Asaf Jah I: The Start of the Nizam Dynasty and the Prosperity of Hyderabad
The motivation for Asaf Jah I to gain control over Hyderabad was influenced by a weakening Mughal reign. He was fairly experienced in administration and was a good choice for the move. Asaf Jah I, also known as Mir Qamar-ud-Din Khan, was the founder of the Asaf Jahi dynasty and the first Nizam of Hyderabad. His rule (1724 - 1748) marked the beginning of a powerful and semi-independent princely state under the nominal control of the Mughal Empire.
Wealth of Asaf Jah I
Asaf Jah I implemented an efficient revenue collection system and maintained a strong treasury. Hyderabad's fertile Deccan plateau and productive agriculture contributed significantly to the wealth. This process continued (except for brief periods) throughout the Nizam reign over Hyderabad until 1948.
Hyderabad, being strategically located, prospered through trade routes linking northern India with the south and the ports on both coasts. Asaf Jah I focused on trade over war and territorial expansion, and understood the importance of maintaining good relations with the British.
He issued coins in his own name, symbolizing autonomy from the Mughals, and controlled revenue from land and customs. This allowed Hyderabad to trade on its own terms and reduced exposure to international currency fluctuations.
Another major source of wealth were the Golconda diamond mines. The Nizams, starting with Asaf Jah I, took control of these mines. They produced diamonds such as the Koh-i-Noor, the Seraphim Blue, the Regent, and the Great Mogul Diamonds - some of the most valued diamonds in history.
However, the Nizams did not maintain systematic records of their wealth. Transactions were personal, and theft or loss was hard to track. Notably, the Seraphim Blue and Great Mogul Diamonds have elusive histories, with disputed documentation and unknown current locations. Reputed auction houses require certification by diamond testing institutions before validating any claims.
Development Under Asaf Jah I
Administrative Reforms
He established a centralized administration by dividing his territory into districts, each managed by capable officials.
Military Strength
Asaf Jah I maintained a strong army to preserve Hyderabad's autonomy from Maratha and Mughal threats. It's rumored that his successor, Asaf Jah II, gifted the French a rare diamond for military support - the Seraphim Blue Diamond - which had been worn by Asaf Jah I in a turban ornament. However, no verified documentation exists.
Urban Development
Hyderabad expanded with administrative buildings, markets, and infrastructure. His court became a hub of culture and learning. Architectural development during the Nizam rule combined elegance with practicality.
Patronage of Arts and Culture
Although focused on administration, Asaf Jah I laid the foundation for cultural prosperity under future Nizams. Their patronage of arts, infrastructure, and royal architecture defined Hyderabad's unique legacy.
In essence, Asaf Jah I's leadership transformed Hyderabad from a Mughal province into a semi-independent princely state with a distinct identity that endured until Indian independence.