Poverty in India - Analysis and Possible Solutions

Thomas Friedman said in his book " the world is flat " that capitalism is the cause for unequal wealth but socialism is a cause for equal poverty amongst the people.
India is a confused country which tried to adapt socialism at start and now slowly moving to capitalism. We are almost through the first decade of 21st century and still India rising doesn't seem to appeal us.
Let us see what India has done for the statistics sake.
When India really became free in 1947, following were the troubles it had to face when it had no experience of running the government, Literacy, poverty, and caste dominance on the society with more than 300 provinces and more than 1200 languages and dialects. The public transport was pathetic, country had no money to run government and do public welfare, the people were ignorant of changes happening in
neighborhood countries and Hindu-Muslims had a friction due to the newly formed Pakistan surrounded on both sides. However the government tried the best in the initial few years and then suddenly lost the war. The population explosion was unbearable for the Indian soil and country faced the hunger and poverty to the maximum.
This scenario was clearly evident from the following statistics.
Year 1947
literacy rate: 28%
% population below poverty line: 47%
India had started out in the 1950s with:

• high growth rates
• openness to trade and investment
• a promotional state
• expenditure awareness
• macro stability

literacy rate: 45%
% population below poverty line: 51% (?????)
But we ended the 1980s with:

• growth rates (Hindu rate of growth)(only 3.5% growth per annum)
• closure to trade and investment
• a license-obsessed, restrictive state (License Raj)
• inability to sustain social expenditures
• macro instability, indeed crisis.

The country faced a severe shortage of money and finally in the end of the license raj the economy was made open to all. This changed the scenario completely. The Chinese had achieved the unpredictable development since 1979 and now India had joined the league. Other nations surrounding India including rival Pakistan had no intention of keeping their economy as such lazy. They were already practicing and achieving good growth rate during this time. By the end of 2009 government introduced a lot of schemes which have caused the economy to boom and eradicate poverty. Opening the economy meant that we have a lot of investment and so we have a lot of new jobs created which would not had been possible. People getting fat salaries showed the unrealistic picture of economy rising but.....
The but came because of the shocking statistics which are revealed daily. India is achieving a growth rate of 8 % annually. But the population which is getting alleviated to the level of above poverty line is very less.
Today 27 % of population of India is still below poverty line and threshold of 1.5$ per day limit.
The challenge what India is facing today are:
1. Enmity with Pakistan and making the unavoidable war with Pakistan in future stretched currently like bubble-gum
2. The problem of caste and religions.
3. Corrupt politicians.
4. Imbalance of the regions.
5. Lack of infrastructure
6. water shortage in some and excess in others.
7. Linguistic differences.
8. Regional politics.
9. No strict rules for public sector employees on low performance.
10. Internal rebels Naxals, Bodos, etc.
11. long pending disputes within states and lack of neutrality with the problems.
12. Dumb legal system with a flaw for every law.
13. Reservation showed way to people and led to the competition nowhere seen in world in different communities to prove themselves more backward than others.

Phew I was only able to see these as major issues which we need to solve, may be you readers give in some comments for this article.It will be good to know about your views on this topic and suggestions.
I am no politician but APJ's vision 2020 for India doesn't seem realistic to me but with that I don't loose my hope. After all everything's are only statistics which can be overcome if all get united for a cause. If King Brutus could do everything to fight and win the kingdom by seeing a damn spider weaving his net with several unsuccessful attempts, i am no king Brutus but can definitely try for the stuff which can help he nation.