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Relations Between Union and States
(1) Parliament may make laws for the whole or any part of India; a State Legislature may make laws for the whole or any part of that State. (2) A Parliament law isn't invalid merely for having extraterritorial effect.
This sets the basic territorial reach of law-making power: Parliament's laws can, in principle, cover all of India (and even have effects beyond India's borders), while a state's own laws are limited to that state's territory.
This is why a Parliament-made criminal law can, in specific circumstances, apply to acts by Indian citizens even outside India's territory, while a state law's reach is confined to within that state's own borders.