Following the first war of Independence in 1857, the East India Company was accused of mismanagement, and Bombay reverted to the British crown. With the outbreak of the American Civil War in 1861, and the opening of the Suez Canal in 1869, exports, specially cotton, from Bombay became a major part of the colonial economy.

The Great Indian Peninsular Railway facilitated travel within India. This network of commerce and communication led to an accumulation of wealth. This was channelled into building an Imperial Bombay by a succession of Governors. Many of Bombay's famous landmarks, the Flora Fountain and the Victoria Terminus, date from this time.