Hyderabad State (Pre-Accession)

By Seven Oaks -




Hyderabad State Before Accession to the Indian Union (pre-1948)

Before its accession to the Indian Union in 1948, Hyderabad State under the Asaf Jahi Nizams was the largest and wealthiest princely state in British India. Governed independently under British suzerainty, Hyderabad was a cosmopolitan, multi-lingual, and economically progressive state, often considered ahead of many contemporary princely states in terms of infrastructure, education, and administration.

Economic Development

  • Currency & Railways: Hyderabad had its own currency, Hyderabadi Rupee, and an extensive railway network managed by the Nizam's Guaranteed State Railway (NGSR)—one of the few princely states to have such autonomy.

  • Public Institutions: The Nizam established Osmania Bank (1919), which later merged with the State Bank of India, and was the first bank in India to issue credit notes.

  • Industry: Flourishing textile mills, diamond trade (Golconda), and handicrafts supported a robust export economy. Industrial development included the Industrial Trust Fund, set up to promote private enterprise.

  • Revenue Management: Hyderabad had a structured taxation and land revenue system, often seen as more stable and efficient than in neighboring princely states.

Social Indicators

  • Education: The state was home to Osmania University (1918), the first Indian university to offer education in an Indian language (Urdu). Hyderabad’s focus on modern education, both religious and secular, attracted students from across the subcontinent.

  • Healthcare: The Nizams developed state-funded hospitals, including Afzal Gunj Hospital, one of the best-equipped public hospitals in India at the time.

  • Civic Infrastructure: The state built underground drainage systems, planned roads, and the Osman Sagar and Himayat Sagar reservoirs, which regulated water supply and prevented flooding—far ahead of its time.

Governance and Law

  • The Hyderabad Civil Service was a trained bureaucracy modeled partly on the ICS, and the Judicial system had codified laws and structured courts.

  • A progressive legal code included civil rights protections in property, contract, and criminal justice.

Cultural and Religious Harmony

  • Hyderabad had a pluralistic ethos, with Muslims, Hindus, Parsis, and Christians playing prominent roles in administration, education, and commerce.

  • The Nizams, though Muslim rulers, patronized Hindu temples, festivals, and Sanskrit scholars, maintaining relative communal harmony.

Comparison with Other Princely States

Parameter Hyderabad Other Princely States
Area & Population Largest (82,000 sq mi; 17M) Most smaller, less populous
Economy Industrial, own currency Mostly agrarian, few with banks
Education Osmania Univ, tech schools Rarely invested in higher ed
Infrastructure Railways, drainage, water Patchy development, feudal focus
Governance Bureaucratic, legal codes Often feudal and informal
Progressive Acts Women’s hospitals, libraries Lagging social reform

Conclusion

By 1947, Hyderabad was a relatively modern and economically self-sufficient princely state, with civic infrastructure and institutions rivalling those of British-administered provinces. Its refusal to accede immediately to India was partly rooted in its confidence in its functional independence, unlike many smaller princely states that depended heavily on British support or lacked governance capacity.

Sources

  • Karen Leonard, Locating Home: India's Hyderabadis Abroad

  • Narendra Luther, Hyderabad: A Biography

  • Benichou, From Autocracy to Integration

  • Osmania University Archives

  • The Cambridge History of India


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