State governments in India are the governments ruling States of India, and the head of the council of ministers in a state is chief minister. Power is divided between thecentral government and state governments. While the central government handles military and external affairs etc., the state governments deal with internal security (through state police) and other state issues. Income for the central government is fromcustoms duty, excise tax, income tax etc., while state government income comes fromsales tax (VAT), stamp duty etc.
The Sarkaria Commission was set up to review the balance of power between states and the union. The central government can dissolve a state government in favor ofPresident's rule if necessary. The state ofJammu and Kashmir has higher autonomy compared to other states by virtue of Article 370.