenue and financial management rose from lower ranks.
Thus, by the end of the eighteenth century, Hyderabad represented a relatively new political system with a whole range of new participants, who had diverse origins and social background








