Asaf Jah II, also known as Nizam Ali Khan, was the second ruler of the Asaf Jahi dynasty of Hyderabad. He ruled from 1762 to 1803 and played a key role in shaping the political and military landscape of the Deccan during a time of intense rivalry between Indian powers and European colonial forces.
While the Nizams built one of most wealthy regimes, the financial commitments to maintain a strong and alert military, were a significant part of their administration cost. Asaf Jah 2 maintained a complex relationship with both, the British and the French during the period of colonial expansion in India.
At the beginning of his reign (1762–1803), Asaf Jah II initially sought military assistance from the French, who were influential in southern India during the mid-18th century. French officers like Monsieur Bussy had earlier gained significant influence in the Deccan, this was what drew the attention of Asaf Jah 2. The Nizam used French-trained troops and European military techniques to strengthen his army.
The French help did not come as a favor or a gesture of goodwill, for the second Nizam of Hyderabad. In modern commercial jargon it would be right to say that, the French billed Asaf Jah 2 for their military support. Reports seem to suggest that, the Nizam parted with a valuable blue diamond from the Golconda mines, as partial or full payment for the French military support. Known as the Seraphim Blue Diamond, the precious stone was believed to have been worn by Asaf Jah 1, in an opulent turban ornament.
After the decline of French the Nizam began to lean more toward the British East India Company. He signed several subsidiary alliances with the British, especially after losing territory to the Marathas and facing threats from Mysore under Hyder Ali and Tipu Sultan. Asaf Jah 2 and subsequent Nizam’s were cautious about, losing their administrative grip on Hyderabad. A significant development was the signing of the Subsidiary Alliance Treaty of 1798 with the British. A permanent British force was assigned to protect Hyderabad and the Nizam.
By securing military help from the French and later from the British, the Nizams (particularly Asaf Jah II, the second Nizam of Hyderabad) — were able to stabilize their political and military position in the Deccan. This relative security allowed them to shift their focus from constant warfare to internal development and the welfare of their people.
