I would classify India as an emerging economy, but the country is still underdeveloped. Economically speaking, India is growing at an impressive rate. But development is about more than national income. Amartya Sen (a world renown economist, and the co-developer of the Human Development Index used by the United Nations) defines development as 'freedom'. If we measure India's development based on his definition - taking into account political and civil freedoms, economic entitlements and distribution of income, gender equity, to name just a few factors - India could still not be classified as a developed country. The caste system is still very prominent in many areas, bride burnings still occur at an alarming rate, there is vast income inequality, and some farmers in so much debt that they take their own lives by drinking pesticide...just to name a few of the social issues. So I would say that given the economic growth in recent decades, India is on it's way toward development; but the country still has quite a ways to go.