INDIC
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"India" is a derogatory term coined by the Greece to describe the civilizations from beyond the Indus river. Princely states already exist since before the British came. All they do was just exploit it. Remember India never really have an "Empire" they have Confederation.
Its not a derogatory term but obtained from the Greek word Indios(Indus or Sindhu river), before that Achaemenid Empire named India as "Hind" from the same word Sindhu which later became Hindustan.
This is Mughal Empire in 1707,
It was soon replaced by Marathas Empire in most of the Mughal Empire along with few states, this is Maratha Empire in 1960
Seeing this turmoil, British started conquest of India and they manufactured about 562 Princely states by making relatives fight each other, governor rebel against their king or arming one state against another making India internally weak.