The Peshwa Era - Clarity Desk Hub

After the death of Aurangzeb in 1707, the Mughal Empire began to decline, and the Marathas — once guerilla warriors under Shivaji — began transforming into an expansive empire. But this transformation was not led by a king. It was steered by a Prime Minister, the Peshwa.

The Peshwa Era, especially under Balaji Vishwanath and Baji Rao I, was a time when the Maratha state evolved from a regional power in Maharashtra into a pan-Indian force.

Context: Why Was the Peshwa Appointed?

After Aurangzeb’s death, Shahu Maharaj (Shivaji’s grandson), imprisoned since 1689, was released. He returned to Maharashtra in 1707 but found the throne contested by his aunt, Tara Bai, who ruled from Kolhapur in the name of her son, Shivaji II.

Amid this power struggle, Balaji Vishwanath, a shrewd Brahmin administrator, rallied powerful Maratha sardars to Shahu’s side and secured his claim to the throne. As a reward, Shahu appointed him as Peshwa (1713).

📌 Initially an administrative post, the Peshwa would soon become the de facto ruler of the Maratha Empire.

👤 Balaji Vishwanath (1713–1720): Architect of Maratha Revival

Often called the second founder of the Maratha state, Balaji Vishwanath’s genius lay not in the battlefield, but in diplomacy and statecraft.

📜 Key Achievements:

Alliance with Mughal factions: He supported the Saiyid Brothers (kingmakers of Delhi) in removing Farrukh Siyar.
In return, the Saiyid brothers:
- Recognised Shahu as the rightful Maratha ruler.
- Granted the right to collect Chauth and Sardeshmukhi over six Mughal provinces in the Deccan.
- Acknowledged Swarajya (Shivaji’s original territory) as belonging to the Marathas.

💰 Revenue Innovations:

Balaji assigned separate regions to various Maratha sardars for Chauth and Sardeshmukhi collection. While this increased loyalty and expansion, it had side effects:

Sardars became semi-independent, often withholding revenue.
Over time, they became jealous of central authority and even collaborated with enemies when threatened.

🔎 This decentralised revenue system planted seeds of future fragmentation.

⚔️ Baji Rao I (1720–1740): The Maratha Sword That Reached Delhi

When Balaji Vishwanath died, his 20-year-old son Baji Rao I took charge. Despite his youth, Baji Rao soon proved to be the most dynamic and militarily gifted among all Peshwas.

🌟 Legacy:

Baji Rao didn’t just defend Maratha power — he expanded it beyond Maharashtra, creating a Maratha Empire.

🗣️ “Let us strike at the trunk of the withering tree — the Mughal Empire — and the branches will fall themselves.” — Baji Rao I

🛡️ Campaigns of Baji Rao I

1. Battle of Palkhed (1728) – vs. the Nizam of Hyderabad

The Nizam, opposing Maratha claims, tried to deny Chauth and Sardeshmukhi.
Baji Rao used swift cavalry movements to outflank and surround him.
Victory led to the recognition of Maratha rights over the Deccan.

📌 Noted for textbook use of guerrilla warfare — praised even by British generals.

2. Battle of Bhopal (1737) – vs. Mughal-Nizam Alliance

Baji Rao marched into North India and threatened Delhi.
Defeated combined Mughal-Nizam forces at Bhopal.
Secured Malwa for the Marathas — a gateway to Central India.

3. Campaigns against the Portuguese

Led by Chimaji Appa, Baji Rao’s brother.
Captured Bassein and Salsette (around present-day Mumbai) from the Portuguese in 1739.

📍 Rise of Powerful Maratha Families

Baji Rao gave military and territorial responsibility to his trusted commanders:

Gaekwad – Gujarat
Holkar – Indore
Scindia (Sindhia) – Gwalior
Bhonsle – Nagpur

🎯 These families later became semi-autonomous princely states, weakening central authority over time.

🧱 Structural Weaknesses under Baji Rao

Despite stunning military successes, Baji Rao failed to:

Create administrative structures in newly conquered territories.
Centralise revenue or power.

New lands were often:

Left to sardars, who ruled them like personal jagirs.
Poorly integrated into a unified empire.

📌 Like Alexander, he won battles but didn’t build a durable system of governance.

