Emperor Indra III then confirmed the posting of the Arab governor and it seems as if the Arab governed a part of the Rashtrakuta Empire living in India for almost 2 decades (under 2 separate emperors). He also had Arab officials under him as his secretaries and staff.
Must be kept in mind, Rashtrakutas at this time were considered one of the 4 greatest empires of the world by everyone (Abbasid Caliphate, Tang China, Byzantine Empire, Rashtrakuta Empire). So it wasn't some small unknown state but one of the most powerful empires in the world.
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