The history of Hyderabad is traced back to the establishment of the Qutub Shahi dynasty. In 1512 , Quli Qutub Shah seized the reins of power from the Bahamani kingdom and established the fortress city of Golconda which became one of the leading markets in the world of diamonds, pearls, steel for arms, and also printed fabrics. Later due to scarcity of water, and frequent epidemics of plaque and cholera, Mohammad the fifth Quli Qutub Shahi decided to venture outward to establish a new city. Hyderabad's strategic location and Golconda's legendary wealth attracted Aurangazeb, who later captured Golconda in 1687 after a siege that had lasted for eight months. Abul Hasan Tana Shah was the last king of Golconda who was imprisoned at Daulatabad Fort where he was held in captivity for 12 years until he died.
After the Mughal Empire had begun to disintegrate, the viceroy Asaf Jah I proclaimed himself the Nizam and established independent rule in the Deccan.
Hyderabad is a historic city known for its numerous monuments ,temples, churches, mosques, and bazaars. Hyderabad has become a part of the booming service industry revolution and also is in the process of trying to preserve and popularize its rich history.
During the Asif Jahi period, Persian, Urdu, Telgu and Marathi developed simultaneously. The highest official positions were given to the most deserving candidates irrespective of their religion. ‘Persian’ was the official language up till 1893 and then later on Urdu became the official language till1948.
Hyderabad grew both culturally and economically during the rule of the seven Nizams. Huge reservoirs, like the Nizam Sagar, Tungabadra, Osman Sagar, Himayath Sagar, and others were built.
Hyderabad, under the Nizams, was the largest princely state in India. Area wise it was as big as England and Scotland put together. The State had its own currency, mint, railways, and postal system. There was no income tax.
It was after India gained its independence, Hyderabad merged with the Union of India. On November 1, 1956 the map of India was redrawn into linguistic states, and Hyderabad became the capital of Andhra Pradesh.