Indore is a tier 2 city, the largest city of the Indian state of Madhya Pradesh. It serves as the headquarters of both Indore District and Indore Division. A central power city, Indore exerts a significant impact upon commerce, finance, media, art, fashion, research, technology, education, and entertainment and has been described as the commercial capital of the state.
Located on the southern edge of Malwa Plateau, the city is located 190 km west of the state capital of Bhopal. With a Census-estimated 2011 population of 2,167,447 distributed over a land area of just (526 km2), Indore is the densely populated major city in the central province. The Indore Metropolitan Area's population is the state's largest, with 2.2 million people living there. It is the 14th largest city in India and 147th largest city in the world.
Indore traces its roots to its 16th century founding as a trading hub between the Deccan and Delhi. The city and its surroundings came under Maratha Empire on 18 May 1724 after Maratha Peshwa assumed the full control of Malwa. During the days of the British Raj, Indore State was a 19 Gun Salute (21 locally) princely state (a rare high rank) ruled by the Maratha Holkar dynasty, until they acceded to the Union of India. Indore served as the capital of the Madhya Bharat from 1950 until 1956.
Indore's financial district, anchored by central Indore, functions as the financial capital of the Madhya Pradesh and is home to the Madhya Pradesh Stock Exchange, India's third oldest stock exchange. Indore's real estate market is among the most expensive in the Central India.
Indore owes its early growth to trade and commerce, which is still a dominant feature of the city. It is the commercial capital of the central Indian state of Madhya Pradesh. The present city is about 500 years old. Till the end of 15th century, its original nucleus was a river side village which occupied the bank of river Saraswati. This area is now known as Juni Indore.
The area of the modern Indore city was a part of the Kampel pargana (administrative unit) during the Mughal Empire. Kampel was administered by the Ujjain sarkar (government) of Malwa Subah (province). The area was controlled by the local zamindars (feudal landlords), who accepted the suzerainty of the Mughal empire. The zamindars received the title of Chaudhari, which established their claim to the land.
The modern settlement was developed by Rao Nandlal Chaudhary, the chief local zamindar, who had an army of 2000 soldiers. Under the Mughal rule, his family enjoyed great influence and was accorded confirmatory sanads by the Emperors Aurangzeb and Farrukhsiyar, confirming their jagir (land ownership) rights. When Nandlal visited the Mughal court at Delhi, he received a special place in the emperor's court along with two jewel studded swords (now on display in the Royal British Museum under the family's name) and confirmatory sanads. Jai Singh II, a personal friend of his, gave him a special "Gold Langar" which guaranteed a special place to him in all the courts of India.
The Maratha Raj (Holkar Era)
By 1720, the headquarters of the local pargana were transferred from Kampel to Indore, due to the increasing commercial activity in the city. On 18 May 1724, the Nizam accepted the rights of the Maratha Peshwa Baji Rao I to collect chauth (taxes) from the area. In 1733, the Peshwa assumed the full control of Malwa, and appointed his commander Malhar Rao Holkar as the Subhedar (Governor) of the province. Nandlal Chaudhary accepted the suzerainty of the Marathas. During the Maratha rule, the Chaudharis came to be known as "Mandloi"s (derived from Mandals meaning districts). The Holkars conferred the title of Rao Raja upon Nandlal's family. The family retained its possessions of royalty, in addition to the right of performing the first puja of Dushera (Shami Pujan) before the Holkar rulers. The respectability and influence of Nandlal's family in the region was instrumental in the ascent of the Peshwas and Holkars to rulership of this region.
On 29 July 1732, Bajirao Peshwa-I granted Holkar State by merging 28 and half parganas to Malhar Rao Holkar, the founder ruler of Holkar dynasty. His daughter-in-law Ahilyabai Holkar moved the state's capital to Maheshwar in 1767, but Indore remained an important commercial and military centre.
British Era (Indore/Holkar State)
In 1818, the Holkars were defeated by the British during the Third Anglo-Maratha War, in the Battle of Mahidpur by virtue of which the capital was again moved from Maheshwar to Indore. A residency with British resident was established at Indore, but Holkars continued to rule Indore State as a princely state mainly due to efforts of their Dewan Tatya Jog. During that time, Indore was established the headquarters of British Central Agency. In 1906 electric supply was started in the city, fire brigade was established in 1909 and in 1918, first master-plan of city was made by noted architect and town planner, Patrick Geddes.
During the period of Maharaja Tukoji Rao Holkar II (1852–86) efforts were made for the planned development and industrial development of Indore. With the introduction of Railways in 1875, the business in Indore flourished till the reign of Maharaja Shivaji Rao Holkar, Maharaja Tukoji Rao Holkar III and Maharaja Yeshwant Rao Holkar.
After India's independence in 1947, Holkar State, along with a number of neighbouring princely states acceded to Indian Union. In 1948 with the formation of Madhya Bharat, Indore became the summer capital of state. On 1 November 1956, when Madhya Bharat was merged into Madhya Pradesh, the state capital was shifted to Bhopal. Indore a nearly 2.1 million city today has transformed from a traditional commercial urban center into a modern dynamic commercial capital of the state.