With the decline in the Mughal authority, many new states emerged in the Indian subcontinent like Awadh, Bengal and Hyderabad which were founded by the respective governors under the Mughal Empire. Hyderabad was established by Asaf Jah, Awadh by Sa’adat Khan and Bengal by Murshid Quli Khan.
There are three main reasons for these states gaining power and becoming prominent were; the modified administrative system, modified tax collection procedure and better relations with the bankers and money lenders of the state.
There were many Rajput kings who started serving as watan jagirs. The Rajput kings who had been running an independent state within the Mughal Empire tried to extend their territories, but were thwarted by the kings of the neighboring regions. Some Rajput kings were made subhedars of wealthy provinces of Gujarat and Malwa.
In 1713, emperor Jahandar Shah renewed these positions while some Rajput kings also seized other royal territories surrounding their watans. Sawai Raja Jai Singh founded Jaipur and was later made the subhedar of Agra. However, in 1740s, the Marathas prevented the Rajputs kings from expanding their territories. The Sikhs, Marathas and Jats, after a long struggle, did seize independence from the Mughals.
Guru Gobind Singh, the founder of Khalsa, fought several battles against the Rajput and Mughal rulers. They declared their independence under the leadership of Banda Bahadur in 1765. Maharaja Ranjit Singh reunited the various territories and made Lahore its capital in 1799.
The Jats had established their region in the areas surrounding Delhi and Agra under the leadership of Churaman. It also raised an army to protect itself from the Mughal Empire. In 1739, when Nadir Shah of Iran attacked Delhi, its ruler Suraj Mal gave refuge to the Mughal nobles. Under Suraj Mal, the kingdom of Bharatpur emerged as a strong state.
The Maratha kingdom was another important state in the Indian subcontinent under the army of Shivaji. The Peshwa later held the administrative power of the Maratha Kingdom and made Poona its capital. Soon, they expanded their territory and began ruling over the entire Deccan peninsula. It was him who implemented policies like the chauth and sardeshmukhi in this region.
During the third battle of Panipat in 1761, several Maratha rulers did not support the Marathas fighting the battle.