I don't think you're quite right. The Bay Area is not a nation! It benefits from being part of the United States.
I also see no cogency in your oil example. Just because you need to process oil to put it to use, are you suggesting it has no value!? That seems wholly incorrect!
Anyway, I'm not here to argue. My bottom line is, India can and should be run better, because currently, it's run badly.
Human resources are the most important natural resource any country will by and far ever own.
That's also the reason why the 60 mile radius around Bay Area, a barren desert, has an economic output higher than several countries.