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The Decline of the Mughal Empire

November 08, 2026
The Mughal Empire ruled most of South Asia in 1700 and lost real power over the next sixty years. Aurangzeb's long Deccan wars, a money crisis among the nobles, rising regional states and invasions weakened Delhi, and the British East India Company filled the gap. The last emperor was exiled in 1858.

Part of: Imperialism: What It Was, Why It Happened, Its Legacy

The Decline of the Mughal Empire

Key facts

When
About 1707 to 1858 (formal end of the dynasty)
Where
Delhi, the Deccan, Bengal and the wider Indian subcontinent
Key people
Aurangzeb, Muhammad Shah, Nader Shah, Ahmad Shah Durrani, Shah Alam II, Bahadur Shah II
Main causes
Deccan wars, jagirdari crisis, regional states, foreign invasions
Turning points
1707 (Aurangzeb dies), 1739 (Nader Shah), 1757 (Plassey), 1765 (Allahabad)
Outcome
British rule over India; last emperor exiled to Rangoon in 1858

Timeline

  1. 1526

    Babur defeats Ibrahim Lodi at the First Battle of Panipat and founds the Mughal Empire.

  2. 1658

    Aurangzeb takes the throne after a war of succession.

  3. 1681

    Aurangzeb moves to the Deccan to fight the Marathas and the southern sultanates.

  4. 1707

    Aurangzeb dies in the Deccan and a succession struggle begins.

  5. 1724

    Nizam-ul-Mulk builds a nearly independent state at Hyderabad.

  6. 1739

    Nader Shah defeats the Mughals at Karnal and takes Delhi, carrying off the Peacock Throne.

  7. 1757

    The East India Company wins the Battle of Plassey in Bengal.

  8. 1761

    Ahmad Shah Durrani defeats the Marathas at the Third Battle of Panipat.

    Also in 1761:More from 1761

  9. 1765

    The Treaty of Allahabad gives the Company the diwani of Bengal, Bihar and Orissa.

  10. 1803

    British forces take Delhi and Shah Alam II comes under Company protection.

  11. 1857

    Sepoys rebel and name Bahadur Shah II as their symbolic leader.

  12. 1858

    Bahadur Shah II is exiled to Rangoon and the Crown takes over rule in India.

In five minutes

The decline of the Mughal Empire was a slow loss of power, not a single collapse. Around 1700 the emperor Aurangzeb ruled most of the Indian subcontinent. By the 1760s Delhi's rulers controlled little beyond the capital. In 1803 the British took charge of Delhi and the emperor, and in 1858 they ended the dynasty for good.

Four things drove the decline: long wars in the Deccan that drained money, a shortage of land revenue to pay the nobles who ran the army, regional rulers who stopped obeying Delhi, and foreign invaders and a trading company that took advantage of the weakness. This article follows them in order. It is part of the wider story of imperialism, because a weak Mughal state opened the way for British rule in India.

The empire at its height

Babur, a ruler from Central Asia, founded the empire in 1526 when he defeated Ibrahim Lodi, the Sultan of Delhi, at the First Battle of Panipat. His grandson Akbar (ruled 1556–1605) built the system that held it together. Nobles called mansabdars were given ranks that fixed how many soldiers and horses they had to supply. They were paid mostly through jagirs, the right to collect land revenue from a set area.

The emperor moved nobles from one jagir to another so that none grew rooted in a single region. Land revenue was collected in silver coin from a huge farming economy, and it paid for the army, the court and great buildings such as the Taj Mahal, built under Shah Jahan.

The system worked as long as the emperor was strong and new conquests gave him land to hand out. Both conditions began to fail under Aurangzeb.

Cause 1: Aurangzeb's long wars (1658–1707)

Aurangzeb took the throne in 1658 after a war of succession against his brothers. In 1681 he moved to the Deccan, in southern India, to fight the Marathas and the sultanates of Bijapur and Golconda. He conquered Bijapur in 1686 and Golconda in 1687, and the empire reached its greatest size.

But the Marathas could not be finished off. Shivaji had been crowned in 1674 and died in 1680. After his son Sambhaji was executed in 1689, Maratha leaders kept fighting a guerrilla war from hill forts. Aurangzeb spent the last 26 years of his life on campaign and died in the Deccan in 1707, aged about 88.

The wars cost enormous sums and kept the emperor far from the north for decades. Revolts by Jats, Sikhs and others added to the strain. Many historians also argue that policies such as the return of the jizya tax on non-Muslims in 1679 deepened distrust among some Rajputs and other groups. They disagree about how much weight religion deserves compared with money and politics.

Cause 2: a money problem among the nobles

New conquests brought in less land than there were nobles to reward, so there were more jagir-holders than good jagirs. Historians call this the jagirdari crisis. Nobles waited years for a worthwhile posting, squeezed the peasants on the land they did get, and often could not afford the soldiers they owed the emperor.

When farmers fled or rebelled, revenue fell even further. Historians such as Satish Chandra and Irfan Habib place this agrarian crisis at the centre of the story. As the emperor's grip loosened, nobles had more reason to protect their own interests than the empire's.

After 1707: weak emperors and rising regions

Aurangzeb's death set off a fight among his sons. Bahadur Shah I won and ruled until 1712, followed by a rapid run of short reigns. Farrukhsiyar (ruled 1713–1719) came to power with the help of the Sayyid brothers, two powerful nobles who made and unmade emperors until Muhammad Shah, who took the throne in 1719, pushed them aside. Court factions fought for control, and money for the army ran short.

