Nah, I think that is Kerala-syndrome. The rest of the South, West and North are doing pretty well. Even the North-east's starting to show some signs of improvement.
The real problems are, I think, the Commie-states and the central belt, Jharkhand, Orissa and Madhya Pradesh. Jharkhand's starting to inch somewhere, but until our resource-heartland starts to show improvement, we'll be stuck with a bloating country on the one side, and a withering country on the other.
I disagree. We've actually witnessed a good deal more, more stable and more inclusive, although not more egalitarian, growth under this government.
But, where does all this come into foreign politics? I'm talking about using our 'equilibriating' position in the great scheme of things, to promise tax sops, support on negotiations for economic reform, Western-derivative technologies, etc. to military regimes like Burma and military-plutocratic/democratic governments like Cambodia and Thailand. The Commies, I'm sure, would be non-opposed to having these countries on our side.