Hyderabad as a Regional State in Eighteenth-Century India

Hyderabad emerged as a major autonomous successor state in the Deccan region during the early eighteenth century as Mughal imperial authority disintegrated. Founded by Nizam-ul-Mulk Asaf Jah I, the state occupied a strategically crucial position linking northern and southern India. Its governance framework preserved Mughal administrative norms while adapting to the unique political realities of the Deccan peninsula.

Foundation and Political Evolution

The political transition of Hyderabad from a Mughal province into an autonomous state was guided by Nizam-ul-Mulk’s administrative experience and military strategy.

Mir Qamar-ud-Din Khan (Asaf Jah I)

Mir Qamar-ud-Din Khan, a prominent noble of Turani descent, received the title Nizam-ul-Mulk from Mughal Emperor Farrukhsiyar in 1713.

• Establishment of Autonomy: In 1724, Nizam-ul-Mulk defeated the Mughal governor Mubariz Khan at the Battle of Shakarkheda in Berar. This victory established his independent rule over the Deccan.
• Imperial Recognition: Mughal Emperor Muhammad Shah ‘Rangeela’ accepted the reality of his authority and conferred upon him the title Asaf Jah in 1725.
• Policy of Nominal Loyalty: Asaf Jah I maintained formal allegiance to the Mughal throne. He read the Khutba in the Emperor’s name and issued coins with the imperial insignia, but exercised complete independence in administration, appointments, and war treaties.
• Containment of Maratha Incursions: He engaged in continuous political and military diplomacy to protect his borders against Maratha expansion led by Peshwa Baji Rao I.

Wars of Succession and Internal Instability

The death of Asaf Jah I in 1748 triggered a war of succession among his descendants, creating opportunities for foreign intervention.

• Anglo-French Rivalry: British and French trading companies intervened directly in the succession disputes between Nasir Jung (son of Asaf Jah I) and Muzaffar Jung (grandson of Asaf Jah I).
• French Influence under Dupleix: French Governor-General Joseph François Dupleix supported Muzaffar Jung and later Chanda Sahib, securing major financial and territorial concessions.
• Ascension of Salabat Jung: Following the deaths of Nasir Jung and Muzaffar Jung, Salabat Jung assumed power in 1751 under the protection of French commander Marquis de Bussy.

Administrative Framework and Revenue Systems

Hyderabad retained the administrative systems of the Mughal Empire while making modifications to handle local landholders and military commanders.

Jagirdari and Deshmukh Dynamics

• Retention of Mughal Grids: The administrative divisions into Subahs, Sarkars, and Parganas remained intact, following classic Mughal structures.
• Accommodation of Local Elites: Nizam-ul-Mulk avoided disturbing local landed aristocrats (Deshmukhs and Deshpandes). He permitted them to collect traditional hereditary revenues in exchange for military service and fixed tributes.
• Financial Administration: The state avoided excessive centralization by granting administrative autonomy to regional governors (Taluqdars), provided they remitted fixed annual land revenues to the state treasury.

Territorial and Financial Impact of Maratha Treaties

British Encroachment and Subsidiary Alliance

The second half of the eighteenth century saw Hyderabad transition into a protected British princely state under Nizam Ali Khan (Asaf Jah II), who ruled from 1762 to 1803.

Loss of the Northern Circars

• French Departure: Marquis de Bussy was recalled from Hyderabad by French Governor Lally in 1758 during the Third Carnatic War, ending French influence at the Nizam’s court.
• Treaty of Masulipatam (1759): Salabat Jung allied with the British and ceded Masulipatam and surrounding territories.
• Cession of Northern Circars: In 1766, Nizam Ali Khan signed a treaty granting the Northern Circars (coastal Andhra regions) to the East India Company in exchange for a British military force stationed in the state.

The First Subsidiary Alliance (1798)

Under pressure from Maratha raids and the military power of Tipu Sultan’s Mysore, Hyderabad became the first Indian state to sign a formal Subsidiary Alliance with Governor-General Lord Wellesley.

• Terms of 1798 Treaty: Nizam Ali Khan agreed to disband his French-trained military contingents and maintain a permanent British force at Hyderabad.
• Territorial Cessions (1800): By the Treaty of 1800, the Nizam ceded territories acquired from Mysore during the Anglo-Mysore Wars to pay for the maintenance of the British Subsidiary Force. These lands became known as the Ceded Districts (modern Rayalaseema region).

Key Fact File and Historical Trivia

Mir Qamar-ud-Din Khan’s father, Ghazi-ud-Din Khan Feroze Jung, served as a prominent military commander under Mughal Emperor Aurangzeb during the siege of Golconda in 1687. The Battle of Shakarkheda fought in October 1724 led to the death of Mughal Governor Mubariz Khan and marked the actual date of independence for the state of Hyderabad. The Treaty of Treaty of Purandar in 1731 allowed the Marathas to collect Chauth (one-fourth of revenue) and Sardeshmukhi (an additional ten percent) from the six Mughal provinces of the Deccan. In 1751, French commander Marquis de Bussy secured the assignment of the rich coastal area known as the Northern Circars (Chilka Lake to the Krishna River) to pay for French troops stationed in Hyderabad. Under the Subsidiary Alliance of 1798, the East India Company established a permanent military camp near Hyderabad, which evolved into the garrison city of Secunderabad, named after Nizam Sikandar Jah in 1806.