Hyderabad was one of the independent Indian states which came under the control of East India Company without a direct war. It came under British influence by signing the Subsidiary Alliance with the East India Company in 1798.
The Hyderabad State was founded by Nizam-ul-Mulk. He was originally appointed as the governor of the Deccan by the Mughal Emperor. After the decline of the Mughal Empire, Nizam-ul-Mulk started ruling independently. The dynasty founded by him is known as the Asaf Jahi dynasty, as he was also known as Asaf Jah, and the rulers of Hyderabad were called Nizam.
The loss of independence of Hyderabad was gradual. In the 18th century, Hyderabad faced pressure from the Marathas, Mysore, and the East India Company. After winning the Battle of Buxar (1764), the East India Company secured the Northern Circars through a firman from the Mughal Emperor, although these territories were earlier under the control of the Nizam. Under pressure, the Nizam had to cede the Northern Circars to the British, though the Company agreed to pay some money.
Hyderabad also faced continuous Maratha aggression and was defeated several times. The Nizam was forced to pay Chauth to the Marathas. In the Battle of Kharda (1795), the Nizam was again defeated by the Marathas and had to pay indemnity and cede some territories.
Insecurity due to threats from the Marathas and Mysore forced the Nizam to enter into a Subsidiary Alliance in 1798. Under this alliance, a British force was stationed in Hyderabad, and a permanent British Resident was appointed. Hyderabad lost control over its foreign policy and could not declare war without the permission of the East India Company. This was the first Subsidiary Alliance entered by the Company with an Indian state.
Hyderabad was unable to pay the cost of maintaining the British army. Therefore, the Rayalaseema region was ceded to the East India Company and became part of the Madras Presidency. Later, due to financial difficulties, Hyderabad had to cede Berar to the British in 1853.
Thus, after 1800, Hyderabad became a dependent princely state under British control.
