Aurangzeb's son, Bahadur Shah I, repealed the religious policies of his father and attempted to reform the administration. "However, after his death in 1712, the Mughal dynasty sank into chaos and violent feuds. In 1719 alone, four emperors successively ascended the throne", as figureheads under the rule of the Indian Muslim Sayyid king-makers.
During the reign of Muhammad Shah (reigned 1719–1748), the empire began to break up, and vast tracts of central India passed from Mughal to Maratha hands. As the Mughals tried to suppress the independence of the Nizam in the Deccan, he encouraged the Marathas to invade central and northern India. The far-off Indian campaign of Nader Shah, who had previously reestablished Iranian suzerainty over most of West Asia, the Caucasus, and Central Asia, culminated with the Sack of Delhi and shattered the remnants of Mughal power and prestige. Many of the empire's elites now sought to control their own affairs, and broke away to form independent kingdoms.
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| The remnants of the Empire in 1751 |
The Mughal Emperor Shah Alam II (1759–1806) made futile attempts to reverse the Mughal decline but ultimately had to seek the protection of the Emir of Afghanistan, Ahmed Shah Abdali, which led to the Third Battle of Panipat between the Maratha Empire and the Afghans (led by Abdali) in 1761. In 1771, the Marathas recaptured Delhi from Afghan control and in 1784 they officially became the protectors of the emperor in Delhi, a state of affairs that continued until the Second Anglo-Maratha War.
In fiscal terms, the throne lost the revenues needed to pay its chief officers, the emirs (nobles) and their entourages. The emperor lost authority, as the widely scattered imperial officers lost confidence in the central authorities, and made their own deals with local men of influence. The imperial army, bogged down in long, futile wars against the more aggressive Marathas, lost its fighting spirit.
Finally came a series of violent political feuds over control of the throne. After the execution of Emperor Farrukhsiyar in 1719, local Mughal successor states took power in region after region.
Thereafter, the British East India Company became the protectors of the Mughal dynasty in Delhi. The British East India Company took control of the former Mughal province of Bengal-Bihar in 1793 after it abolished local rule (Nizamat) that lasted until 1858, marking the beginning of British colonial era over the Indian subcontinent. By 1857 a considerable part of former Mughal India was under the East India Company's control. After a crushing defeat in the war of 1857–1858 which he nominally led, the last Mughal, Bahadur Shah Zafar, was deposed by the British East India Company and exiled in 1858. Through the Government of India Act 1858 the British Crown assumed direct control of East India Company-held territories in India in the form of the new British Raj. In 1876 the British Queen Victoria assumed the title of Empress of India.
The Bengal Subah province was especially prosperous from the time of its takeover by the Mughals in 1590 until the British East India Company seized control in 1757.Domestically, much of India depended on Bengali products such as rice, silks and cotton textiles. Overseas, Europeans depended on Bengali products such as cotton textiles, silks, and opium; Bengal accounted for 40% of Dutch imports from Asia, for example, including more than 50% of textiles and around 80% of silks.After 150 years of rule by Mughal viceroys, Bengal gained semi-independence as a dominion under the Nawab of Bengal in 1717. The Nawabs permitted European companies to set up trading posts across the region, including firms from Britain, France, the Netherlands, Denmark, Portugal and Austria. An Armenian community dominated banking and shipping in major cities and towns. The Europeans regarded Bengal as the richest place for trade. By the late 18th century, the British displaced the Mughal ruling class in Bengal.
