(1) With the decline of Mughal power, the towns associated with their administration started declining.
(2) The regional capitals Lucknow, Hyderabad, srirangapattanam, and Poona started gaining importance.
(3) The traders, administrators, artisans and other people, in search of work and patronage, began to reside in new capitals.
(4) With acquiring political control, the east India Company rapidly developed Madras, Calcutta and Bombay