In 1947 the pre-Independent Indian Princely States, were 565 and they had about 28% of the the Indian population, Also these States occupied approximately 48% of the Indian territory.
The people of the Princely States were not considered to be British subjects and legally, they did not constitute a part of British India.
The Princely States were independent and self ruled which allow them to have their own legal system as well as universities, railways and many different types of infrastructure. Even though there was cooperation with British ruled India which was considered an alliance, the Princely States were autonomous in their control of their own States. In other words, they remained free from British rule.
About 70% of the princely States were ruled by Marathas, some were ruled by Muslims and others were ruled by Jat.