Hostilities recommenced in India between the French and the English in AD.1758 on the outbreak of Seven Years War in Europe in A.D.1756. As a result, the French lost their power in India and consequently it also lost influence at Hyderabad. In A.D.1762 Nizam Ali Khan dislodged Salabat Jung and proclaimed himself as Nizam.
Hyderabad came into focus again when Nizam Ali Khan (Nizam II) in A.D.1763 shifted the capital of the Deccan from Aurangabad to Hyderabad. Such a move helped rapid economic growth and expansion of the city, resulting in its importance and prosperity.
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