[9] The native inhabitants of Hyderabad State, regardless of ethnic origin, are called "Mulki" (countryman), a term still used today.

Hyderabad's location in the middle of the Indian Union, as well as its diverse cultural heritage led to India's annexation of the state in 1948.

[12] Subsequently, Mir Osman Ali Khan, the seventh Nizam, signed an instrument of accession, joining India.

[20] In 1798, Nizam ʿĀlī Khan (Asaf Jah II) was forced to enter into an agreement that put Hyderabad under British protection.

Before this time, there was no regular or systematic form of administration, and the duties were in the hands of the Diwan (Prime Minister), and corruption was thus widespread.

[28][29][30] His reign saw the official language of Hyderabad State shift from Persian to Urdu, a change implemented in the 1880s during the short tenure of Prime Minister Salar Jung II.

Initially, it was used as a domestic and international airport for Nizam's Deccan Airways, the earliest airline in British India.

The Osmania General Hospital, Jubilee Hall, State Library (then known as Asifia Kutubkhana) and Public Gardens (then known as Bagh e Aam) were constructed during this period.

On 11 June 1947, the Nizam issued a declaration to the effect that he had decided not to participate in the Constituent Assembly of either Pakistan or India.

[44] On 21 August 1948, the Secretary-General of the Hyderabad Department of External Affairs requested the President of the United Nations Security Council, under Article 35(2) of the United Nations Charter, to consider the "grave dispute, which, unless settled by international law and justice, is likely to endanger the maintenance of international peace and security".

[46] The Nizam also appealed, without success, to the British Labour Government and to the King for assistance, to fulfil their obligations and promises to Hyderabad by "immediate intervention".

The representative of Hyderabad called for immediate action by the Security Council under Chapter VII of the United Nations Charter.

The Government of Hyderabad resigned, and military governors and chief ministers were appointed by the Nizam at India's direction.

Wilfred Cantwell Smith states that Hyderabad was an area where the political and social structure from medieval Muslim rule had been preserved more or less intact into modern times.

The state also owned 50% or more of the capital in all the major enterprises, allowing the Nizam to earn further profits and control their affairs.

[62][63] The state government also had a large number of outsiders (called non-mulkhis) – 46,800 of them in 1933, including all the members of the Nizam's Executive Council.

[65][66] Himayat Ali Mirza, great-grandson of the Nizam, remarked that his stake in the English state sums up to 36% of the total amount.

[65] For claiming the total share of £35 million, Nizam's great-grandson, Himayat Ali Mirza, reached the London High Court.

In that year, following British pressure, the Nizam issued a firman appointing a special officer to investigate constitutional reforms.

The abolition of the Sultanate in Turkey and Gandhi's suspension of the Non-co-operation movement in British India ended this period of cooperation.

Alarmed by its activities, the Nizam passed a powerful gagging order in 1929, requiring all public meetings to obtain prior permission.

But the organisation persisted by mobilising on social issues such as the protection of ryots, women's rights, abolition of the devadasi system and purdah, uplifting of Dalits etc.

[69] Notable units during his reign included British-trained battalions,[70] the French-trained Corps Français de Raymond which was led by Michel Joachim Marie Raymond and fought under the French Tricolour, and the Victorious Battalion, an elite infantry unit entirely composed of women.

[71] The coat of arms features the full titles of the Nizam at the bottom, and a dastar[citation needed] Under the leadership of Asaf Jah V the state changed its traditional heraldic flag.

The writing in the middle reads "Nizam-ul-Mulk Asaf Jah" The stamps of the Hyderabad State featured the Golconda Fort, Ajanta Caves, and the Charminar.

The earliest surviving buildings are purely European, examples being the neoclassical British Residency (1798) and Falaknuma Palace (1893).

In the early 20th century, the Osmania General Hospital[78] City College, High Court, and Kacheguda Railway station were designed in the Indo-Saracenic style by Vincent Esch.

[79] Various major industries emerged in various parts of the State of Hyderabad before its incorporation into the Union of India, especially during the first half of the twentieth century.