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State Governments of India are the governments ruling over the 28 states and 3 union territories (8 union territories of India but 3 union territories have Legislative Assembly as well as governments) of India with the head of Council of Ministers in every state being the Chief Minister. Power is divided between the Union government (federal government) and the state governments.
Each state has a legislative assembly. A state legislature that has one house – the State Legislative Assembly (Vidhan Sabha) – is a unicameral legislature. A state legislature that has two houses – the State Legislative Assembly and State Legislative Council (Vidhan Parishad) – is a bicameral legislature. The Vidhan Sabha is the lower house and corresponds to the Lok Sabha while the Vidhan Parishad is the upper house and corresponds to the Rajya Sabha of the Parliament of India.
While the Union government handles defence, external affairs etc., the state government deals with internal security and other state issues. Income for the Union government is from customs duty, excise tax, income tax etc., while state government income comes from sales tax (VAT), stamp duty etc.; now these have been subsumed under the various components of the Goods and Services Tax.
The Sarkaria Commission was set up to review the balance of power between states' and the Union governments. The Union government can dissolve a state government in favour of President's rule if necessary, subject to certain conditions, as ruled by the Supreme Court of India in S. R. Bommai v. Union of India. It is for 5 years only.