Indian state accommodating unknown artist (4)
I believe the answer is:
goya
'artist' is the definition.
(Francisco Goya)
'indian state accommodating unknown' is the wordplay.
'indian state' becomes 'goa' (Goa is a state of India).
'accommodating' means one lot of letters goes inside another.
'unknown' becomes 'y' (algebra).
'goa' enclosing 'y' is 'GOYA'.
(Other definitions for goya that I've seen before include "Francisco de ---- (1746-1828), Spanish painter of portraits" , "Francesco de ---, Sp. court painter" , "He painted Wellington" , "Old master" , "European painter" .)