Do you know when Indian rulers lost a battle against the East India Company, they used to pay the compensation amount in lakhs in the 1700s to the company? Imagine the wealth our country had during that time , which was eventually looted by the British. In this EduRev document, you will read about the conditions that prevailed when the Company entered India and how the great Mughal empire came to decline and how weak was the administration during that period.

- In the first half of the eighteenth century, the once-mighty Mughal Empire, which had been the dominant power in large parts of the subcontinent for nearly two centuries, experienced a marked decline.
- The reign of Aurangzeb (1658–1707) is often regarded as the beginning of this decline. His policies, considered by many as misguided, weakened the stability of the state.
- After Aurangzeb’s death, the empire disintegrated faster because of succession struggles, weak and often short-lived monarchs, and the rise of powerful regional forces.
- Muhammad Shah, who ruled for a lengthy period of 29 years (1719-1748), was unable to revive the imperial fortunes. His incompetence as a ruler further contributed to the challenges faced by the Mughal Empire during this period.
Challenges before the Mughals
External Challenges
The Mughal north-western frontiers were increasingly neglected in the later period; inadequate frontier defence and internal weakness invited repeated invasions from Central Asia and Persia.

Nadir Shah’s Invasion (1738–39)
- Nadir Shah (Nader Shah), the Persian ruler, invaded India in 1738–39.
- He defeated the Mughal army at Karnal on 13 February 1739 and subsequently entered and looted Delhi.
- Muhammad Shah was captured; Delhi was plundered and many priceless items-such as the Peacock Throne and the Kohinoor diamond-were taken to Persia.
- Vast sums-reportedly around seventy crore rupees-were collected from the imperial treasury and nobles.
Ahmad Shah Abdali’s Invasions (1748–1767)
- Ahmad Shah Abdali, the elected successor of Nadir Shah, invaded India multiple times.
- The Mughals attempted to buy peace in 1751-52 by ceding Punjab to Abdali.
- In 1757 Abdali captured Delhi and installed Afghan agents; he recognised Alamgir II as emperor and appointed Najib-ud-Daula as Mir Bakhshi.
- Abdali acknowledged Alamgir II as the Mughal emperor and appointed Najib-ud-Daula as Mir Bakhshi.
- Najib-ud-Daula acted as the personal 'supreme agent’ of Abdali.
- In 1761 Abdali defeated the Marathas at the Third Battle of Panipat, a conflict that severely damaged Maratha power and further fragmented politics in northern India.
- Abdali's last invasion occurred in 1767.
Why Many Empire-shaking Battles at Panipat?
- Panipat and the nearby area, now in Haryana, are located on the banks of the Yamuna River and lie between the fertile plains of the Ganga and Indus rivers. This region has seen many battles that have significantly influenced the history of India.
- The First Battle of Panipat occurred in 1526 between Babur and Ibrahim Lodi. This battle marked the beginning of the Mughal Empire by ending the rule of the Delhi Sultanate.
- The Second Battle of Panipat took place in 1556 between Akbar and Hemu; its outcome favored the continuation of Mughal rule.
- The Third Battle of Panipat occurred in 1761 between the Marathas and Ahmad Shah Abdali, which ended the Maratha ambition to dominate India.
Reasons Why Panipat Was a Popular Battlefield
- Panipat’s strategic location made it a preferred site for battles. One side usually arrived from the north or north-west via the Khyber Pass to gain control of Delhi, the political centre of northern India. Moving an army through challenging terrains, like the Rajasthan deserts or the dense forests of the north, was risky. Therefore, rulers in Delhi viewed Panipat as a favorable battleground.
- Being close to Delhi allowed Indian rulers to easily transport weapons, troops, and food supplies to the battlefield while keeping the capital safe from direct conflict.
- The flat terrain around Panipat was ideal for cavalry movements, which were the main form of warfare at that time.
- After Sher Shah Suri built the Grand Trunk Road between 1540 and 1545, Panipat became a key stop on this route, making it easier for conquerors to reach the area.
- The monsoon season in this region is relatively short compared to other places, making it easier to conduct battles.
- The local artisans and smiths were skilled in producing materials for warfare, allowing both sides to quickly restock their resources during conflicts.
Weak Rulers after Aurangzeb—An Internal Challenge
The Mughal Empire faced significant challenges after the reign of Aurangzeb, particularly due to weak leadership and internal strife. The emperors who followed Aurangzeb struggled to maintain control and authority over the vast empire.
Important Emperors and Developments
Bahadur Shah I (1709-March 1712):
- After a nearly two-year-long war of succession, the 63-year-old Prince Muazzam, the eldest son of Aurangzeb, became the emperor, taking the title Bahadur Shah. (He was later called Bahadur Shah I.)
