These states held great history with themselves; most of them were around since the classical period of Indian History. The term princely state was mainly brought into use from the time of the British Raj, when the British did not govern the states directly instead let the local rulers do it and also during the time of the rule of the East India Company . It was a kind of an indirect rule for the British. However they implemented some doctrines which enabled them to interfere in some of the internal affairs of the princely states.
When the British left there were 565 princely states in the Indian subcontinent which had official recognition. In 1947,40% of the total land mass of India under British rule was covered by princely states and contributed to 23% of the population of the entire pre-independence India. Hyderabad of the Nizams, Mysore and Travancore were some southern princely states, whereas Jammu and Kashmir along with Sikkim were in the Himalayas. From central India there was Indore, etc. Some of the princely states who had their prominence during British rule and hence were treated as superior and were entitled for a number of gun salutes at various ceremonies.
Some of the events which highlights the relationship of the princely states and the rule of the East India Company and later the British government are :-
The doctrine of lapse was a rule formed by Lord Dalhousie . He developed this idea to handle the questions related to the succession in the princely states. It was an add on to the Doctrine of paramountcy.
The princely states followed a system that rulers who did not have natural heirs were supposed to adopt someone to whom they would give the personal and political rights of being their son. This doctrine allowed such adoptions but when applied it saw rejection of last minute adoptions by the princely states and British annexation of that state. Lord Dalhousie preferred the Western rule more than the eastern form of rule. The annexation of Satara, jaitpur and sambalpur , baghat, chota Udaipur ,Jhansi and Nagpur from 1848 to 1854 was one of the reasons which fuelled the fire of the 1857 Indian Mutiny.
The princely states took the decision of aligning with the British and staying by their side during the first war of independence in order to safeguard their existence. Now that India is an independent state, a majority of the princely states had joined India in 1947 .