📌 Quick Comparison Table

Aspect	Balaji Vishwanath	Baji Rao I
Tenure	1713–1720	1720–1740
Strength	Diplomacy, finance	Military strategy
Key Allies	Saiyid Brothers	Maratha Sardars
Major Battles	None	Palkhed, Bhopal
Territories Gained	Legal recognition of Deccan rights	Malwa, Gujarat, Bundelkhand
Administrative Success	Revenue reforms	Weak governance of new areas
Legacy	Founder of Peshwa dominance	Builder of the Maratha Empire

🟫 Balaji Baji Rao (1740–1761): Rise, Campaigns, and Challenges of the Maratha Power

After the remarkable military success of Baji Rao I, his son Balaji Baji Rao, more popularly known as Nana Saheb, became the Peshwa in 1740 CE. But unlike his father, who was a born warrior and strategist, Nana Saheb was more inclined towards administration, diplomacy, and centralization of Maratha power. His era marked both the zenith of the Maratha Empire and the beginning of its decline.

🟩 Administrative Control and Political Consolidation

In 1749, Chhatrapati Shahu—the Maratha king—passed away. But before his death, Shahu made a significant political move: he handed over the entire control of state affairs to the Peshwa. This event transformed the Maratha state into a de facto Peshwa-dominated polity, where the Chhatrapati became merely a symbolic figure.

➡️ Nana Saheb, now the supreme head, shifted the capital to Poona (Pune)—marking it as the new power center of the empire.

This shift meant two things:

The Peshwa’s authority was now official and centralized.
The Maratha Confederacy, with various powerful families (like Scindias, Holkars, Gaekwads, and Bhonsles), started emerging as semi-autonomous partners, held together by loyalty to the Peshwa.

🟩 Military Campaigns and Expansion of the Empire

Balaji Baji Rao presided over an era of military ambition and territorial expansion. Under his leadership, the Marathas stretched their influence from the southern tip of India to the northwest frontier.

Eastern Front: Bengal and Orissa

Bengal, under Alivardi Khan, was repeatedly raided.
In 1751, he ceded Orissa to the Marathas in order to avoid further devastation.

Southern Front: Mysore and Hyderabad

Marathas exacted tribute from Mysore and smaller southern states.
In 1760, they defeated the Nizam of Hyderabad at the Battle of Udgir.
- The victory forced the Nizam to cede territories yielding Rs. 62 lakhs in annual revenue—a major economic gain.

Northern Front: Delhi and the Mughal Throne

The decline of Mughal authority, especially after Nadir Shah’s invasion in 1739, created a power vacuum in North India.
The Marathas filled this vacuum by:
- Installing Imad-ul-Mulk as the Mughal wazir in 1752. He became a puppet under Maratha influence.
- Effectively controlling the Mughal Empire from behind the scenes.
- The Mughals were reduced to symbolic rulers—sultanate without sovereignty.

🟥 Maratha-Afghan Conflict: Prelude to Panipat

While the Marathas were growing in power, another power was rising in the northwest—Ahmad Shah Abdali, the founder of the Durrani Empire.

Why was India invaded repeatedly by Abdali?

Like many Central Asian rulers before him, Abdali was drawn by India’s wealth and political instability.
From 1748 to 1767, he invaded multiple times, plundering cities and expanding his hold over Punjab.

Mughal–Maratha Treaty of 1752:

The Mughal Emperor, helpless in the face of Abdali’s invasions, signed a treaty with the Marathas:

Marathas would defend the Mughal Empire against threats like the Afghans, Jats, Rajputs, and Rohillas.
In return, the Peshwa was to receive:
- ₹50 lakhs
- Chauth (tax) rights over Punjab, Sindh, Multan, Rajputana, and Rohilkhand
- Governorship of Agra and Ajmer

This treaty marked the peak of Maratha prestige: they were protectors of the Mughal Empire—an ironic reversal of history.

🟥 Campaigns Against Abdali: The Road to Disaster

Raghunath Rao’s Northern Expedition

In 1758, Raghunath Rao, brother of Nana Saheb, led a successful campaign into North India.
- He expelled Najib-ud-Daulah (a Rohilla chief) from Delhi.
- He captured Punjab, pushing back Abdali’s control.
- This was a high point of Maratha power in the North—they now controlled Delhi and Punjab.

The Afghan Reaction

Najib-ud-Daulah, humiliated and displaced, invited Ahmad Shah Abdali to invade India again.
- His aim: to counterbalance Maratha dominance.
- Abdali gladly accepted—he saw this as both revenge and opportunity.

This sets the stage for the Third Battle of Panipat (1761)—one of the most decisive and tragic episodes in Indian history, which we will explore next.

🟥 Third Battle of Panipat (1761): A Turning Point in Indian History

🟩 Backdrop: Clash of Ambitions and Anxieties

By the mid-18th century, two forces stood face-to-face, both determined to dominate India:

On one side: Marathas, emerging as the de facto rulers of much of India, expanding rapidly from Pune to Delhi, Bengal to Mysore.
On the other side: Ahmad Shah Abdali (Durrani), the Afghan ruler from Kandahar, deeply anxious about Maratha control over Punjab and Delhi—regions he considered within his sphere of influence.

