The British defeated Talpur city rulers at the battle of Hyderabad on March 24, 1843. The provincial capital was then transferred to the Bombay Presidency by British General Sir Charles Napier. Being the last stronghold of Sindh, the conquered city was the final step in the conquest of the British of Sindh.
Following the British conquest, a number of rulers from the city of Talpur Mirs were deported and died in Calcutta. Their bodies were eventually returned to Hyderabad, and they were buried in Talpur Mirs Cemetery on the northern edge of Ganjo Hill.
Hyderabad's prosperity did not diminish at first after the transfer of the capital, Sindh, to the President of Bombay. Traders there formed links with the commercial community in Hyderabad and began exporting Hyderabadi goods to distant markets.
Following the resemblance of Sindhi to the Presidency of Bombay in 1847, the city emerged as the center of a craft style known as Sindwork that was sold in Bombay, and introduced to its European citizens because of its perceived authenticity of the style.
The work was then shipped from Bombay to Egypt for sale to local visitors as souvenirs. Hyderabadi traders also spread east along with Singapore and Japan as well. Unable to meet the demand for its products, Hyderabad traders began importing handicrafts from Kashmir, Varanasi, China, and Japan to reduce demand.
The Sindwork handicrafts thus placed Hyderabad at the center of a new trading network dominated by Hindus from the mercantile part of the Lohana caste mercantile town, although the artisans themselves were predominantly Muslim.
The city prison was built in 1851, and the Hyderabad Municipality was established in 1853. At Pacco Qillo the English retained the province's arms, removed from Karachi in 1861, and the former Amirs' Amish conquests.
In 1857, as the Indian invasion of South Asia increased, the British captured most of their army and ammunition in the city.
Although the city did not experience major wars, the British demolished a huge circular tower that once stood outside Pacco Qillo, viewing it as a threat to its rule if it fell into the hands of rebels.
Hyderabad's Rani Bagh "Queen's Garden" was founded as Das Gardens in 1861 and was rebaptized in honor of Queen Victoria. British-style schools were introduced in Hyderabad in the 1860s, while St Joseph Missionary School was founded in 1868.
Other European schools were opened, while the Hindu and Muslim elite Hyderabad established schools for their communities during the British colonial period.
A hospital, psychiatric facility, and residential complex were built in 1871. In 1872, 43,088 people lived in the city. The city in 1873 had a 12-mile 20 km stretch of paved streets lined with kerosene lamps at night. The newly developed urban area of Saddar and the Soldier Bazaar also expanded the city.
The British built a railway network throughout the western part of South Asia in the 1880s and purchased a private Scinde Railway to connect the province to Kabul trade routes.
The railway network will later be called the North-Western State Railway. The Kotri Bridge was completed in 1900 to cross the Indus, connecting Hyderabad and Karachi.
Hyderabad's economy has grown as a result of improved transportation. The city grew into a consumer market under the British Empire, and exports to the city began to decline, although growing transportation trade allowed the city's economy to continue to grow.
In 1901, 69,378 people lived in the city. Hinduism was the dominant religion with 43,499 followers, while 24,831 Muslims practiced the smallest religion. The city is ranked seventh in the Presidency of Bombay in terms of population.
In 1907, the Sindette Gazette of Sindh claimed that 5,000 Hyderabadi merchants would be found scattered throughout the world.
The city's Navalrai Clock Tower was built in 1914. Bengali poet Rabindranath Tagore noted in the early 20th century that Hyderabad was the "most fashionable" city in all of India.
The city of Hyderabad served as the capital of Sindh province between 1947 and 1955. the migration of a large number of Hindus to the city, although as a large part of Sindh, Hyderabad did not experience the widespread unrest in the Punjab and Bengal.
In all, fewer than 500 Hindus were killed in Sindh between 1947-48 as Cindy Muslims strongly opposed telephone calls against their Hindu neighbors.
Hindus did not flee Hyderabad in large numbers until riots broke out in Karachi on January 6, 1948, sparking fears among Sindhi Hindus despite the fact that riots were in place and targeting Sikh refugees from Punjab seeking refuge in Karachi.
The Hindu emigrants played a major role in the city's economy and formed the majority of the Hyderabad population. The empty space left by most of the city's Hindu pilgrims was quickly closed to the newly arrived refugees from India, known as the Muhajirs.
By 1951, 66% of the city was made up of Muhajirs. Although Hyderabad became a major Urdu-speaking city in the 1940s, the arrival of the Pashtuns and Punjabis from northern Pakistan again divided the city's ethnicity over the next few decades.
Hostility between the Urdu and Sindhi speakers began in 1967 and intensified under the control of the Pakistan People's Party in the 1970s, which were widely regarded by the Muhajir as the domination of the Sindhi.