After the death of Aurangzeb in 1707, the Moghul Empire of India went into decline. Oudh and Bengal provinces became virtually independent states. A number of Hindu regions rebelled. The Rajputs established a state in northwest India. The Marathas, under the Peshwas, formed an empire in central India. In the south, Haidar Ali established a kingdom based on the city of Mysore. An independent Muslim state, the Nizam of Hyderabad, dominated south central India. In the Punjab, the Sikhs created their own state.

As part of the Seven Years War, France and Britain fought in India. In 1757, the British fought and won the battle of Plassey against a French-allied Indian army. Although outnumbered 20-1, the British won through the use of treachery. Bengal and Oudh fell under British control, and the Moghul emperor, supporting France, was forced to surrender. He was left ruling just a small territory around Delhi itself. Between 1773 and 1785, the three most dangerous enemies of the British, the Marathas, Hyderabad and Haidar Ali were all defeated. Tipu Sultan, the son of Haidar Ali, initially made peace with the British, but was later forced to fight them. Despite some victories, he lost a lot of territory. In 1799, in a battle at rirangapatnam, Tipu died fighting the British, and his forces were defeated.

Ranjit Singh, the Lion of Punjab, was the son of a Sikh chieftain. He went on to become Maharaja of the Sikh Kingdom of Punjab. His rise to power began in 1799 when he seized Lahore and became its governor. In 1801, he named himself the Maharaja of Punjab. He unified the small principalities of the region under his rule and in 1809 signed treaty of Amritsar with the British. But soon after his death, his kingdom broke up due to infighting between rival chiefs.

The Gurkha kingdom of Nepal fights the British between 1814 and 1816. Although the Gurkhas were defeated, the British were so impressed by the Gurkha warriors, they allowed Nepal to keep some independence in exchange for the right to recruit Gurkhas into the British army. To this day, the British army still hires Gurkha soldiers.