Hyderabad State
A princely state ruled by the Nizam from 1724 to 1948.
Hyderabad State, also referred to as the Nizamate of Hyderabad, was a princely state in the Deccan region of south-central India with its capital at the city of Hyderabad. It is now divided into the present-day state of Telangana, the Kalyana-Karnataka region of Karnataka, and the Marathwada region of Maharashtra in the Republic of India. The state was ruled from 1724 to 1948 by the Nizam, who was initially a viceroy of the Mughal Empire in the Deccan. It had also become a protectorate under the Maratha Empire, until the empire's overthrow in 1818, and gradually became one of the first princely states to come under British paramountcy signing a subsidiary alliance agreement.
- Founded
- 1724
- Capital
- Hyderabad
- Ruling Dynasty
- Asaf Jahi
- Last Ruler
- Mir Osman Ali Khan (Asaf Jah VII)
- Official Language Shift
- Persian to Urdu (1880s)
- Currency
- Hyderabadi rupee
- Annexation
- 1948 by India
Verified Timeline
Lore & Background
Hyderabad State was founded by Mir Qamar-ud-din Khan, who was the governor of Deccan under the Mughals from 1713 to 1721. In 1724, following the Battle of Shakar Kheda, he resumed rule from the Mughal provincial capital of Aurangabad, under the title of Asaf Jah, granted by Mughal Emperor Muhammad Shah. His other title, Nizam ul-Mulk (Order of the Realm), became the title of his position 'Nizam of Hyderabad'. By the end of his rule, the Nizam had become independent from the Mughals, and had founded the Asaf Jahi dynasty. Following the decline of the Mughal power, the Nizam saw many invasions by the Maratha Empire in the 1720s, which resulted in the Nizam paying a regular Chauth (tax) to the Marathas. The major battles fought between the Marathas and the Nizam include Palkhed, Rakshasbhuvan, and Kharda, all which the Nizam lost. Following the conquest of Deccan by Shahu I and the imposition of Chauth by him, the Nizam remained a tributary of the Marathas for all intent and purposes, and hence Hyderabad became a protectorate of the Maratha Empire. In 1763, the Nizam shifted the capital to the city of Hyderabad. From 1778, a British East India Company (EIC) resident and EIC soldiers were installed in his dominions. In 1795, the Nizam lost some of his territories to the Marathas, mainly Berar. By 1818, following the overthrow of the Maratha Empire by the Company after the Third Anglo-Maratha War, the Maratha protection of Hyderabad was quickly replaced by the Company's subsidiary alliance.
Reader's Guide
Hyderabad State's significance lies in its long tenure as a major princely state under the Nizams. At the time of the British Raj in 1901, the state had a revenue of ₹41.7 million (equivalent to ₹15 billion or US$160 million in 2023). The native inhabitants of Hyderabad State, regardless of ethnic origin, are called 'Mulki' (countryman), a term still used today. The ruler of the state was also called Nizam-ul-Mulk (Nizam of the country). The dynasty declared itself an independent monarchy during the final years of the British Raj. After the Partition of India, Hyderabad signed a standstill agreement with the new dominion of India, continuing all previous arrangements except for the stationing of Indian troops in the state. Hyderabad's location in the middle of the Indian Union, as well as its diverse cultural heritage, led to India's invasion and annexation of the state in 1948. Subsequently, Mir Osman Ali Khan, the seventh Nizam, signed an instrument of accession, joining India. The Nizam established the Hyderabad State Bank, and Hyderabad was the only independent state in the Indian subcontinent that had its own currency, the Hyderabadi rupee. The Begumpet Airport was established in the 1930s with formation of Hyderabad Aero Club by the Nizam. To prevent another great flood, the Nizam also constructed two lakes, namely the Osman Sagar and Himayath Sagar.
Did You Know?
- The Nizam was initially a viceroy of the Mughal Empire in the Deccan before becoming independent.
- Hyderabad became a protectorate of the Maratha Empire after the Nizam lost battles at Palkhed, Rakshasbhuvan, and Kharda.
- At the time of the British Raj in 1901, Hyderabad State had a revenue of ₹41.7 million.
- The Great Musi Flood of 1908 killed an estimated 50,000 people, and the Nizam opened all his palaces for public asylum.
- Hyderabad was the only independent state in the Indian subcontinent that had its own currency, the Hyderabadi rupee.
Frequently Asked Questions
What was Hyderabad State?
Hyderabad State, commonly called the Nizamate, was a princely state in the Deccan region of south-central India that lasted from 1724 to 1948. It was governed by the Nizam, a title originally attached to a Mughal viceroy, and its capital was the city of Hyderabad.
Who ruled Hyderabad State and through what dynasty?
The Asaf Jahi dynasty held sovereignty over the state for its entire two-century span, beginning with a Mughal-appointed viceroy who converted his office into hereditary rule. Mir Osman Ali Khan, styled Asaf Jah VII, was the last Nizam to hold the throne.
How did Hyderabad State's story end?
In 1948, Indian federal forces ended the Nizam's rule and integrated the territory into the newly independent Republic of India. The former state's lands are now distributed across Telangana, the Kalyana-Karnataka area of Karnataka, and the Marathwada region of Maharashtra.
Why is Hyderabad State significant in early modern state-formation studies?
It traces the arc from a Mughal provincial appointment to a fully independent hereditary polity, a pattern seen across post-Mughal India. Its successive layers of external suzerainty—first Maratha, then British paramountcy—make it a textbook case of how protectorate arrangements shaped territorial boundaries and sovereignty.
What language and currency did Hyderabad State use?
The state's official administrative language shifted from Persian to Urdu during the 1880s, marking a broader cultural reorientation. It also issued its own coinage, the Hyderabadi rupee, which set it apart economically from surrounding regions.
More in Early Modern State Formation And Dynasties 1-20
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