Detailed Concept Breakdown
7 concepts, approximately 14 minutes to master.
1. Rise of the Peshwas: From Ministers to De Facto Rulers (basic)
Welcome! To understand the 18th-century Maratha Empire, we must look at a fascinating political transformation: the shift of power from the Chhatrapati (the King) to the Peshwa (the Prime Minister). Originally, the Peshwa was merely one of the eight ministers in Shivaji Maharaj’s Ashta Pradhan council, and the office was neither hereditary nor supreme History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.231. However, after the death of Aurangzeb in 1707 and the release of Shahu (Shivaji’s grandson), the internal dynamics of the Maratha state changed dramatically.
The true architect of this rise was Balaji Vishwanath (1713–1720). Starting as a humble revenue official, he used his diplomatic genius to consolidate Shahu’s position against rivals and win over powerful Maratha Sardars (chiefs) Modern India, Bipin Chandra, Indian States and Society in the 18th Century, p.29. In 1713, Shahu appointed him Peshwa, and over time, Balaji made the office supreme and hereditary. By intervening in Mughal politics—most notably helping the Sayyid brothers overthrow Emperor Farrukh Siyar in 1719—the Peshwas proved that they were no longer just regional ministers but kingmakers on a pan-Indian scale History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.235.
1713 — Balaji Vishwanath appointed Peshwa; begins the era of Peshwa dominance.
1720–1740 — Baji Rao I expands Maratha power into North India under the banner of "Hindu Pad Padshahi."
1750 — The Sangola Agreement effectively makes the Peshwa the de facto head of the Maratha Confederacy.
As the authority of the Chhatrapati declined, the Peshwas moved the administrative capital to Pune, leaving the King as a titular figurehead in Satara. This era saw massive expansion, but it also changed the nature of the Maratha state. It became a Confederacy where powerful chiefs like the Scindias (Gwalior) and Holkars (Indore) operated with significant autonomy Exploring Society: India and Beyond, Social Science, Class VIII. NCERT(Revised ed 2025), The Rise of the Marathas, p.70. While this allowed for rapid conquests in places like Bengal and Mysore, the lack of central discipline eventually made the empire vulnerable to internal friction and British intervention.
Key Takeaway The rise of the Peshwas represents a transition from a centralized monarchy under the Chhatrapati to a decentralized confederacy ruled de facto by hereditary Prime Ministers.
Sources:
History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.231, 235; Modern India, Bipin Chandra, Indian States and Society in the 18th Century, p.29; Exploring Society: India and Beyond, Social Science, Class VIII. NCERT(Revised ed 2025), The Rise of the Marathas, p.70
2. Mughal Decline and the 'King-makers' Era (intermediate)
After the death of Aurangzeb in 1707, the Mughal Empire didn't just collapse; it transformed into a stage for intense factional politics. The central authority of the Emperor withered, and real power shifted into the hands of powerful nobles. The most prominent among these were the Sayyid Brothers—Abdullah Khan (the Wazir) and Hussain Ali Khan (the Mir Bakshi). Known in history as the 'King-makers', they essentially decided who would sit on the Peacock Throne, treating emperors as mere puppets to safeguard their own positions Modern India, Bipin Chandra, The Decline of the Mughal Empire, p.3.
The era of the Sayyid Brothers is historically significant for two reasons. First, they recognized that the Empire could no longer be governed by narrow communal policies. To stabilize their rule, they adopted a policy of religious tolerance, abolishing the hated Jizya tax and seeking alliances with Hindu chiefs, including the Rajputs and the Marathas Modern India, Bipin Chandra, The Decline of the Mughal Empire, p.5. Second, their reign marked the first time a Mughal Emperor was deposed and killed by his own nobles. In 1719, they allied with the Maratha Peshwa, Balaji Vishwanath, to overthrow and execute Emperor Farrukh Siyar, whom they found too erratic and ungrateful to control.
However, this 'King-maker' system created a fatal instability at the heart of the Empire. As the brothers placed short-lived emperors like Rafi-ud-Darajat and Rafi-ud-Daula (Shah Jahan II) on the throne, other noble factions—specifically the Turani faction led by Nizam-ul-Mulk—grew jealous and fearful A Brief History of Modern India, SPECTRUM, India on the Eve of British Conquest, p.63. Eventually, in 1720-22, these rival nobles conspired with the young Emperor Muhammad Shah 'Rangeela' to assassinate the brothers. While the 'King-makers' were gone, the damage was done: the prestige of the Emperor was shattered, and the door was wide open for provincial governors to break away and form successor states.
