The root cause isn't population in my opinion. If it is then China would have the same problem but they don't. I have been to China and India many times and I have many friends from both communities comprising of speakers of many dialects in their respective countries.
The root problem is attitude. For example, I would say about half the people who go to AIIMS would be ready to spend money on a movie to watch their favorite hero or heroine but would not spent the same amount for medical treatment in a private clinic. They would rather go to free government hospitals.
Another problem is the widespread corruption in India at every level. Corruption is a way of life in India so much that it has become a second nature for Indians to pay money even for services that should be offered by government servants free. Indians vote for corrupt politicians freely just for a small bribe the politicians pay. The Tamil Nadu state government is known to be extremely corrupt but they could still get enough votes to form a state government. Many of these corrupt state governments actually are proxies for foreign enemies of India. Yet Indians cannot see through them. This is just an example.
I stumbled upon a beautiful kirtan on YouTube yesterday by Radhika Das. The event was held in London and the audience paid 10 pounds to attend the Kirtan. And then Youtube recommended me another beautiful Kirtan from Russia also attended by huge number of paying participants.
I don't think Indians in India would pay even 200 Rupees to attend a Kirtan. They want everything free even when they can afford it. I will be happy if you can give me your cogent counter arguments to prove me wrong.
RE: We will be a developing country forever