Decline of the Portuguese rule in Goa
The appearance of the Dutch in Indian waters was followed by the gradual ruin of Goa. In 1603 and 1639 the city was blockaded by Dutch fleets, though never captured, while in 1635 it was ravaged by an epidemic. With the situation already volatile, Maratha troops entered parts of Bicholim in 1641 and began the minor Bicholim conflict, which ended in a peace treaty between the Portuguese and Maratha Empire.
Trade was gradually monopolised by the Jesuits. Jean de Thévenot in 1666, Baldaeus in 1672, and Fryer in 1675 describe its ever-increasing poverty and decay.
In 1683, the Mughal army protected it from capture by the Marathas. In 1739, the whole territory was attacked by the Marathas again, but could not be won because of the unexpected arrival of a new Viceroy with a fleet. This continued until 1759, when a peace pact was concluded with the Marathas.
In the same year, the Viceroy transferred his residence from the vicinity of Old Goa to New Goa (in Portuguese, Nova Goa), today's Panaji, which became the official seat of government in 1843, effecting a move which had been discussed as early as 1684. Old Goa's population fell steeply during the 18th century as Europeans moved to the new city.
In 1757, King Joseph I of Portugal issued a decree penned by his Prime Minister, the Marquês de Pombal, granting the Portuguese citizenship and representation to all subjects in the Portuguese Indies. The enclaves of Goa, Damão, Diu, Dadra and Nagar Haveli became collectively known as the Estado da Índia Portuguesa, and had representation in the Portuguese Parliament.
In 1787, a rebellion was started by some priests against Portuguese rule. It became famous as the Conspiracy of the Pintos.
Goa was peacefully occupied by the British from 1812 to 1815 in the context of the Anglo-Portuguese Alliance during the Napoleonic Wars.