The Princely Federation is a nation in south India. It borders The Dominion of India to the north, the Bharatiya Commune to the northeast, Portugals colony of Goa to the west, Madras to the southeast and has a maritime boundary with the German Empire in the south.
With the revolution of 1925 occurring in the British homeland, the Empire collapsed and India entered a power vacuum which various factions raced to fill. The creation of a federal state in the south was more of an attempt by the local rulers to protect their lands and riches from the chaos rather than a pre-planned act of rebellion, but nevertheless it proved a successful means of doing so. Over the course of the 1920s, the Federation managed to emerge as a stable nation, and one in which each of the local princes and rajahs had a say in government. Unsurprisingly, tensions have arisen among the lowers classes of society about their exclusion from the political process in the Federation, and the rajahs increasingly believe that Bengalese syndicalist influences are behind these cries of unrest. By 1936 Princely Federation has asserted control peacefully and by force across the entire southern part of the subcontinent, but further expansion is limited by the other two major regional powers to emerge from the vacuum - the syndicalist Bharatiya Commune, and the loyalist Dominion of India. However, the current balance of power suits the ruling princes of the Federation for the moment, as it prevents aggressive behavior lest the status quo collapse like a house of cards.
Perhaps the one exception to the deadlock however is the island of Ceylon, which is currently in German hands. Many of the rajahs feel that the island could all too easily act as a base for a new wave of Germanic colonial aggression into India, and this fear is not eased by the fact that Germany has already refused two offers by the Federation to buy the island. In 1936 the Princely Federation is for the most part an isolationist burgher republic, focused on promoting stability and trade in a troubled time.