Fiddler on the roof is a musical made in 1971. but it is set on 1905 in Russia, they use the line "May you come to be In Israel a shining name" when doing the Sabbath prayers.
Did the writers were referring to the state of Israel? or where they referring to something else?
Israel was founded in 1948, so in 1905 there was no state of Israel as we know it, but when they say Israel in the context of the movie were they referring to the same place?
As an additional question, was it common for Jewish people to refer to Israel before the state was formed? how likely would it have been for me to hear Jews talking about Israel in the early 1900s?
The full prayer they sing
"May the Lord protect and defend you.
May He always shield you from shame.
May you come to be In Israel a shining name.
May you be like Ruth and like Esther.
May you be deserving of praise.
Strengthen them, Oh Lord,And keep them from the strangers' ways.
May God bless you and grant you long lives.
May the Lord fulfill our Sabbath prayer for you.
May God make you good mothers and wives.
May He send you husbands who will care for you.
May the Lord protect and defend you.
May the Lord preserve you from pain.
Favor them, Oh Lord, with happiness and peace.
Oh, hear our Sabbath prayer. Amen"
"Israel" is a common term for the Jewish people in all sorts of Jewish contexts. It can refer to roughly the area the state of Israel now occupies (which is usually referred to as eretz-yisrael, the land of Israel). But in this context, it certainly refers to the people Israel (i.e., the Jewish people at large). In Yiddish (which is the language the characters of Fiddler on the Roof would've spoken) they'd probably have colloquially called their people the equivalent of "the Jewish people", like we'd say in English, but using "Israel" as a reference to Jews in general was still something in use, even if it wasn't part of everyday language.
That usage is exceedingly common in Jewish liturgy. From "shema yisrael" (hear O Israel, a line from the bible in the liturgy) to "tzur yisrael" (the rock of Israel, a name for God in the liturgy) to "kol yisrael yesh lahem chelek ba-olam habah" (all Israel has a share in the world-to-come, a line from the Mishnah), Jewish religious use favors calling the people "Israel" over any other term (including "Jews").
"Israel" is a very old word for the holy land.