1713 — Sayyid Brothers help Farrukh Siyar take the throne.
1719 — Sayyid Brothers, with Maratha help, depose and kill Farrukh Siyar.
1719-1720 — Rapid succession of puppet emperors (Rafi-ud-Darajat, Rafi-ud-Daula).
1722 — End of Sayyid dominance; Muhammad Shah takes real control with Nizam-ul-Mulk's help.
Key Takeaway The 'King-maker' era signaled the shift of sovereignty from the Mughal Emperor to competing noble factions, leading to the administrative paralysis that allowed regional powers to emerge.
Sources:
Modern India, Bipin Chandra, The Decline of the Mughal Empire, p.3-5; A Brief History of Modern India, SPECTRUM, India on the Eve of British Conquest, p.63
3. Maratha Expansion in the East: Bengal and Orissa (intermediate)
During the mid-18th century, the Maratha Empire, having consolidated its hold over Central India and the Deccan, turned its gaze toward the fertile and wealthy provinces of the East. This expansion was primarily spearheaded by
Raghoji Bhonsle of Nagpur, rather than the Peshwa himself. The Maratha incursions into Bengal, which began in 1741, were characterized by swift cavalry raids that caused significant administrative and economic distress to the regional government.
At the time, Bengal was ruled by
Alivardi Khan, a capable administrator who had seized the throne in 1741 after defeating Sarfaraz Khan
Rajiv Ahir, A Brief History of Modern India, p.87. For nearly a decade, Alivardi Khan was locked in a grueling conflict with the Maratha forces. These raids were so frequent and disruptive that the English merchants in Calcutta sought permission from the Nawab to dig a defensive moat, known as the
Maratha Ditch, around Fort William to protect their interests
Rajiv Ahir, A Brief History of Modern India, p.87.
The conflict finally reached a resolution in
1751 during the tenure of
Peshwa Balaji Baji Rao (also known as Nana Saheb). Exhausted by constant warfare and internal rebellions, Alivardi Khan signed a peace treaty with the Marathas. Under the terms of this agreement, the Nawab ceded the province of
Orissa to the Marathas and agreed to pay an annual sum of 1.2 million rupees (12 lakh) as
Chauth (a tribute representing one-fourth of the revenue) for Bengal and Bihar. This treaty effectively marked the climax of Maratha territorial expansion in Eastern India.
1741 — Alivardi Khan becomes Nawab of Bengal; Maratha raids begin.
1742 — Construction of the 'Maratha Ditch' by the British in Calcutta.
1751 — Treaty signed ceding Orissa to the Marathas and fixing the Chauth payment.
Key Takeaway The Maratha expansion in the East concluded with the 1751 treaty, where Alivardi Khan ceded Orissa and agreed to pay Chauth to the Marathas to buy peace for Bengal.
Sources:
A Brief History of Modern India (Spectrum), Expansion and Consolidation of British Power in India, p.87; Modern India (Bipan Chandra NCERT), Indian States and Society in the 18th Century, p.19
4. Southern Rivalry: Marathas vs the Kingdom of Mysore (intermediate)
To understand the 18th-century South, we must look at the collision between the
Maratha Confederacy and the
Kingdom of Mysore. Following the collapse of the Vijayanagar Empire in 1565, the Wodeyar dynasty established a small feudatory state in Mysore
History, class XI (Tamilnadu state board 2024 ed.), Early Resistance to British Rule, p.279. However, by the mid-1700s, Mysore found itself squeezed between two expanding powers: the Marathas to the North and the Nizam of Hyderabad to the East. This pressure led to financial instability and political weakness, creating a vacuum that was eventually filled by a brilliant military officer,
Haidar Ali, who became the de facto ruler in 1761
Rajiv Ahir, A Brief History of Modern India (2019 ed.), Expansion and Consolidation of British Power in India, p.95.
The rivalry intensified because both states were competing for the same fertile territories in the Tungabhadra-Krishna doab. Under Peshwa Balaji Baji Rao (Nana Saheb), the Marathas had already begun forcing Mysore to pay tribute Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Indian States and Society in the 18th Century, p.31. While the Marathas suffered a massive blow at the Battle of Panipat in 1761, they recovered remarkably quickly under the young and capable Peshwa Madhavrao I.