💡 Contextual Thought:
The Marathas were not just a rising power—they had become the successors to the Mughals in spirit and administration. But their swift rise had created a long list of enemies… and that proved fatal.

🟫 The Trigger: Abdali’s Invasion (1759)

Abdali, enraged by Maratha expansion into Punjab, was invited by Najib-ud-Daulah (Rohilla chief) and Shuja-ud-Daulah (Nawab of Awadh), both of whom felt threatened by Maratha dominance.
In 1759, Abdali invaded India again—with a vast and experienced army—determined to settle the issue once and for all.

🟥 Maratha Response: March to the North

The Peshwa Balaji Baji Rao sent a massive army under:
- Sadashiv Rao Bhau (his cousin and trusted general)
- Vishwas Rao, the Peshwa’s own son, as nominal commander
The army was strong in numbers, artillery, and cavalry—but strategically isolated.

🧩 Why no allies?

Jats, Rajputs, and Rohillas: alienated due to past Maratha aggression
Mughal nobles: defeated or disrespected by the Marathas
Northern rulers: saw the Marathas as outsiders from the South
Imad-ul-Mulk, the only northern supporter, was politically insignificant

💡 Ethical Irony:

The Marathas came with a broad Indian vision— “India is for Indians”.
But ironically, they had alienated most native powers and stood alone in defending Hindustan from a foreign invader.

⚔️ The Battle: 14 January 1761, Panipat

A massive, decisive, and brutally fought battle on the flat fields of Panipat.
The Maratha army was surrounded and outmaneuvered.
Casualties: Over 28,000 soldiers killed.
Both Sadashiv Rao Bhau and Vishwas Rao died.
Maratha forces were crushed.

🟥 Consequences of the Defeat

🔻 Military Catastrophe

The cream of the Maratha army—experienced leaders and soldiers—was lost in a single day.
Their military strength was crippled.

🔻 Political Prestige Damaged

The moral authority and political standing of the Peshwa suffered a fatal blow.
The vision of Maratha suzerainty over all of India was effectively shattered.

🔻 Death of the Peshwa

Balaji Baji Rao, already marching north, was devastated by the defeat.
He died in June 1761, six months later—heartbroken and disillusioned.

🔻 Rise of the British

The vacuum created by the decline of both Mughals and Marathas gave the British East India Company (EIC) a perfect opportunity to expand.
The real winners of Panipat were not Afghans, but the British.

💡 It wasn’t about who ruled after Panipat, but who couldn’t rule anymore.

🟨 Abdali’s Hollow Victory

Though victorious, Abdali did not benefit:
- He couldn’t administer Delhi or Punjab effectively.
- He faced fierce Maratha resistance even after the battle.
- He returned to Afghanistan and never came back to India.
Moral of the episode: Even a victory in battle cannot ensure imperial control without deep local legitimacy.

🟦 Wider Reflections: Was Panipat a Civilizational Struggle?

Sadashiv Rao Bhau told the northern rulers:

“We are Indians like you. Abdali is a foreign invader. If he wins, it’s not just a defeat for the Marathas—but for India.”

But sectarian rivalries, ego, and short-term interests blinded the northern powers.

🟩 Panipat as a Symbol in Indian History

Panipat has seen three major battles—each changing the destiny of empires:

Battle	Year	Outcome	Historical Impact
First Panipat	1526	Babur defeated Ibrahim Lodhi	Foundation of Mughal Empire
Second Panipat	1556	Akbar defeated Hemu	Re-establishment of Mughal dominance
Third Panipat	1761	Abdali defeated Marathas	End of Maratha expansion, rise of British influence

Why Panipat?

Strategic location: on the invasion route from the northwest
Flat terrain: suited for cavalry and large armies
Proximity to Delhi: control over Delhi meant symbolic control of India

🔶 Conclusion: A Missed Empire

Had the Marathas won Panipat, Indian history could have taken a different course.
But due to strategic miscalculations, lack of allies, and overconfidence, they lost a battle that cost them an empire.

Yet, the Maratha spirit was not extinguished—they revived their power within a decade, culminating in the Second Maratha Confederacy, but never again as an all-India empire.

🟨 Madhav Rao I (1761–1772): The Revivalist Peshwa

When we speak of the Marathas after the catastrophic loss at the Third Battle of Panipat (1761), the name Madhav Rao I shines like a beacon of hope in an otherwise gloomy phase.

📌 Ascension at 17, Burden of Restoration

Madhav Rao was just 17 years old when he became Peshwa, following the death of his father, Balaji Baji Rao.
The Maratha morale and political structure were severely shaken after Panipat, but within just 11 years, Madhav Rao remarkably revived Maratha prestige.

