India's rise to the top of the global economy has been put on hold.  Yes, the economy is still growing.  But not at rates that we saw over the last few years.  MIT Sloan School deputy dean and professor of management S. P. Kothari points to India's improve conditions for the more than 400 million Indians living in poverty.  Without significant improvements in the education and overall standard of living for its citizens, India will always struggle to reach its economic potential.  Kothari give a bit of a prescription at Forbes:

First on the agenda: improving India’s hard infrastructure. The country’s power systems are woefully out of date. Its highways are congested; its roads are riddled with rocks and potholes. Its railways are limited, and its buses are overcrowded. Infrastructure is like a blood circulation system for an economy: It allows people and goods both physical and electronic to move quickly from one part of the country to another and out to the rest of the world. To make sure India’s economy is efficient and its exports remain competitive, India must make much-needed investments in infrastructure.

Its soft infrastructure, especially its education system, is also in need of investment. Competing in the global economy requires an educated workforce, and though the country has made great strides in establishing a number of world-class universities, its primary and secondary schools are sorely deficient. India’s literacy rate is 74%. China’s, by comparison, is 92%. Rectifying this must be a priority.

The country’s regulatory apparatus, also part of its soft infrastructure, needs an overhaul, too. Corruption is an integral part of Indian society. Bribery is common even among middle class households. So is tax evasion. Business owners routinely squirrel away undeclared profits. And regulators look the other way.

Kothari goes on to write that more regulation is not the answer (just real enforcement of existing regulations), and no positive change will happen until India finds ways of increasing foreign direct investment. 

Read India's Faltering Boom, and How to Revive It here.