Between 1764 and 1772, Madhavrao I led several successful expeditions against Haidar Ali. Despite Haidar's tactical brilliance, the Maratha cavalry and military discipline proved superior in these encounters. Haidar Ali was defeated multiple times and was compelled to sign treaties that forced him to pay heavy financial indemnities (tribute) and cede northern territories to the Marathas Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Indian States and Society in the 18th Century, p.31. It was only after the untimely death of Madhavrao I in 1772 that Haidar Ali found the breathing room to recover his lost lands and assert Mysore's dominance once more.
1761 — Haidar Ali usurps power in Mysore; Marathas lose at Panipat.
1764-1772 — Peshwa Madhavrao I repeatedly defeats Haidar Ali, exacting tribute.
1772 — Death of Madhavrao I; Haidar Ali begins reclaiming lost territories.
Key Takeaway The Maratha-Mysore rivalry was a struggle for regional hegemony where the Marathas, particularly under Madhavrao I, successfully checked the expansion of Haidar Ali through superior military force and financial demands.
Sources:
History, class XI (Tamilnadu state board 2024 ed.), Early Resistance to British Rule, p.279; Rajiv Ahir, A Brief History of Modern India (2019 ed.), Expansion and Consolidation of British Power in India, p.95; Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Indian States and Society in the 18th Century, p.31
5. The Era of Nana Saheb and the Third Battle of Panipat (exam-level)
After the legendary Baji Rao I, his 18-year-old son
Balaji Baji Rao (popularly known as
Nana Saheb) took the mantle of Peshwa from 1740 to 1761. While his father was a whirlwind of military energy, Nana Saheb was primarily a
skilled administrator and financial expert
History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.231. A major constitutional shift occurred in
1749 upon the death of King Shahu; his will officially transferred the management of state affairs to the Peshwa, formalizing the office as the
de facto ruler of the Maratha Empire
Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Indian States and Society in the 18th Century, p.31.
Under Nana Saheb, the Maratha Empire reached its
territorial zenith. The Maratha
Confederacy — comprising the Gaekwads of Baroda, Bhonsles of Nagpur, Holkars of Indore, and Sindhias of Gwalior — expanded their spheres of influence across the subcontinent
Rajiv Ahir, A Brief History of Modern India (2019 ed.), Expansion and Consolidation of British Power in India, p.101. A notable success during this era was in 1751, when the Marathas compelled the
Nawab of Bengal, Alivardi Khan, to cede the province of
Orissa and pay a yearly tribute (Chauth). However, this rapid expansion had a hollow core: the Marathas were more focused on revenue extraction than on establishing firm administrative foundations in these new territories, which ultimately weakened their long-term grip
Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Indian States and Society in the 18th Century, p.31.
The era reached its tragic climax in
1761 with the
Third Battle of Panipat. Conflict over northern supremacy brought the Marathas face-to-face with the Afghan ruler
Ahmad Shah Abdali. The Maratha defeat was catastrophic; it resulted in the death of Nana Saheb’s son (Viswas Rao) and cousin (Sadashiv Rao Bhau), and the shock of the loss reportedly led to the Peshwa's own death shortly after. Historically, Panipat did not decide who would rule India, but rather who would
not — it shattered the dream of a Maratha-led Indian empire and left a power vacuum that the British East India Company was eventually able to exploit.
1740 — Nana Saheb succeeds Baji Rao I as Peshwa.
1749 — Death of King Shahu; Peshwa becomes the de facto head of state.
1751 — Nawab of Bengal cedes Orissa to the Marathas.
1761 — Third Battle of Panipat: Maratha defeat by Ahmad Shah Abdali.
Key Takeaway Under Nana Saheb, the Maratha power reached its peak territorial extent, but the lack of administrative consolidation and the defeat at Panipat in 1761 halted their bid for all-India supremacy.
Sources:
History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.231; Modern India, Bipin Chandra, History class XII (NCERT 1982 ed.), Indian States and Society in the 18th Century, p.31; Rajiv Ahir, A Brief History of Modern India (2019 ed.), Expansion and Consolidation of British Power in India, p.101
6. Peshwa Madhav Rao I and the Maratha Resurrection (exam-level)
The Third Battle of Panipat in 1761 was a catastrophic blow to Maratha's dream of an all-India empire. However, the period that followed, known as the
Maratha Resurrection, proved that the Maratha spirit was far from extinguished. At the center of this revival was
Peshwa Madhav Rao I, the young son of Balaji Baji Rao, who ascended the throne at the tender age of sixteen. Despite facing internal friction from his ambitious uncle,
Raghunath Rao (Raghoba), who served as his regent, Madhav Rao displayed extraordinary maturity and military genius. Within just eleven years, he managed to reclaim almost everything the Marathas had lost at Panipat.
