- Increased factionalism at Mughal Court and increased power of the Hindustani faction led by Sayyid Brothers forced Chin Qilich Khan, leader of Turani group to move away to Deccan.
- In 1724, he assumed the title of Nizam ul Mulk Asaf Jah and started establishing himself as an independent ruler with his base at Hyderabad, the core region of erstwhile Golconda Sultanate.
- He consolidated his hold over six subas in the region. His real power was exercised in coastal districts of Srikakulam, Masulipatnam, Nizamapatnam and eastern regions of Suba of Hyderabad.
- He brought skilled soldiers and administrators from North India and appointed them as mansabdars and granted them jagirs.
- Offices of amin, shiqdar and faujdar were concentrated on one person who was entrusted with collecting revenue and maintaining troops from the revenue he collected.
- He notionally functioned as a Mughal administrator and continued to mint coins in the name of Mughal emperor and mentioned him in Friday prayers till his death in 1748.
- Hyderabad was constantly engaged in a struggle with Marathas (in their west) and with independent Telugu warrior chiefs (Nayakas) of Deccan and South India.
- Struggle for control over Coromandel coast (important for foreign trade and textile production) brought Nizams into conflict with East India Company.
