I think that's a common misconception tbh.
Yup Delhi and some major cities are in the north but the south has it's fair share of cities and development too. It's just as modern, but I think the south has managed to keep hold of it's true culture much better than the north. The developed parts of the north have completely westernized.
I'm sorry, i disagree with you there.
The distribution of illiteracy in india is pretty balanced between the north and the south actually. kerela has a literacy rate of 90%. it's the state with the best education system in India, and that's in the south. I think rural areas are a worry in terms of literacy but I don't think it's fair to say the majority of the illiterate or ignorance is in the south. Nope nope. Ignorance and illiteracy is found in the rural areas.
The south is generally more of a technology area and that's how it's thriving ATM, whereas in the north it's more to do with retail services, tourism and obviously the film industry.