In 1534, the Portuguese appropriated the islands from Bahadur Shah of Gujarat. They were ceded to Charles II of England in 1661, as dowry for Catherine de Braganza. These islands, were in turn leased to the British East India Company in 1668 for a sum of £10 per annum. The company found the deep harbor on the east coast of the islands to be ideal for setting up their first port in the sub-continent. The population quickly rose from 10,000 in 1661, to 60,000 in 1675; in 1687, the British East India Company transferred its headquarters from Surat to Bombay. The city eventually became the headquarters of the Bombay Presidency.

From 1817 onwards, the city was reshaped with large civil engineering projects aimed at merging all the islands in the archipelago into a single amalgamated mass. This project, known as the Hornby Vellard, was completed by 1845, and resulted in the total area swelling to 438 km². In 1853, India’s first passenger railway line was established, connecting Bombay to the town of Thane. During the American Civil War (1861-1865), the city became the world’s chief cotton trading market, resulting in a boom in the economy and subsequently enhancing the city’s stature. The opening of the Suez Canal in 1869 transformed Bombay into one of the largest seaports on the Arabian Sea.

Over the next thirty years, the city grew into a major urban centre, spurred by an improvement in infrastructure and the construction of many of the city’s institutions. The population of the city swelled to one million by 1906, making it the second largest in India after Calcutta. As capital of the Bombay Presidency, it was a major base for the Indian independence movement, with the Quit India Movement called by Mahatma Gandhi in 1942 being its most rubric event. After India’s independence in 1947, it became the capital of Bombay State. In the 1950 the city expanded to its present limits by incorporating parts of Salsette Island which lay to the north.

After 1955, when the State of Bombay was being reorganized along linguistic lines into the states of Maharashtra and Gujarat, there was a demand that the city be constituted as an autonomous city-state. However, the Samyukta Maharashtra movement opposed this, and insisted that Bombay/Mumbai be declared the capital of Maharashtra. Following a successful protest in which 105 people were killed by police firing, Maharashtra state was formed with Bombay as its capital on May 1, 1960.

The late 1970s witnessed a construction boom and a significant influx of migrants, which saw Bombay overtake Kolkata as India’s most populous city. This led to the creation of the Shiv Sena, a political outfit safeguarding the rights of ‘sons of soil’ in 1966. The city’s secular fabric was torn apart in 1992, after large scale sectarian violence caused extensive loss of life and property. A few months later, on March 12, simultaneous bombings at several city landmarks by the Mumbai underworld killed around three hundred people. In 1995, the city was renamed Mumbai by the Shiv Sena party government of Maharashtra, in keeping with their policy of renaming colonial institutions after historic local appellations. There have also been bomb explosions on Public Transport Buses in the past couple of years. In 2006, Mumbai was also the site of a major terrorist incident in which over two hundred people were killed when several bombs exploded almost simultaneously on the Mumbai Suburban Railway.