Well India's per capita GDP is only $2900 (or $1000 in currency exchange terms), so when you say it's a rich country, that's a false statement, it's rich in pockets but with 800 million peasants, it's not going to industrialize overnight. Also it may come as a shocker to you, but income disparity is actually much lower in India than the U.S. or China. (As measured by the GINI index)
I think India has a bright future, literacy rates went from 12% in 1947 (wonderful job those Brit's did) to 75% now. India will achieve 95% literacy in 10-15 years. Life expectancy in India is 70 years (CIA world factbook). In Cambodia it's 62.1 years. I trust their analysis more than your statements.
What makes India "look" worse than other 3rd world countries is it's higher population density. The Indian government failed it's people and adopted socialism right when the population was growing fastest, hence the mess today. However, the Indian people are very entrepreneurial and since the reforms of 1991, India is progressing very well. BTW, I have pictures of New York City from early 1900's and also of European cities, they are not a very pretty picture either.