Re: Nail on the head.
India is by no means poor and like RikC mentioned, India doesn’t need aid. http://www.telegraph.co.uk/news/worldnews/asia/india/9061844/India-tells-Britain-We-dont-want-your-aid.html.
Coming back to the poverty in question, let’s look at a simple analogy. You (India) are the bread winner of a poor family and you have only £1 on you. Given a choice between using £1 for a feast or feeding everyone just about enough using £0.5 and investing the remaining £0.5 on a plant that would help you grow stuff you can sell and make more money, what will you do?
Lets all be practical, priorities are different and every problem cannot be approached in the same way!