While India is booming in many ways, it still cannot be called developed. There is still a huge divide between the rich and poor and poverty is still a major roadblock.
What you are not getting is that while outsourcing does mean cheap labour for Europe and US, it is not necessarily cheap for India(you mentioned keeping in-house). What you think is cheap are standard wages in India. It is cost cutting for US companies but not for Indian companies.
I was trying to point out that these same pool of people (low-paid workers in India and/or China) are necessary to the economies of all developed economies. And so it's not really fair to say India isn't a developed economy simply because it contains this pool of people.
There are countries where all of the largest expenditures (except oil) are for products produced domestically by the non-poor classes.
Even here in the US. The only significant things that I, personally, spend money on that are significantly made overseas are my car, oil, and computer. Even if the price of those all doubled, it would still be only a small part of my budget.
I don't live in the US, but I was under the impression that the vast majority of consumer goods for sale were fabricated in China (or perhaps assembled from parts fabricated in China). Is that not your perception?
I may be wrong, but also, your purchasing habits may not be in line with the majority.
Or maybe you aren't talking about the US? I think the same is true of the UK - are you talking about other European countries? Which of them still has a significant manafacturing base?
True. There's a long way to go before India can be called developed. However, the good thing about the moon mission is that it is a testament to the quality of the engineering talent at ISRO. Given that ISRO is significantly behind other options as a career for Indian engineers, the fact these engineers themselves are so competent is good news for the engineering ecosystem in India.
I am well aware of the situation in India, while it is true that there are competent engineers at ISRO, it is also saddening that the govt. is not allocating sufficent money for research. Most of the brightest talent is absorbed by private companies as it is a much better choice compared on monetary basis.
You could look at is as Europe and the US just outsourcing their cheap labour, whereas India keeps it in-house?