India makes everything that China makes at a cheaper price. China makes everything that America makes at a cheaper price. Already China is the largest economy in the world. India is only 20 years behind China economically. America doing well at third largest economy but nothing like the 30% of World GDP in 1950.
The "Hindu rate" of growth, as mentioned by Thomas L Friedman, used to be about 3% annually. That's considered low. But it is also considered to be more safe and less volatile in the coming years. This is because with jobs being outsourced to India, the Indian economy is rising.
I think that most any country that is able to find valuable items and things to import and export that they could easily become major players in the global economy. The global economy is all about being able to import and export most, if not all, items that are manufactured and mass produced.
India is a nation with a huge population easily making it possible to produce goods at low cost and fast. The wages being so low in India, they can offer slave wages to produce goods that in the United States it would cost many times more. With this in mind, unless India changes labor laws; they will be able to compete on a large scale for now.
India can compete with other countries in the global economy, especially in the areas of computer science and chemistry. Indians have excelled in these disciplines in the modern era, and if India builds more factories and plants, there is no doubt they will be successful. Financing would then pour in and truly make India competitive.
India can compete with other countries in the global economy. I do not think it is right to right off any country no matter how bad or good they are doing. Sometimes all it takes is one new person in power and suddenly it starts doing way better than it was before.