1) Exactly. India oversold the importance of its market. It thinks that just because it has a similar population size with China, its market must hold similar weight. Well it doesn't work like that in real life is it? It actually depends on good governance, not population size.
China have no problems joining into a multilateral institution where the US is supreme, like the WTO. The rest is history. But India just couldn't see past its ego. So there goes the opportunities.
2) Correct. With good governance, the IMF cannot cripple your economy and sovereignty. China had borrowed a lot from the IMF with no issues. But in countries with poor governance, typically 3rd world countries. That IMF debt becomes a burden. On the mild side, they might risk falling into the middle income trap. On the extreme end, they default on that debt, and the IMF comes in and impose their policies on their country.
Indeed R&D is controlled by the local government and companies. But with less money moving around, what R&D that needs funding is going to suffer. More ambitious R&D projects would have to be toned down.
Nevertheless before Modi, we actually see some real R&D in the STEM field. That yielded much of India's technology today. Arjun, Tejas, and the Indian Space Program were all developed during those times. But ever since Modi came into power. DRDO, who used to develop Balistic Missiles are developing a Bukhari kerosene heater. Then we see all these R&D into cow dung products. Encouraged because of Hindutva ideology. One have to wonder, where is India's R&D actually heading to?
...LOL.