(a) The Indian soldiers were unhappy because of their low salary and poor prospects of promotion. All the high ranks in the army were reserved for the British only. The troops were not properly distributed. The key lace like Delhi and Allahabad had no British armies.
(b) The last Mughal Emperor was Bahadur Shah. Lord Canning announced that Bahadur Shah's successor would not be allowed to use the imperial title. Such a discourtesy to the Mughal Emperor hurt Muslim sentiments considerably. Dalhousie's refusal of pension to Nana Saheb, that adopted son of the ex-Peshwa was resented by the Hindus in general and Nana Saheb in particular.
(c) The British rulers deliberately crippled Indians art and crafts by imposing duties on Indian silk and cotton textile in Britain. On the other hand, British goods were imported into India at a nominal duty. Millions of artisans and craftsmen lost their jobs and had no alternative source of income.