Venkatapati Raya was dynamic ruler full of a zeal and energy. He did not believe in the policy of his predecessor to remain on the defensive. He was a great warrior and carried sword and fire into the territories of his enemies.

He inflicted a crushing defeat on the armies of Sultan Muhammad Quli Qutb Shah, who had invaded Vijayanagar and captured the forts of Gandikota and Nandyal (Nandel).

It infused spirit in the nobles and jagirdars of the Telugu country who were now prepared to help the Raya in driving out the invaders. The Sultan agreed that Krishna should form the boundary line between the two states as earlier.

With the exception of Kondavidu, Venkata was able to regain almost all the lost territories in the north-east and the extent of his empire extended to almost the same limits as in the days of the great Krishnadevaraya.

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He was, however, confronted with hostile elements inside his dominions. Mostly, they were disgruntled chieftains who were unwilling to accept his authority. Included among them were the great nayakas of Madura, Jinji and Vellore and the chief of Kolar and Nandyal.

Venkata was not a person to tolerate insubordination from any quarter. He came down upon them with a strong hand. He had to fight three successive rulers of Madura to compel them to accept his sovereignty. He annexed Vellore in 1604 to avoid any mischief from its recalcitrant chief. Even he transferred his capital to Chandragiri from which he could keep check on their activities.

Venkata was thus able to restore the prestige of the empire and unify the country. But soon he was faced with grave problems which threatened the whole of Deccan. The Mughals were now comparatively free from their wars in the North and cast longing eyes on the South.

Akbar had already conqured Ahmadnagar and Asirgarh was his next target. Even a secret emissary from Akbar had visited Chandragiri. In 1604, Akbar sent his official representative to meet Venkata. The death of the Emperor, however, precluded any further developments.

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Venkata, like his predecessors, kept cordial relations with European traders particularly the Portuguese. Even there was an exchange of representatives between Goa and Chandragiri. Even Philip III, King of Portugal thanked the Raya for the facilities afforded to the Jesuit mission.

But when the Portuguese tried to interefere in internal matters, he firmly put them down. The Portuguese also earned the disfavour of the Raya when the Jesuit mission was withdrawn on the plea that it was subservient to a Hindu king. The Raya allowed the Dutch to carry on the trade from Pulicat.

The Portugese were furious and turned out the Dutch which greatly infuriated the King. He ordered the Portuguese to turn out and let the Dutch build a factory at Pulicat.