However British government developed institutions in England and Ireland which eventually led to overall greater wealth and equality for most of the population. Whereas in India these institutions were systematically short-circuited to create inequality and a locus of power/wealth that favoured British colonialists.

Oh, the British Raj treated the Indian poor and lower classes like untouchables, with a good dose of racism mixed in. I've seen images barring Indians from establishments; this report mentions "No dogs or Indians allowed" https://www.smh.com.au/world/no-dogs-or-indians-colonial-bri...

You still see casteism and classism in Indian today, although it may be more subtle.