The development is hampered due to more regional politics. If you take the case of Tamilnadu politics, DMK and AIADMK rules the state based on dravidian idealogy since 1967. The national parties bite the dust before these regional parties. This is due to lack of clear cut decisions by the national parties on regional issues. Regional autonomy should be given to state governments in taking decisions of regional importance.
More autonomy should be given to states which will lead to development. If you consider Europen Union (EU) more or less equal to geographical area of India buthas 27 independant states Vs 31 states. Each EU member is progressing due to their indenpendant decision making powers rendered by EU parliament on many critical areas even though working on common currency and market. So, regional autonomy is the best way to suceed in near future.