India's growth story has a catch—S&P points out that high GDP numbers alone won't cut it. The real test? Sustaining that pace long enough to create jobs, narrow inequality, and actually capitalize on having the world's largest young workforce.

Meanwhile, fiscal reality is creeping in. Fuel tax cuts and rising fertilizer subsidies are squeezing the deficit this year. Growth is one thing, but paying for it while managing inflation and employment is the harder game.

Emerging market investors watching India need to look past the headline growth rate. The structural follow-through matters more than the sprint.