Based on the error "FROM country is not specified", it means the customer's Address does not have a Country. Yet, I see "India" in your screen capture. Was "India" typed in some address field or was it selected in the Country drop down?
See this extension - All States Package However, you would probably want to edit the .txt file to only keep states from India (lines that start with "IN,"). Also, note that the 'extension' is a .rar file, so you need an download/install an extractor tool like 7-Zip.