Explaination by yasheen:
Indian democracy has three parts:
1. Legislature (Lok Sabha/ Rajya Sabha / State Assemblies, etc)
2. Judiciary (All Courts - Supreme Court, High Court, etc)
3. Executive (All Govt machinery, Ministers, and other Govt offices under them)
India has three levels of governance:
1. Federal (Union Govt)
2. State Govt
3. Local Govt (Udaipur Municipal Corporation, village panchayats, etc)
All the levels of governance have all the three parts, legislature, judiciary and executive.
Now to answer your questions, MP is a Member of Parliament (which could be Lok Sabha or Rajya Sabha ). So, yes you are right that MP is bigger in the sense that they represent a larger constituency and form part of the Union Govt legislature.
MLA on the other hand is a member of state legislature (Vidhan Parishad). You would have also heard MLC, they are the same too. They are members of state legislature - Legislative Council.
So as MLA represents a smaller constituency in the State Government system, they are lesser in stature than the MPs.