In the reigning tenure of Mir Osman Ali Khan introduced certain educational reforms which were considered the most memorable achievements under his rule and had the most lasting and impressive contribution. He was the founder of the Osmania University in Hyderabad, which marked a new era in the annals of British educational policy in India.

As per Sir Akbar Haidari, `the original protagonist of the scheme of Osmania University,` the state has always patronised learning and crafts. While agreeing with the draft scheme for the Hyderabad University, the seventh Nizam in his Farman put forth the objectives for the proposed university. In the Farman, it was declared that, in this university the modern, the ancient, the Oriental and Western arts and crafts should be combined to remove the defects of the modern system of education so that one should draw full benefit from the ancient and modern systems of education in the physical, intellectual and spiritual fields. And in the university, with the spread of education, there should also be scope for the improvement and reform of the morals of the students. Further, in this university there should be provision for real research facilities in all the different sciences. Lastly, the basic principle of this University would be that Urdu should be the medium of instruction for higher education; but the study of English as a language should be compulsory for every student.

Before the establishment of the Osmania University, Hyderabad had lagged much behind the other British Indian Provinces in the field of education. But at the same time it must be remembered that under the last Nizam, Mir Mahboob Ali Khan, the Nizam College affiliated to University of Madras had already started to function, although the number of graduates it had produced since its inception was very small. Moreover, leaving aside the missionaries` activities in the field of education in the state, there also existed in the state two other systems of education in addition to Nizam College. In one of these, Darul-Ulum, founded by the Nizam`s government, the knowledge of ancient languages and ancient sciences was imparted to the students. There were also religious institutions, managed by the religious heads, in which purely religious education was imparted to the students. But the utility of all these systems of education was very much restricted. Therefore, need was strongly felt for a new system of education, the benefits of which should reach the masses, and which should be in tune with the material character and traditions of the country and at the same time should provide research facilities in all the sciences.

Moreover, with regard to the objectives set out for the formation of Osmania University, it is equally important to take due cognizance of the work carried out by the East India Company`s Government and the enlightened School of British politicians. Throughout the Nine¬teenth century, they showed due consciousness for the development of the indigenous languages in general and of Urdu in particular. Also, it is to be observed that constructive and genuine efforts were made by British politicians to make education reach the masses. Apart from these, there were two other factors which had an immediate bearing upon the special character and origin of Osmania University in Hyderabad. One of these was the outbreak of the Swadeshi Movement in the country, as a result of Japan`s victory over Russia, which enhanced the prestige of Asiatic culture over that of the West, and filled the Indian youth with a natural desire to reform the evils of their educational system on the model of Japan.

The Constitution of Osmania University was drawn up by a three member expert committee comprising the Sadrus Sudoor, Habibur Rahman Sherwani, the Secretary of Education, Sir Akbar Haidari, and the Director, Public Instruction, Sir Ross Masood, the grandson of Sir Syed Ahmad Khan, the founder of the `Anglo Oriental Muhummadam College` at Aligarh.

There was difference in opinions about the educational schemes and methods that were to be introduced in Osmania University. The final step in tidying the path for the smooth running of the Urdu medium of Instruction policy of the Osmania University was undertaken early in 1942. The Government of Hyderabad introduced a fresh scheme for re-organising Secondary education in prescribing Urdu as the medium of instruction in all Middle and High Schools in the state and of course in the Osmania University. Thus, the dogged determination and stupendous courage of Osman Ali Khan and under his influence of the Hyderabad Government, with the genuine and sincere cooperation of the British Government, British statesmen and British educationists, carried out successfully the unique experiment of converting the medium of instruction from English into Urdu, against great odds and hurdles in its way.

This unifying role of Osmania University served as the cultural bond between the different communities of India. Osman Ali Khan, as the Ruler of an Islamic state, had a great ambition to revive by the establishment of Osmania University and the past splendours of the Muslim rulers in the field of Learning and Culture. The Osmania University had not only done a great thing for the Hyderabad state, but by establishing the university, Mir Osman ali Khan had also done a great service to the whole of the country. Through Osmania University, knowledge and culture spread through the state and before the establishment of Osmania University, Hyderabad was very backward educationally compared with the British Indian Provinces. From the very beginning of Osmania University, Sanskrit and Marathi were included as second languages in its curricula. Taking these things into consideration, members of other communities were to be included in the Academic faculty and in the Senate of Osmania University.

Finally, Osman Ali Khan also believed that Osmania University besides making higher education universal should also become recognised as an important centre for carrying out research in the academic fields, both in the humanities and in the sciences. Accordingly by 1936, Osmania University had established post graduate courses and research facilities in all the Sciences: physics, chemistry, biology, medicine, engineering, metallurgy, as well as establishing the faculty of Law, Education and Teachers Training Courses. Also, with a view to reaching a high standard of proficiency in all these courses, the seventh Nizam was very vigilant that the Professors and Lecturers in all these faculties should be men of high calibre and good character.

Thus, Osmania University by 1948, had reached its full stature, at both graduate and post graduate levels. Its degrees were accepted not only by the other Indian Universities, but by the British Universities as well. And its graduates had started to play their full role, educationally, politically, socially and culturally in the life of their states, as well as in the life of their country as a whole.