Factories were set up in Murshidabad, Dhaka, Patna, Sonargaon, Chittagong, Rajshahi, Cossimbazar, Balasore, Pipeli, and Hugli among other cities, towns, and ports.

The South Indian Kingdom of Mysore led by Tipu Sultan overtook the Nawab of Bengal as the subcontinent's wealthiest monarchy; but this was short-lived and ended with the Anglo-Mysore War.

[14] The Subahdar was in-charge of the nizamat and had a chain of subordinate officials on the executive side, including diwans (prime ministers) responsible for revenue and legal affairs.

Azim-us-Shan, the Mughal viceroy of Bengal, had a bitter power struggle with his prime minister (diwan) Murshid Quli Khan.

After the viceroy's exit, the provincial premier Murshid Quli Khan emerged as the de facto ruler of Bengal.

[citation needed] The Nawab was backed up by the powerful Jagat Seth family of bankers and money lenders.

The Nawabs profited from the revenue generated by the worldwide demand of muslin trade in Bengal, which was centered in Dhaka and Sonargaon.

Bengali cities were full of brokers, workers, peons, naibs, wakils, and ordinary traders.

[21] The Nawabs were patrons of the arts, including the Murshidabad style of Mughal painting, Hindustani classical music, the Baul tradition, and local craftsmanship.

The second Nawab Shuja-ud-Din Muhammad Khan developed Murshidabad's royal palace, military base, city gates, revenue office, public audience hall (durbar), and mosques in an extensive compound called Farrabagh (Garden of Joy) which included canals, fountains, flowers, and fruit trees.

[21] The third Nawab Sarfaraz Khan was preoccupied with military engagements, including Nader Shah's invasion of India.

Nawab Murshid Quli Khan was notorious for his repressive tax collection tactics, including torture for non-payment.

[25] 400,000 civilian Bengalis were massacred by the Bargis (Maratha warriors) including textile weavers, silk winders, and mulberry cultivators.

[28] Alivardi Khan the Nawab of Bengal fearing even worse devastation and destruction agreed to pay Rs.

[29][30] Nawab Murshid Quli Khan was notorious for his repressive tax collection tactics, including torture for non-payment.

The East India Company dispatched a naval fleet led by Robert Clive to regain control of Fort William.

The Nawab also began cooperating with the French East India Company, raising the ire of the British further.

The British, under the leadership of Robert Clive, gained enormous influence over Bengal Subah as a result of the battle.

Mir Qasim attacked British positions in Patna, overrunning the company's offices and killing its Resident.

Mir Qasim allied with Nawab Shuja-ud-Daula of Awadh and Mughal Emperor Shah Alam II.

However, the Mughal allies were defeated at the Battle of Buxar in 1764, which was the last real chance of resisting British expansion across the northern Indian subcontinent.

The South Indian Kingdom of Mysore under Haider Ali and Tipu Sultan briefly eclipsed the dominant position of Bengal in the subcontinent.

Tipu Sultan pursued aggressive military modernization; and set up a company to trade with communities around the Persian Gulf and the Arabian Sea.

[34][35] In 1765, Robert Clive, as the representative of the East India Company, was given the Diwani of Bengal by the Mughal emperor Shah Alam II.

This marked the beginning of Crown rule in India, and the Nawabs had no political or any other kind of control over the territory.

[39] He returned to Bombay in October 1880 and pleaded his case against the orders of the government, but as it stood unresolved the Nawab renounced his styles and titles, abdicating in favour of his eldest son on 1 November 1880.

[14] but were relegated to the status of a zamindar and continued to be a wealthy family, producing bureaucrats and army officers.

[44] According to João de Barros, Bengal enjoyed military supremacy over Arakan and Tripura due to good artillery.