Question

New states come to exist through union, consolidation,confederationetc here confederation refers to

Answer 1

an organization which consists of a number of parties or groups united in an alliance or league.

Answer 2

A confederation is an association, group, or an organization that in turn consists of small size groups.

These are basically formed for either business reasons or for political purposes.

In this case, it is for political activities. When there are confederations, it becomes easy for the party to manage and make decisions.