- While the Indian States enjoy a federal relationship with the Union Government with the division of legislative and executive powers, in the case of a UT, it is more of a unitary relationship with the Union Government as all the legislative and executive powers reside with the Government of India.
- A State is a constituent division and has its own elected government that has the powers to frame laws while a Union Territory is a small administrative unit and is ruled by the Union Government except for Delhi, Jammu and Kashmir and Puducherry.
- A Governor is the constitutional head of the State while the President of India is the executive head of the Union Territory. Also, the administrator’s position is quite distinct from the position of a Governor of a State. He/She does not have the discretion accorded to the Governor, whose is an independent position under the Constitution. The administrator is an agent of the central government.
- The Chief Minister elected by the people administers the State while the Union Territory is administered by an administrator or Lieutenant Governor appointed by the President of India.
- States enjoy autonomous powers while the Union Territories do not have autonomous powers.