Rājya Vs Rāṣṭra

In this monologue, Kushal Mehra talks about the Rājya Vs Rāṣṭra distinction. Since the rise of Hindutva (Political Hinduism) the Sangh Parivāra is constantly accused of trying to convert India into a Hindu theocracy. The word Hindu Rāṣṭra is often translated as Hindu theocracy. But is this the right translation? Also, is this the right way of framing the argument in the 1st place?