Hyderabad is the capital of the southern Indian state of Telangana and de jure capital of Andhra Pradesh. Occupying 650 square kilometres (250 sq miles) along the banks of the Musi River, it has a population of about 6.7 million and a metropolitan population of about 7.75 million, making it the fourth most populous city and sixth most populous urban agglomeration in India. At an average altitude of 542 metres (1,778 ft), much of Hyderabad is situated on hilly terrain around artificial lakes.
Established in 1591 by Muhammad Quli Qutb Shah, Hyderabad remained under the rule of the Qutb Shahi dynasty for nearly a century before the Mughals captured the region.
- In 1724, Mughal viceroy Asif Jah I declared his sovereignty and created his own dynasty, known as the Nizams of Hyderabad.
- The Nizam's dominions became a princely state during the British Raj, and remained so for 150 years, with the city serving as its capital.
- The city continued as the capital of Hyderabad State after it was brought into the Indian Union in 1948, and became the capital of Andhra Pradesh after the States Reorganization Act, 1956.
- In 2014, the newly formed state of Telangana split from Andhra Pradesh and the city became joint capital of the two states, a transitional arrangement scheduled to end by 2025.
Hyderabad was historically known as a pearl and diamond trading centre, and it continues to be known as the City of Pearls. Many of the city's traditional bazaars have remained open for centuries. However, industrialization throughout the 20th century attracted major Indian manufacturing, research and financial institutions. Special economic zones dedicated to information technology have encouraged companies from across India and around the world to set up operations, along with the emergence of pharmaceutical and biotechnology industries in the 1990s. With an output of US$74 billion, Hyderabad is the fifth-largest contributor to India's overall gross domestic product.