Meanwhile governors turned their provinces into near-independent states. Nizam-ul-Mulk, governor of the Deccan, built the base of the future state of Hyderabad in the 1720s. Awadh and Bengal followed the same path. These rulers still swore loyalty to the emperor and sent a little tribute, but they governed for themselves. The Marathas expanded from the west, and in 1737 the Maratha leader Baji Rao I brought an army to the edge of Delhi.

Invasions: Nader Shah and Ahmad Shah Durrani

In 1739 Nader Shah, the ruler of Iran, invaded. He beat the Mughal army at Karnal in February and entered Delhi in March. After a riot in the city, his troops killed many residents, with estimates running to tens of thousands. Nader Shah left in May carrying away vast treasure, including the Peacock Throne and the Koh-i-Noor diamond. Muhammad Shah kept his throne, but everyone had seen how weakly Delhi was defended.

From 1748 Ahmad Shah Durrani, founder of the Afghan Durrani Empire, raided north India several times. At the Third Battle of Panipat in 1761 his army defeated the Marathas, then the strongest power in the north. That ended any chance that the Marathas would take over the Mughal role, and no Indian state filled the gap.

The East India Company steps in

The British East India Company had traded from coastal bases since the 1600s. Now it became a political power. After winning at the Battle of Plassey in 1757 and at Buxar in 1764, the Company made the emperor Shah Alam II sign the Treaty of Allahabad in 1765. It gave the Company the diwani, the right to collect revenue, of Bengal, Bihar and Orissa. A trading company was now taxing one of the richest regions of India in the emperor's own name.

In 1803, during the Second Anglo-Maratha War, British forces took Delhi, and Shah Alam II came under Company protection. The emperor kept his title, a pension and his palace, but not real power. The last emperor, Bahadur Shah II (ruled 1837–1858), was taken up as a symbolic leader by the sepoys in the Indian Rebellion of 1857. After the British retook Delhi they put him on trial and exiled him to Rangoon in Burma, where he died in 1862. In 1858 the British Crown took over the Company's rule in India, and the Mughal line was over.

Two ways to read the decline

Older histories, such as those by Jadunath Sarkar, blamed Aurangzeb and an empire stretched too far. Later work by Satish Chandra and Irfan Habib stressed the jagirdari and agrarian crisis.

Since the 1980s other historians, including Muzaffar Alam and C. A. Bayly, have argued that the 1700s were not simply a time of ruin. Regional states such as Awadh, Bengal and Hyderabad were often prosperous and well run, and on this view the empire's authority passed to them rather than vanishing. The Company then took advantage of a shifting set of states, not of one collapsed empire. Most historians accept parts of all these arguments.

What exams ask

  • Causes: the Deccan wars, the jagirdari crisis, the rise of regional states, foreign invasions and the growth of European trading companies.
  • Dates to know: 1526 (Panipat), 1707 (Aurangzeb's death), 1739 (Nader Shah in Delhi), 1757 (Plassey), 1761 (Third Panipat), 1765 (Allahabad), 1858 (end of the dynasty).
  • Comparison: the Mughals, Ottomans and Safavids are often grouped as gunpowder empires, so you may be asked to compare why each lost power.
  • Significance (AP-style): the British did not conquer a strong, united Mughal state. They exploited a weakened and divided political landscape, which shaped how colonial rule began.

Read next

Frequently Asked Questions

When did the Mughal Empire end?

The empire lost most of its real power between 1707 and the 1760s, and the emperor came under British protection in 1803. The dynasty formally ended in 1858, when the last emperor, Bahadur Shah II, was exiled to Rangoon after the Indian Rebellion of 1857.

Why did the Mughal Empire decline?

Historians point to several linked causes: Aurangzeb's long and costly Deccan wars, a shortage of land revenue to pay nobles, governors who built independent states, invasions by Nader Shah and Ahmad Shah Durrani, and the rise of the East India Company.

Was Aurangzeb to blame for the decline?

He is a major part of the story, since his wars were costly and the empire was largest and most strained under him. But many historians now stress deeper problems with revenue and the rise of regional states, so blaming one ruler is too simple.

What did Nader Shah's invasion change?

In 1739 he defeated the Mughal army, entered Delhi and left with huge treasure, including the Peacock Throne. The emperor survived, but the raid showed that Delhi could not defend itself and damaged its prestige and finances.

How did the British take control from the Mughals?

After Plassey (1757) and Buxar (1764), the Company obtained the diwani of Bengal, Bihar and Orissa in 1765. It took Delhi in 1803 and ended the dynasty in 1858 after the rebellion of 1857.

Check Your Understanding

Pick an answer for each question to see if you were right.

  1. Who founded the Mughal Empire in 1526?

  2. Where did Aurangzeb spend the last 26 years of his life?

  3. What did the Treaty of Allahabad (1765) give the East India Company?

  4. Which invader took the Peacock Throne from Delhi in 1739?

  5. Where was the last Mughal emperor, Bahadur Shah II, exiled?

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About the Writer

Alex Ng
Alex Ng

Software Engineer & Writer

Software engineer with a passion for distilling complex ideas into actionable insights. Writes about finance, investment, entrepreneurship, and technology.

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