It has been estimated that whilst the Indian GDP diminished from 80% to less than 15% between the years of 1650 to 1871, the British living standards rose rapidly. The years of economic decline corresponds with the years of decline for the Mughal Empire that was terminated in 1858. Babur founded the Mughal Empire after the battle of Panipat in 1526 and his descendants governed India from 1526 to the early 18th century. However, he left an unresolved political condition when he died in 1530. Akbar was the one who could control Hindustan with his effective policies.
Mughals rule overstretched to cover nearly all of India, Pakistan, Afghanistan and Bangladesh from 1556 to 1570. Great rulers like Akbar, Jahangir, Shah Jahan and Aurangzeb were produced during the period. However, according to Raghunath Rai, Aurangzeb's policies of religious tolerance had deteriorated the empire. On the other hand, some historians predict that the decline commenced from Shah Jahan's time when the rulers spent extraordinarily for self-enhancement. After Akbar, the descendants mostly neglected the welfare of people and the region. .
Aurangzeb's policies provoked many dissent groups to utilise revolutionary tactics and dethrone him. Although Shah Jahan and Aurangzeb conquered large territories, the Mughal rule had declined and many regional kingdoms rose, during Aurangzeb's time. One of them was the British East India Company which later emerged as a political power. The factionalism between the officials and locals exacerbated the situation. Emperors passed the management of India politics to the nobles and subsequently became puppets of them. Their system was deconstructed due to relentless rebels and Bahadur Shah Zafar, the last emperor, was imprisoned under the British in Burma. After various reasons contributing to the decline of Mughal Empire, it was finally terminated in 1858 when the British conquered and proclaimed Queen Elizabeth to be the ruler of India.