somebozo
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Apparently you are not very well-informed. All Indian states except two have their own set of independent areas where central government authority does not run. There is a second set of administrative subjects which are directly managed by the centre; a third set of subjects is jointly managed.
Two states are outside these arrangements. These two states are specially provided for in the Indian constitution, and have extraordinary powers to settle their own affairs. One of these, the most empowered Indian state, also has its own constitution, promulgated in 1957. A look at that constitution will settle a lot of your aspirations and hopes for India.
It will be an excellent development if China understands that democracy has its benefits and persuades itself to democratise. When it does, it will join the other free nations of the world, which will be a very good thing.
That sounds more like fragmentocracy?