During The British Raj
By 1801, the Nizam's dominion assumed the shape it is now remembered for: that of a princely state with territories in central Deccan, bounded on all sides by British India, whereas 150 years earlier it had considerable coastline on the Bay of Bengal. During the Mutiny of 1857, Salar Jung chose to side with the British, thereby earning the title of 'Faithful Ally' for Hyderabad. This action causes some regret among modern patriots, because had the Nizam's dominions sided with the rebel forces, the British would have been greatly weakened. Hyderabad was as important to the South of India as Delhi was to the North. However, this did not happen and Hyderabad was one of several independent kingdoms of India to side with the British. In 1857, when the rule of the East India Company came to an end and British India came under the direct rule of the Crown, Hyderabad continued to be one of the most important of the princely states. Twenty years later, Queen Victoria was proclaimed Empress of India.
The seniormost (23-gun) salute state during the period of British India, Hyderabad was an 82,000 square mile (212,000 km²) region in the Deccan, ruled by the head of the Asif Jahi dynasty, who had the title of Nizam and on whom was bestowed the style of "His Exalted Highness" by the British. Development within the state of Hyderabad grew, due to the diligent work of Salar Jung, and the Nizams set up numerous institutions in the name of their dynasty. They founded schools, colleges, madrasas and a university that imparted education in Urdu. Inspired by the elite and prestigious Indian Civil Service the Nizam founded the Hyderabad Civil Service. The pace with which the last Nizam, Osman Ali Khan, amassed wealth made him one of the world's richest men in the 1930s. Carrying a gift, called Nazrana, in accordance with one's net worth while meeting Nizam was a de facto necessity.
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