- He adopted a peaceful policy with the Marathas, the Rajputs, and the Jats.
- The Sikh leader Banda Bahadur attacked Muslims in Punjab, and Bahadur Shah I took action against him.
- Bahadur Shah I died in February 1712.
Jahandar Shah (March 1712-February 1713):
- With the help of Zulfikar Khan, Jahandar Shah became the emperor, and Zulfikar Khan was appointed prime minister.
- Jahandar Shah abolished Jizya tax.
Farrukhsiyar (1713-1719):
- After killing Jahandar Shah with the help of Sayyid brothers—Abdulla Khan and Hussain Ali (known as the King Makers), Farrukhsiyar became the new emperor.
- He followed a policy of religious tolerance by abolishing Jaziya and the pilgrimage tax.
- In 1717 AD, Farrukhsiyar issued a farman to the British granting them the right to reside and trade in Bengal.
Rafi-ud-Darajat (February 28 to June 4, 1719):
- He ruled for the shortest period in Mughal history.
Rafi-ud-Daula (June 6 to September 17, 1719):
- The Sayyid brothers placed Rafi-ud-Daula with the title Shah Jahan II on the throne. The new emperor was an opium addict.
Muhammad Shah (1719-48):
- In 1724, Nizam-ul-Mulk became the wazir and founded the independent state of Hyderabad.
- In 1739, Nadir Shah defeated the Mughals in the Battle of Karnal.
Ahmad Shah (1748-1754):
- Udham Bai, the 'Queen Mother,' was given the title of Qibla-i-Alam.
Alamgir II (1754-1758):
- Ahmed Shah Abdali, the Iranian invader, reached Delhi in January 1757.
- During his reign, the Battle of Plassey was fought in June 1757.

Shah Jahan III (ruled 1759–60)
- Muhiul-millat is another name for him.
- He became king due to political schemes in Delhi.
- Later, he was removed from power with the help of the Marathas.
Shah Alam II (ruled Oct. 1760–July 1788; Oct. 1788–Nov. 1806)
- His reign saw two decisive battles—the Third Battle of Panipat (1761) and the Battle of Buxar (1764).
- In the Treaty of Allahabad (August 1765), he was taken under the East India Company’s protection and resided at Allahabad.
- He issued a Farman granting the Company in perpetuity the Diwani (the right to collect revenue) of Bengal, Bihar, and Orissa.
Akbar II (1806-37):
- He gave the title of Raja to Ram Mohan Rai.
- In 1835, the coins bearing the names of Mughal emperors were stopped.
Bahadur Shah II (1837-1857):
- Bahadur Shah Zafar, the last Mughal emperor.
- Captured by the English and sent to Rangoon, where he died in 1862.
- The Mughal Empire came to an end on November 1, 1858, with the declaration of Queen Victoria.
Question for Spectrum Summary: India on the Eve of British Conquest
Try yourself:During which Mughal rulers reign Battle of Plassey was fought?
Explanation
Alamgir II reign was between 1754 to 1758 and the Battle of Plassey was fought in 1757.
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Causes of Decline of the Mughal Empire
- Mughal-centric perspective: Problems internal to the imperial structure-administrative decay, jagirdari crisis, revenue shortfalls, factionalism among nobles-caused decline.
- Regional perspective: The rise of powerful provincial and regional polities, local rebellions and the growth of autonomous chiefs fragmented imperial control.
- Failure of successors: Many emperors after Aurangzeb proved weak or incapable, accelerating disintegration through court factionalism and short reigns.
Major Factors Which Contributed to Downfall
- Shifting allegiance of zamindars: Zamindars (also called rais, rajas, thakur, khuts, deshmukh) were hereditary landholders and local revenue agents. During periods of imperial weakness they asserted independence or shifted allegiance to more powerful regional masters.
- Jagirdari crisis: The Mughal system relied heavily on the nobility (jagirdars) for administration and military obligations. Over time the jagir system deteriorated: arrears, overlapping assignments, and increased number of claimants weakened revenue flows and military efficiency.
- Factionalism among nobility: Divisions based on religion, region, tribe and personal rivalry produced instability at the court and in provinces.
- Rise of regional aspirations: The increasing power and ambitions of the Marathas, reassertion by Rajputs, the growth of Sikh, Jat and other local polities undermined Mughal territorial control.
- Economic and administrative problems: State expenditure began to exceed income; mismanagement, corruption and loss of revenue sources impaired the imperial administration.
Rise of Regional States
- Successor States- The Mughal provinces that turned into states after breaking away from the empire. Awadh, Bengal and Hyderabad.

