If India was to do as a lot of people are implying here, they would be like most socialist sh!t holes, and be even worse off than now. For the most part, the west hasn't totally eradicated poverty in their own countries.
Frankly its a bit like the pot calling the kettle black. Keeping things in perspective in regards to the technological and social gradient over a short time frame, they have done far better then we in the west have ever achieved.
The piddling amounts they have spent on items they think are vital for the progression and security of their country would do stuff all to eradicate poverty in real terms.
A society needs to develop over a broad base, they are doing that, are they doing it right, who the f#$k knows. If it collapses then no.