Extravagance was one of the causes of the Mughal''s decline; the Tomb of Safdar Jung in Delhi, a Mughal nobleman
and Governor, built by his son Nawab Shuja-ud-Daula in 1754,
Another factor contributing to the decline was the financial position of the Mughals, which had become deplorable. The war of successions, rebellions and luxurious style of living had depleted the once enormous treasury and had led to financial bankruptcy. During the time of Aurangzeb, the Mughal Empire had expanded to reach its maximum size. This vast area had become impossible for one ruler to control and govern from one center. It was during the later Mughals that Deccan, Bengal, Bihar and Orrisa declared their independence. The raids by Nadir Shah, and repeated invasions of Ahmad Shah Abdali, resulted in further
weakening of the empire. The already weakened empire faced further encroachment by the British and the French, which proved to be the last nail in the already drowning empire''s coffin. The British and French, who had initially come as traders, took full advantage of the weakening empire and soon became masters of the whole of India.
One of the most potent causes of the fall of the Mughal Empire was the deterioration and demoralization of the army. The military had not only become inefficient but also lacked in training, discipline and cohesion. The army was out-dated in regard to equipment. It consisted of contingents maintained by various nobles, which was the main source of Army''s
weakness. As the weakening of the nobles occurred, so did the army. This was because of the soldiers, instead of identifying and uniting as Mughal Indians, identified themselves with different ethnic groups like Persian, Afghans and Central Asians. The Mughals had no navy and only maintained small ships that were no match for the well-equipped ships of the foreign traders. It was this weakness that the French and the British used to their advantage, and were eventually able to establish their control over India.