⚔️ Military & Administrative Achievements

Defeated the Nizam and checked Haidar Ali of Mysore in campaigns of 1764–65 and 1769–72.
He reclaimed North India, restoring Maratha influence in Delhi by reinstating Emperor Shah Alam under Maratha protection.

🧠 Interpretation: This period marks the second political rise of the Marathas. Unlike expansionism under Bajirao I, Madhav Rao focused on consolidation and strategic diplomacy.

🟥 Power Struggles Post Madhav Rao’s Death (1772)

🔪 Intrigue Begins

Madhav Rao died young (age 28), likely from tuberculosis (consumption).
He was succeeded by Narayan Rao, his younger brother. But soon, Narayan Rao was murdered in 1773 — a result of palace conspiracy possibly involving Raghunath Rao.

👶 Birth of a Contender

Soon after, Narayan Rao’s widow gave birth to a posthumous son: Sawai Madhav Rao (Madhav Rao II).
A regency was established under Nana Phadnavis, who became the real administrator.

🟦 Nana Phadnavis: The Pillar of Stability

A brilliant administrator and diplomat, Nana Phadnavis:

Balanced Maratha politics during a turbulent time.
Collaborated with Mahadji Sindhia, a powerful sardar in the North.

💡 Nana was like a Chanakya figure, ensuring that no one Maratha chieftain could dominate while also managing relations with external powers, including the British.

⚔️ First Anglo-Maratha War (1775–1782)

Raghunath Rao, angry at being sidelined, sought British support to become Peshwa. This led to:

First Anglo-Maratha War, which ended in Treaty of Salbai (1782).
Result: Maratha victory. British accepted Madhav Rao II as Peshwa. Raghunath Rao was pensioned off.

🟩 Battle of Kharda (1795): Last Maratha Unity

A significant victory under Sawai Madhav Rao’s nominal rule.
Combined Maratha forces — Peshwa, Sindhia, Holkar, Bhonsle, and Gaekwad — defeated the Nizam of Hyderabad.
The Nizam was forced to cede territories and later, in 1798, accepted the British Subsidiary Alliance — a turning point.

⚠️ This was the last time all Maratha chiefs acted together, after which disunity crept in rapidly.

🟫 Rise of Semi-Independent Maratha Houses

Due to weakening central control under the Peshwa, major Maratha sardars carved out autonomous regions:

Maratha House	Region
Gaekwad	Baroda
Bhonsle	Nagpur
Holkar	Indore
Sindhia	Gwalior

They adopted Mughal-style administration, had their own armies, and gradually reduced allegiance to the Peshwa to mere symbolism.

🟨 Mahadji Sindhia: Maratha Dominance in Delhi

One of the most influential Maratha sardars.
He escorted Shah Alam II back to Delhi and took charge of imperial affairs.
With help from French officers, modernised his army and took over Delhi and Agra.
Became Naib-i-Munaib (Deputy to the Emperor), ruling in the name of the Peshwa.

🔁 While Nana managed the South, Mahadji revived Maratha authority in the North.

⚫ Decline Begins (1794–1800)

The death of Mahadji Sindhia (1794) and Nana Phadnavis (1800) destabilised Maratha unity.

Leadership vacuum emerged.
Sardars became self-interested.
The British, sensing an opportunity, began “divide and conquer” diplomacy.

🔴 Baji Rao II (1795–1818): The Final Peshwa

Son of Raghunath Rao, Baji Rao II was weak, indecisive, and given to luxuries.
Lacked the leadership needed to control feuding Maratha sardars.

This disunity allowed the British East India Company to:

Fight and win the Second (1803–05) and Third Anglo-Maratha Wars (1817–19).
Eventually, the Peshwa’s office was abolished, and Baji Rao II was exiled.

⚰️ End of Maratha Rule: Why Did It Happen?

🔎 Reasons Behind the Fall:

Internal Disunity:
- Sardars fought among themselves.
- Central authority of Peshwa eroded.
Short-sighted Policies:
- Focused more on revenue extraction than nation-building.
- Neglected trade, technology, and administration.
Death of Visionary Leaders:
- Loss of Nana Phadnavis and Mahadji Sindhia led to policy drift.
British Diplomacy and Military Superiority:
- The British used subsidiary alliances, political intrigue, and modern armies.
Failure to Build a Unified Empire:
- Couldn’t provide stable governance outside Maharashtra.
- Alienated northern powers through conquest rather than alliance.

✍️ Conclusion

The Maratha Empire, especially under Madhav Rao I and Mahadji Sindhia, came closest to filling the power vacuum left by the declining Mughals. But internal divisions, lack of political vision, and the rise of the British ensured that the dream of a Maratha pan-India empire remained unfulfilled.