Relations Between Union and States
The Government of India may, by agreement with a foreign territory's government, undertake executive, legislative, or judicial functions vested in that territory's government - subject to whatever law on exercising foreign jurisdiction is then in force.
This lets India's government, by mutual agreement, take on certain governance functions for a territory outside India's own borders - an unusual but historically relevant provision, particularly connected to certain small territories India had special arrangements with in earlier decades.
This kind of provision has historically been relevant to certain small territories India had special administrative arrangements with by agreement, before their status was later more permanently settled.