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Masulipatnam lost its prominence after the 18th century primarily due to the decline of the Mughal Empire and the rise of British colonial power in India. The shift in trade routes and the establishment of new ports like Calcutta contributed to its diminishing role in maritime trade. Additionally, internal conflicts and competition from other emerging ports further eroded its significance as a commercial hub. These factors collectively led to Masulipatnam's decline in influence and economic vitality.

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