It's also a matter of priorities. India has(had) significant amounts of people living in pretty bad conditions ( like poor quality housing with no running water).

Which do you prioritise, lifting people out of poverty/squalid living conditions, research, industrial expansion, power projection (aircraft carriers so that India can protect it's interests, live up to it's potential, counter Chinese expansion), etc. ? There's a decent argument to be made that just encouraging and investing in industry and research will increase incomes and improve living conditions but it's unlikely to be sufficient.