History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.233Madhav Rao’s military record was impeccable. In the Deccan, he humbled the
Nizam of Hyderabad in a fierce battle in 1763. In the South, he proved to be the only Indian ruler capable of consistently defeating the rising power of
Hyder Ali of Mysore. Between 1764 and 1772, Madhav Rao led multiple successful expeditions, eventually forcing Hyder Ali into a
humiliating treaty that involved the payment of tribute and the surrender of territories.
History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.233 These victories ensured that the Maratha influence in the Carnatic and Mysore regions remained intact despite the setbacks of 1761.
Perhaps his most significant geopolitical achievement was the
restoration of Maratha hegemony in Northern India. Under his leadership, Maratha armies defeated the Rohillas (Pathans), subjugated the Rajput states, and brought the Jat chiefs to heel. In a stunning display of power in 1771, the Marathas escorted the fugitive Mughal Emperor,
Shah Alam II, back to Delhi from his British-protected exile in Allahabad. In return, the Emperor ceded the strategic districts of
Kora and Allahabad to them.
History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.233 This move effectively signaled to the British and other powers that the Marathas were once again the
kingmakers of India.
Tragically, this resurrection was cut short. Madhav Rao died of
consumption (tuberculosis) in 1772 at the age of 27. Historians often remark that the death of this brilliant Peshwa was a greater blow to the Maratha Empire than the defeat at Panipat itself. His death left a power vacuum that led to a bitter struggle between his younger brother,
Narayan Rao, and his uncle Raghunath Rao, eventually drawing the British into Maratha internal affairs.
Modern India, Bipin Chandra, Indian States and Society in the 18th Century, p.34
1761 — Madhav Rao I becomes Peshwa post-Panipat
1763 — Defeat of the Nizam of Hyderabad
1771 — Restoration of Emperor Shah Alam II to the throne of Delhi
1772 — Death of Madhav Rao I; death of the era of resurrection
Key Takeaway Under Madhav Rao I, the Marathas achieved a near-total recovery from the Panipat disaster by subjugating the Nizam, Mysore, and the North, while restoring the Mughal Emperor to Delhi.
Sources:
History, class XI (Tamilnadu state board 2024 ed.), The Marathas, p.233; Modern India, Bipin Chandra (NCERT 1982 ed.), Indian States and Society in the 18th Century, p.34
7. Solving the Original PYQ (exam-level)
This question is a perfect synthesis of the Maratha Expansion and the Administrative Supremacy of the Peshwas that you have just studied. To solve this, you must connect the dots between the Maratha's internal consolidation under Shahu and their external role as 'kingmakers' in the crumbling Mughal Empire. Statement I refers to the landmark 1719 agreement where Balaji Vishwanath secured the rights to Chauth and Sardeshmukhi; his collaboration with the Saiyid brothers marked the first time Maratha arms determined the occupant of the Mughal throne, as seen in A Brief History of Modern India (Spectrum).
Moving to the peak of Maratha power, Statement II focuses on Balaji Baji Rao (Nana Saheb). During his tenure, the Maratha cavalry (led by Raghoji Bhonsle) pressured the Nawab of Bengal, Alivardi Khan, into a treaty in 1751. This resulted in the cession of Orissa and an annual tribute, illustrating the Marathas' reach into Eastern India. Finally, Statement III highlights the resilience of Madhav Rao I. After the disaster at Panipat, he successfully re-established Maratha authority in the Deccan by defeating Hyder Ali in multiple campaigns between 1764 and 1772, forcing the Mysore ruler to pay a heavy war indemnity and annual tribute. This recovery is a crucial theme in History of Modern India by Bipan Chandra.
The reasoning leads us to conclude that all three statements are historically accurate. In UPSC, a common trap is the 'Incomplete Option'; for instance, Options (A) and (B) are technically true but fail to account for all correct facts. While the provided key marks (C) I, II, and III as correct (correcting the typographical error in the option list), always look for the choice that encompasses the entirety of the verified facts. Understanding the specific achievements of each Peshwa—from diplomacy in the North to territorial gains in the East and military recovery in the South—is the key to navigating such multi-statement questions.