It's not just that technological advancement will destroy the value of low-skilled labour, it will also directly raise the barriers to entry into modernity. Think about the struggle China is facing in developing an indigenous semiconductor sector - the vast and consistent industrial policies and enormous sums of money - and extrapolate that out to technologies in 2030-2040. The increasing competition between the US/EU and China which will further drive the pace of technological advancement - it's an endless tech arms race. The longer it takes a country to become a producer of technology, the more difficult it becomes and the dimmer its prospects.
So India is hit with the double whammy of a higher and ever increasing barrier to entry and ever diminishing returns on its only hope of ever surmounting its barrier.
