India is rich in resources but due to lack of skilled labours resources are not used properly. Dubai is a desert. Yet it is among the developed places of the world. Comparatively India is lagging behind. We have talent, we have ability to work, we have resources, we have man power and we have al most everything which is necessary for development. Yet we are lagging behind. This is due to backwardness. Spending money in Space Research is a step forward towards development.
True..economy of the country depends on how best the available resources are best utilized to maximum advantage. The example you gave of Dubai is one such, Dubai, Saudi Arabia and other Arab countries have only oil as a substantial resource and nothing else. The leaders of these nations, especially Dubai, knew that the oil too won't last forever so they built their economy around tourism and advanced so m uch ahead of us. Israel too is a desert country but lack of water did not stop them from advancing in the field of agriculture, what they have achieved in that is a shining example of what can be done with proper technology and research. We have everything from technology to vast reserves of variety of natural resources, intelligent manpower everything, but corruption and red tapism everywhere holds us down!