A data-driven analysis highlights the vulnerability of small states in India due to their significant dependence on the Union government for financial support and resources. The article reveals that these states rely heavily on central grants and assistance, with some receiving over 90% of their total revenue from the Union government. This heavy reliance raises concerns about the fiscal autonomy and resilience of small states, especially in times of economic uncertainty. While central support is essential for their development, it also underscores the need for greater financial decentralization and local capacity-building to reduce dependence and promote self-sufficiency among these states. The data presented in the article sheds light on an important aspect of India’s federal structure, emphasizing the necessity of balancing central assistance with local empowerment to ensure the sustainability and growth of small states.