You will have to clarify whether you are talking about economic development in the context of alleviation of poverty and the improvement of human development index. If it is so then an increase in national income does not improve the living standards of the masses living below poverty line. India, despite being at par with the developing world in terms of modern technology is yet to meet that challenge. The problem with sub-continent mostly stems from rigid class structures. The governments mostly rely on trickle down effect for development of the masses. The problem is income inequality. According to a survey increase in national income improves the development index by only 2 % whereas 1% decrease in income equality leads to an 8 % development in HDI. So in short a reduction in income inequality should be prioritized for real economic development.