- Independent kingdoms: Regions where localized polities consolidated power-examples include Mysore, Kerala (Travancore), and various Rajput principalities.
- New states: Polities formed by rebels and rising groups such as the Marathas, Sikhs, and Jats.
Question for Spectrum Summary: India on the Eve of British Conquest
Try yourself:Who gave the title Raja to Rammohan rai?
Explanation
Akbar II gave the title of Raja to Rammohan Rai. He was famous for his involvement in abolition of sati.
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Survey of Regional Kingdoms
Hyderabad
- The Asaf-Jah dynasty was founded by Kilich Khan, popularly known as Nizam-ul-Mulk.
- The idea of an independent state in the Deccan was earlier advanced by Zulfikar Khan, but it was Nizam-ul-Mulk who established effective autonomy.
- He defeated Mubariz Khan at the Battle of Shakar Kheda (1724) and in 1725 became viceroy and took the title Asaf-Jah, founding the independent state of Hyderabad.
Awadh (Oudh)
- Saadat Khan (Burhan-ul-Mulk) founded the independent principality of Awadh.
- Safdar Jang succeeded as Nawab and consolidated the state; Awadh became an important and relatively autonomous province.
Bengal
- Murshid Quli Khan (Murshid Kuli Khan) laid foundations of an independent Bengal administration in the early 18th century.
- He was succeeded by Shuja-ud-Din in 1727. In 1740 Sarfaraz Khan was defeated and killed by Alivardi Khan, the deputy governor of Bihar, who became the effective ruler of Bengal.
The Rajputs
- The Rajputs tried to reassert independence during the 18th century; Bahadur Shah I marched against Ajit Singh (1708) and allied actions with Jai Singh II and Durgadas Rathore temporarily restored order.
- At times Rajput influence extended from south of Delhi to the western coast, though their political fortunes varied regionally.
Mysore
- The Wodeyars were the traditional rulers of Mysore, a territory at the junction of the Eastern and Western Ghats.
- Haider Ali rose to power in the mid-18th century and effectively took control of Mysore, setting the stage for later rule by Tipu Sultan.
Kerala (Travancore)
- Martanda Varma established Travancore as an independent state and expanded its boundaries from Kanyakumari to Cochin, consolidating power in southern Kerala.
The Jats
- Churaman and Badan Singh laid the foundations of the Jat state of Bharatpur.
- Under Suraj Mal the Jat power reached its zenith; territories extended from the Ganga in the east to the Chambal in the south, covering former subahs like Agra, Mathura, Meerut and Aligarh.
- The Jat state declined after Suraj Mal’s death in 1763.
The Sikhs
- Guru Gobind Singh transformed the Sikhs into a militant sect in defence of their religion and liberties.
- Banda Bahadur later assumed the leadership of the Sikhs in 1708.
- 12 misls or confederacies which exercised control over different parts of the kingdom.
- The credit for establishing a strong kingdom of Punjab goes to Ranjit Singh. He was the son of Mahan Singh, the leader of the Sukarchakiya misl. Ranjit Singh brought under control the area extending from the Sutlej to the Jhelum. He conquered Lahore in 1799 and Amritsar in 1802.
- In The Treaty of Amritsar with the British, Ranjit Singh acknowledged the British right over the cis-Sutlej territories.
- The Tripartite Treaty in 1838 with Shah Shuja and the English Company whereby he agreed to provide passage to the British troops through Punjab to place Shah Shuja on the throne of Kabul. Ranjit Singh died in 1839.
Question for Spectrum Summary: India on the Eve of British Conquest
Try yourself:Which of the following state is not a successor of the Mughal empire?
Explanation
Mysore was an independent kingdom not a successor of Mughal empire.
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The Marathas
- Under the leadership of the Peshwas, the Marathas uprooted Mughal authority in regions such as Malwa and Gujarat and established extensive influence across central and north India.
- Their expansion was checked temporarily by Ahmad Shah Abdali at the Third Battle of Panipat (1761), which inflicted a severe blow to Maratha ambitions.
Rohilakhand and Farukhabad
- The Afghan migrations into India produced new local polities such as Rohilkhand and the Bangash territories.
- Ali Muhammad Khan established the state of Rohilkhand in the Himalayan foothills between Kumaon and the Ganga.
- Mohammad Khan Bangash, an Afghan adventurer, set up an independent kingdom around Farrukhabad to the east of Delhi.
Nature and Limitations of Regional States
- The new political system was regional and collaborated with various local groups, such as zamindars, merchants, local nobles, and chieftains.
