Claim: Telangana contains the town Hyderabad.

Hyderabad -LRB- ˈ ; often -LSB- ˈhaɪdrəˌbaed -RSB- -RRB- is the capital of the southern Indian state of Telangana and de jure capital of Andhra Pradesh . Occupying 650 km2 along the banks of the Musi River , it has a population of about and a metropolitan population of about , making it the fourth most populous city and sixth most populous urban agglomeration in India . At an average altitude of 542 m , much of Hyderabad is situated on hilly terrain around artificial lakes , including Hussain Sagar -- predating the city 's founding -- north of the city centre .   Established in 1591 by Muhammad Quli Qutb Shah , Hyderabad remained under the rule of the Qutb Shahi dynasty for nearly a century before the Mughals captured the region . In 1724 , Mughal viceroy Asif Jah I declared his sovereignty and created his own dynasty , known as the Nizams of Hyderabad . The Nizam 's dominions became a princely state during the British Raj , and remained so for , with the city serving as its capital . The city continued as the capital of Hyderabad State after it was brought into the Indian Union in 1948 , and became the capital of Andhra Pradesh after the States Reorganisation Act , 1956 . Since 1956 , Rashtrapati Nilayam in the city has been the winter office of the President of India . In 2014 , the newly formed state of Telangana split from Andhra Pradesh and the city became joint capital of the two states , a transitional arrangement scheduled to end by 2025 .   Relics of Qutb Shahi and Nizam rule remain visible today ; the Charminar -- commissioned by Muhammad Quli Qutb Shah -- has come to symbolise Hyderabad . Golconda fort is another major landmark . The influence of Mughlai culture is also evident in the region 's distinctive cuisine , which includes Hyderabadi biryani and Hyderabadi haleem . The Qutb Shahis and Nizams established Hyderabad as a cultural hub , attracting men of letters from different parts of the world . Hyderabad emerged as the foremost centre of culture in India with the decline of the Mughal Empire in the mid-19th century , with artists migrating to the city from the rest of the Indian subcontinent . The Telugu film industry based in the city is the country 's second-largest producer of motion pictures .   Hyderabad was historically known as a pearl and diamond trading centre , and it continues to be known as the City of Pearls . Many of the city 's traditional bazaars remain open , including Laad Bazaar , Begum Bazaar and Sultan Bazaar . Industrialisation throughout the attracted major Indian manufacturing , research and financial institutions , including Bharat Heavy Electricals Limited , the National Geophysical Research Institute and the Centre for Cellular and Molecular Biology . Special economic zones dedicated to information technology have encouraged companies from India and around the world to set up operations in Hyderabad . The emergence of pharmaceutical and biotechnology industries in the 1990s led to the area 's naming as India 's `` Genome Valley '' . With an output of 74 billion , Hyderabad is the fifth-largest contributor to India 's overall gross domestic product .