What holds us back?

You cannot make something out of nothing. That is if you have some soup in the cauldron, you will get soup in the ladle. If you have nothing in the cauldron, you will get nothing in the ladle. Why India is not growing is a puzzle. We have many educated people who want to move out of India. Why? Nothing seems to work here. Numerous policies and tall talk of foreign investments cannot create growth. New forces are being infused into old country. But when there is less capital than that is needed for industries, and when the people are not willing to take risks by investing in the market and when money is being tucked away as gold assets, we cannot do much by making laws. An economic solution is not present. We do not have enough economic resources to keep up with the global market.No matter what is done, stagnation persists. Political climate affects economic progress decisively . People do not have faith in leaders or their whimsical comments. Why is it that all the policies are not making a positive change?
RBI has cut rates by 0.25% right now to check inflation. In the last session of Parliament many Bills were passed to improve the financial status of India (or in the hope). For example:

Prevention of Money Laundering (Amendment) Bill 2012,
Unlawful Activities (prevention) Amendment Bill2012,

Enforcement of Security Interest-Recovery of debts laws Amendment Bill 2011,

Companies Bill 2012,
Banking Laws (Amendment) Bill 2011
It will take a long time for these to take effect on the market which will hopefully uplift us.Only when we become economically powerful, we have a say as a strong nation.