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Udaipur is a city in the southern part of Rajasthan state in western India. It is the administrative headquarters of Udaipur district and division. The city was established by Maharana Udai Singh II (1533–72) as a new capital of the Mewar kingdom on the Banas River, after his defeat at Chittorgarh by Mughal emperor Akbar . Udaipur was known to be an important trading centre for textiles, especially silk during 16th century onwards; it remained so until 18th century when raw cotton became available from Bengal and Gujarat . The Mughals controlled Udaipur State from 1568 to 1728 AD. In 1818, it became a princely state under British protectorate , before being merged into India's Rajputana Agency ; later becoming part of Central India Agency ; finally merging with Indian Union in 1949 as present-day Rajasthan State .