The above classification lacked economic sustainability and a long-term administrative structure, and it did not reflect the nations' oneness. The Indian government created a system based on factors such as geographical, linguistic, cultural, and economic features. With this backdrop and an increasing desire for linguistic states, the first linguistically based Andhra state was established on October 1, 1953, by splitting Telugu spoken districts from the composite Madras state. On November 1, 1956, the Telengana region was annexed to Andhra Pradesh, resulting in the formation of Andhra Pradesh. The creation of the state of Andhra Pradesh in 1953 spurred a new round of demands for political recognition from other language and cultural communities. In December 1953, the States Reorganization Commission was established as a result of this. 

On September 30, 1955, the Commission issued a report recommending the reorganisation of India into 16 states and three territories. The study was largely accepted by the government, however it advocated reorganising India into 15 states and 7 territories. Finally, on November 1, 1956, Parliament enacted the States Reorganisation Act, dividing India into 14 states and six union territories.