India may eventually industrialize but is likely to face institutional challenges that will prevent it from reaching the same level of wealth as China, the United States, or wealthier European countries. There are deep-rooted institutional issues that would require a fundamental restructuring of the Indian government to overcome. However, such a restructuring could lead to new conflicts due to the delicate balance of power among the diverse population, particularly between the Hindu majority and the large Muslim minority. Any significant changes could potentially lead to the country splitting into smaller entities, as seen during the independence from Pakistan.

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