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Home | Education Today | Industrial Progress Of Hyderabad State

Industrial progress of Hyderabad State

Hyderabad: This article is in continuation to the last article focusing on the Nizams and the modernisation of Hyderabad State. Hyderabad State was known for its embroidery at Aurangabad on fine muslins, chikan, velvet, etc. Blankets and carpets were also produced in Mahabubnagar, Nalgonda and Warangal. Warangal was famous for its carpet industry where silk […]

By Telangana Today
Published Date - 20 July 2022, 11:12 PM
Industrial progress of Hyderabad State
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Hyderabad: This article is in continuation to the last article focusing on the Nizams and the modernisation of Hyderabad State. Hyderabad State was known for its embroidery at Aurangabad on fine muslins, chikan, velvet, etc. Blankets and carpets were also produced in Mahabubnagar, Nalgonda and Warangal. Warangal was famous for its carpet industry where silk and wool carpets were manufactured. The prison artistes manufactured the carpets. At the European exhibition of 1851, samples of carpets and rugs from Warangal were among the finest exhibits.

During the late 19th century, Hyderabad was the biggest exporter of the carpets to the European countries. The paper industry was also one of the important industries of Hyderabad State. The main centres of manufacturing of paper were the city of Hyderabad, Warangal and Medak. The paper manufactured at Kaghazipura was used by the government. The other well-known industry of Hyderabad state was leather. The tanning of leather and manufacture of leather boots, shoes and other articles was carried out by the untouchables madigas.


The artisans of Hyderabad like the goldsmith, carpenters, potters were found in all parts of Telangana. The wood industry as well as basket making, oil pressing and liquor making was also popular in Hyderabad. The metal industry and the making of iron implements were also popular in the region. The blacksmith and the carpenters carried out the making of agricultural and household implements. Iron and steel were the chief mineral resources of Hyderabad state.

Nirmal and Ibrahimpatnam were known for steel. The best quality steel was produced at Konasamudram in Nizamabad districts. Weapons like swords, guns and scissors, knives were the main articles made out of steel.

Among the major industries in the Hyderabad State, the sugar factories were opened at Narayanguda with a capital of Rs.30 lakh in 1901. The fine quality of sugar was manufactured in the Nizams dominion and the imports from Bombay were stopped. The products from the State were sent to the Delhi exhibition in 1903. The industrial manufacturers attracted the attention of European markets in England and France.

The products were judged to be of the best quality in the great exhibitions of 1881 in England and the Paris exhibition in 1900.

The industrial phase of Hyderabad started in 1874 and the commercial policy led to the growth of the many indigenous industries. Hyderabad was generously endowed with natural resources, easy availability of cheap labour and the patronage of the ruler and nobles helped in the advancement of the indigenous industries.

The first mechanical workshop was opened in 1874. By the turn of the century, two railway workshops in Secunderabad, the Mint, a cotton ginning, spinning and weaving factory and a tile factory were set up in Hyderabad. A 1000 kwh thermal power station was set up that stimulated the growth of medium and small power operated industries, such as, cigarettes and button factories, a distillery and an iron foundry.

Between 1929 and 1933 as a result of State encouragement, Hyderabad made industrial progress. In 1929, an Industrial Trust Fund was created with a capital of Rs.10 million to invest in large scale industries and to assist existing units by advancing loans on liberal terms.

The industrial growth of Hyderabad was accelerated during the Second World War. The manufacturers of Hyderabad city enjoyed a protected market in the State, prior to World War-II, new large units, such as, the Paraga Tools, Allwyn Metal Work, were set up to fulfill war time needs. Thousands of workers were employed at a high wage in the factories.

To be continued…
Prof. Adapa Satyanarayana

Retired Professor
Department of History, Osmania University
Ph. 9573405551

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