History

Although Hyderabad was founded less than 500 years ago, archaeologists have unearthed Iron Age sites near the city that could date back to 500 BC. Approximately over 1000 years ago this region was ruled by Kakatiyas. Muhammad Quli Qutb Shah, a ruler of the Qutb Shahi dynasty (the ruling family of the Golconda, previously a feudatory of Bahmani sultanate that declared independence in 1512) founded the city of Hyderabad on the banks of the Musi River in 1591  to relieve a water shortage the dynasty had experienced at its old headquarters at Golconda.  He also ordered the construction of the Charminar.
The Mughal emperor Aurangzeb captured Hyderabad in 1687 and, during this short Mughal rule, Mughal-appointed governors of the city soon gained autonomy. In 1724, Asaf Jah I, who was granted the title Nizam-ul-Mulk ("Governor of the country") by the Mughal emperor, defeated a rival official to establish control over Hyderabad. Thus began the Asaf Jahi dynasty that ruled Hyderabad until a year after India's independence from Britain. Asaf Jah's successors ruled as the Nizams of Hyderabad. The rule of the seven Nizams saw the growth of Hyderabad both culturally and economically. Hyderabad became the formal capital of the kingdom and Golkonda was almost abandoned. Huge reservoirs, like the Nizam Sagar, Tungabhadra, Osman Sagar, and Himayat Sagar, were built. Survey work on Nagarjuna Sagar had also begun during this time; the actual work was completed by the Government of India in 1969. The wealth and grandeur of the Nizams is demonstrated by the fabled Jewels of The Nizams, which is a tourist attraction. The state was the richest and the largest among the princely states of India. The land area of the state was 90,543 mi²; its population in 1901 was 50,073,759. It enjoyed an estimated revenue of £90,029,000.The Chowmahalla Palace was the seat of the Asaf Jahi dynasty and was the official residence of the Nizam.

Before 1947, Hyderabad was under the suzerainty of the British Crown but was not part of British India. In 1947, at the time of the independence of British India and its Partition into the Union of India and the new state of Pakistan, the British abandoned their claim to suzerainty over the Princely states and left them to decide their own future. The Nizam, because of Islamic leanings, wished either to remain independent or to accede to Pakistan. However, for the Indian Union, this was unacceptable from a strategic perspective. The Nizam's efforts also triggered the largest agrarian armed rebellion in modern Indian history. To deter the Nizam, Indian union chose to implement an economic blockade, which forced the state of Hyderabad to sign a Standstill Agreement with it. Eventually the Indian Union used military force against the landlocked princely state of Hyderabad. This operation, termed Operation Polo, was successful and on 17 September 1948, the Nizam signed an Instrument of Accession to the Union of India.
Tomb of Muhammad Quli Qutb Shah in Hyderabad, India.

In 1955, Ambedkar was so impressed with amenities of Hyderabad that he argued to make Hyderabad a second capital of India. He said, "Hyderabad has all the amenities which Delhi has and it is a far better city than Delhi. It has all the grandeur which Delhi has. Buildings are going cheap and they are really beautiful buildings, far superior to those in Delhi. The only thing that is wanting is a Parliament House which the Government of India can easily build."
On 1 November 1956, the states of India were reorganized on linguistic grounds. The territories of the State of Hyderabad were divided between newly created Andhra Pradesh, Bombay state (later Maharashtra), and Karnataka. The Telugu speaking area of Hyderabad state, also known as Telangana, was merged with the Telugu speaking state of Andhra state to create Andhra Pradesh. Thus, Hyderabad became the capital city of the new state of Andhra Pradesh.
Since liberalisation in the 1990s, Hyderabad has become one of the major hubs of the IT industry. The growth in the IT sector and opening of Rajiv Gandhi International Airport attracted activity in other economic sectors like real estate in the 2000s. However, the Global financial crisis of 2008–2009 has had a significant impact on construction activity.