- Provincial rulers generally failed to build stable financial, administrative and military institutions comparable to an effective centralised state.
- The jagirdari crisis continued and intensified as agricultural incomes declined and more claimants sought shares of the surplus, weakening both revenue collection and military recruitment.
Socio-Economic Conditions
Agriculture
- Agriculture remained the mainstay of the economy. Farming was technologically backward but sustained by intensive manual labour of peasants.
Trade and Industry
- India was a major producer and exporter of textiles and many other goods; it attracted precious metals and was often described as a "sink" for such metals because of import–export balances.
- Items of import: From the Persian Gulf-pearls, raw silk, wool, dates, dried fruits, rose water; from Arabia-coffee, gold, drugs, honey; from China-tea, sugar, porcelain, silk; from Tibet-gold, musk, woollen cloth; from Africa-ivory and drugs; from Europe-woollen cloth, copper, iron, lead, paper.
- Items of export: Cotton textiles, raw silk and silk fabrics, hardware, indigo, saltpetre, opium, rice, wheat, sugar, pepper and other spices, precious stones and medicinal drugs.
Important Centres of Textile Industry
- (i) Dacca, Murshidabad, Patna, Surat, Ahmedabad, Broach, Chanderi, Burhanpur, Jaunpur, Varanasi, Lucknow, Agra, Multan, Lahore, Masulipatnam, Aurangabad, Chicacole, Vishakhapatnam, Bangalore, Coimbatore, Madurai, etc.; Kashmir was a centre of woollen manufactures.
Shipbuilding and Maritime Trade
- Shipbuilding flourished in Maharashtra, the Andhra region and Bengal; the Kerala coast (Calicut, Quilon) sustained active shipping and maritime trade.
- The Zamorin of Calicut employed the Muslim naval captains known as the Kunjali Marakkars for naval defence and trade protection.
Status of Education
- Elementary Hindu and Muslim schools were called pathshalas and maktabs/mastabas respectively; instruction was mainly in reading, writing and arithmetic.
- Chatuspathis (Bihar and Bengal) and traditional Sanskrit centres in Kasi (Varanasi), Tirhut (Mithila), Nadia and Utkala provided higher learning in Sanskrit. Madrasas offered higher education in Persian and Arabic; Azimabad (Patna) was known for Persian learning.
Question for Spectrum Summary: India on the Eve of British Conquest
Try yourself:Who were involved in 3rd Battle of Panipat?
Explanation
It was fought between Maratha and the invading afghan army led by Ahmad Shah Abdali. Afghan army were victorious in this battle.
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Societal Setup
- Many Castes, Many Sects
(i) The family system was primarily patriarchal, and caste was the central feature of the social life of the Hindus.
(ii) The Sharif Muslims consisting of nobles, scholars, priests and army affairs often looked down upon the ajlaf Muslims or the lower-class Muslims. - Position of Women in Society
(i) Upper-class women remained at home, and lower-class women worked in fields and outside their homes supplementing the family income.
(ii) purdah, sati, child marriage, and polygamy did exist which hindered the progress of women. - Menace of slavery
(i) Higher classes of Rajputs, Khatris and Kayastha kept women slaves for domestic work.
Development in Art, Architecture and Culture
- In Lucknow, Asaf-ud-Daula built the Bara Imambara (1784), an important example of late Mughal‑era provincial architecture.
- Sawai Jai Singh of Jaipur founded the modern city of Jaipur ("the Pink City") and constructed five astronomical observatories at Delhi, Jaipur, Varanasi, Mathura and Ujjain. He also compiled astronomical tables called Jij Muhammad Shahi.
- In Kerala the Padmanabhapuram Palace is noted for its traditional architecture and mural paintings.
- Regional literature and poetic traditions flourished: Kanchan Nambiar in Malayalam; Thayumanavar (1706–1744) in Tamil devotional/siddhar traditions; the Punjabi romantic epic Heer Ranjha was consolidated by Waris Shah; in Sindhi literature Shah Abdul Latif composed the Risalo.
As said in the previous document on how the company benefited by wars between different kingdoms. This document should have cleared your doubts and questions. In the next EduRev document, you will read about major events and treaties on how the company got control over Bengal region and what different administrative and economic changes were introduced.
Question for Spectrum Summary: India on the Eve of British Conquest
Try yourself:What was one of the major causes of the decline of the Mughal Empire?
Explanation
The decline of the Mughal Empire was influenced by several factors. One of the major causes was:
- The rise of regional aspirations and the emergence of regional states.
- This led to a decrease in central control as regions sought greater autonomy.
- Local rulers and nobility began to assert their power, weakening the overall authority of the Mughal rulers.
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